Governor Gavin Newsom has signed Senate Bill 495, authored by Senator Ben Allen (D-Pacific Palisades) and sponsored by Insurance Commissioner Ricardo Lara, creating new consumer protections for wildfire survivors in California. The measure aims to simplify and speed up insurance payments for those who suffer total property losses during declared emergencies.

Key Provisions Beginning January 2026

Under the new law, insurance companies will be required to pay 60 percent of a policyholder’s personal property (contents) coverage limit, capped at $350,000, without requiring a detailed inventory for at least 100 days following a total loss in a declared emergency.

Currently, insurers are only required to pay 30 percent of the primary structure (dwelling) coverage limit, with a cap of $250,000. This formula — based on dwelling coverage rather than personal property—has been criticized as confusing and insufficient for many policyholders, particularly those with higher coverage limits.

The legislation also provides additional time for policyholders to complete the detailed inventory process, extending the previous 60-day proof-of-loss requirement. Survivors of recent wildfires often could not access their properties for extended periods due to safety concerns, making the process especially burdensome.

Legislative Intent and Consumer Impact

Senator Allen said the bill was designed to address “inefficiencies in our insurance system that unnecessarily delay the urgently needed financial support survivors are justly due.” He thanked Governor Newsom and Commissioner Lara for their efforts to “ensure fairer upfront payments” to wildfire survivors.

Commissioner Lara noted that the measure was developed in response to feedback from wildfire survivors, emphasizing the importance of providing “fair upfront payment” so policyholders can begin recovery without being required to document every lost item immediately.

Data Reporting Requirements for Insurers

Beyond immediate consumer protections, Senate Bill 495 introduces new reporting requirements for insurers. Companies must now provide the California Department of Insurance with annual, point-in-time data on reinsurance and catastrophe modeling for policies written in the state during the previous year.

This information will help the Department analyze wildfire-related risks and monitor long-term market trends. The data will be publicly aggregated to assess both short- and long-term patterns, supporting the Department’s Sustainable Insurance Strategy—a program aimed at expanding insurance availability in wildfire-prone regions and maintaining the stability of California’s insurance market.

Administrative Oversight and Next Steps

The new law also authorizes the Insurance Commissioner to issue bulletins or regulations outlining the parameters of any attestation forms insurers may require from policyholders. The goal is to make post-disaster processes clearer, more transparent, and less burdensome for individuals recovering from catastrophic losses.

Senate Bill 495 takes effect in January 2026.

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