WILDFIRE RECOVERY
LEGISLATIVE UPDATES
CALIFORNIA DEPARTMENT OF INSURANCE
CALIFORNIA DEPARTMENT OF INSRANCE
Judith Piña
Outreach Specialist
Community Relations & Outreach Branch
INSURANCE MARKET CONTEXT
CALIFORNIA DEPARTMENT OF INSURANCE
• Growing intensity and severity of
climate events
• Historic inflation
• Rising cost of reinsurance
• Fewer insurance options
• Accelerated growth of the FAIR
plan
SAFER FROM
WILDFIRES
(2022)
Expands coverage
options through use
of catastrophe
modeling for
improved wildfire risk
analysis, factoring in
mitigation at
property and
community to ensure
market stability.
SUSTAINABLE
INSURANCE
STRATEGY
(2023-2024)
CALIFORNIA DEPARTMENT OF INSURANCE
Mandates premium
discounts for
homeowners
implementing
wildfire safety
actions – savings
between 4% and
40% of premium
depending on level
of risk.
STRENGTHEN
CALIFORNIA
HOMES GRANT
PROGRAM
(in process)
Creating grants for
low-income
homeowners in high
fire hazard severity
zones to fund Zone 0
and Class A roofing –
based on successful
programs in U.S.
Southeast.
BUILDING ON WILDFIRE SAFETY
INTERLOCKING LEGISLATIVE
STRATEGY FOR IMPROVING
POST-DISASTER RECOVERY
CALIFORNIA DEPARTMENT OF INSURANCE
Smoke damage
restoration
standards
FAIR Plan
reform and
accountability
Coverage gaps
and policy
clarity
SMOKE
DAMAGE
RECOVERY
ACT
CALIFORNIA DEPARTMENT OF INSURANCE
What it will do:
Establish public health
requirements for the testing and
restoration of smoke damage to
standing homes while creating
insurance training and certification
standards to address decades-old
AB1795 introduced outdated claims practices . Febrary 11, 2026 by Assemblymember Mike Gipson
SMOKE
DAMAGE
RECOVERY
ACT
CALIFORNIA DEPARTMENT OF INSURANCE
• Immediate help for survivors if a public
health agency issues standards for smoke
testing and restoration while statewide
standards are being finalized.
• Establishing science based, health
driven standards for inspection, testing, and
restoration of standing smoke damaged homes.
• Creating uniform claims handling
practices and required restoration protocols. AB1795 introduced February 11, 2026 by Assemblymember Mike Gipson
DISASTER
RECOVERY
REFORM ACT
SB876 introduced January 6, 2026 by
Senator Steve Padilla
CALIFORNIA DEPARTMENT OF INSURANCE
What it does:
Speeds up disaster recovery for
homeowners and renters through
improved insurance coverage and
expanded consumer protections –
responding to wildfire survivors’
call for swifter claims payments
and an end to delays and
runarounds by insurance
companies.
DISASTER
RECOVERY
REFORM ACT
SB876 introduced January 6, 2026 by
Senator Steve Padilla
• Requires Insurer to have a “Disaster Recovery
Plan” for claims handling and meeting timelines.
• Doubles penalties on unfair claims practices.
• Mandates insurers to pay direct restitution to
policyholders when they violate the law.
• Requires 5-day status update every time a new
adjuster is assigned.
• Expands Additional Living Expenses by 100% of
policy limits.
• Expands up-front payments, payable with interest
if late.
CALIFORNIA DEPARTMENT OF INSURANCE
DISASTER
RECOVERY
REFORM ACT
• Mandatory Replacement Cost Options
that require updated replacement cost
estimates on new and renewal policies.
• Safer Rebuilding Standards that apply
mandatory building code upgrade
coverage at the time of rebuilding, so
homes meet current codes after a loss.
CALIFORNIA DEPARTMENT OF INSURANCE
SB876 introduced January 6, 2026 by
Senator Steve Padilla
MAKE IT
FAIR ACT
AB1680 introduced February 2, 2026 by
Assemblymember Lisa Calderon
What it does:
Overhauls the FAIR Plan by
strengthening claims handling,
expanding coverage options, and
improving transparency for wildfire
survivors — with a strategic plan
to return people to the regular
market.
CALIFORNIA DEPARTMENT OF INSURANCE
MAKE IT
FAIR ACT
AB1680 introduced February 2, 2026 by
Assemblymember Lisa Calderon
• Returning people to regular insurance market by
requiring a plan and education.
• Imposes fees for fair claims violations with due
process via hearings and appeals.
• Comprehensive coverage options with a more
comprehensive homeowners' policy, reducing the
need for separate policies for basics like liability
and water damage.
• Mandates compliance with Insurance
Commissioner recommendations from exams
and operational reports, within set timelines.
CALIFORNIA DEPARTMENT OF INSURANCE
CALL TO
ACTION
SUPPORT LEGISLATION
to strengthen insurance
protections for Californians .
CALIFORNIA DEPARTMENT OF INSURANCE
https://bit.ly/CDILegAction
CLCA PROGRAM OVERVIEW
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CONSUMER
ALERTS
CALIFORNIA DEPARTMENT OF INSURANCE
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CALIFORNIA DEPARTMENT OF INSURANCE
Residential
Insurance
October 21
Health
Insurance
August 19
Business
Insurance
June 17
Life, Annuities &
Seniors
April 22
Auto
Insurance
February 18
TOPICS & DATES
CONTACT
THE
DEPARTMENT
OF
INSURANCE
CALIFORNIA DEPARTMENT OF INSURANCE
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