LEGISLATIVE UPDATES
CALIFORNIA DEPARTMENT OF INSURANCE
CALIFORNIA DEPARTMENT OF INSRANCE
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)
Uses catastrophe
modeling for precise
wildfire risk pricing,
factoring in
mitigation at
property, community,
and landscape
scales to ensure
market stability.
SUSTAINABLE
INSURANCE
STRATEGY
(2023- 2024)
CALIFORNIA DEPARTMENT OF INSURANCE
Mandates insurers
offer premium
discounts for
homeowners
implementing
wildfire mitigations
while rewarding risk
reduction.
CALIFORNIA
SAFE HOMES
GRANT
PROGRAM
(2025)
Grants for low-
income homeowners
in high fire hazard
severity zones to
fund defensible
space and home
hardening.
MAKE IT FAIR ACT
AB 1680
• Mandates compliance with Insurance
Commissioner recommendations from exams
and operational reports, within set timelines.
• Imposes fees for violations (with due process via
hearings and appeals).
• Comprehensive coverage options which requires
the FAIR Plan to offer a more robust homeowners
policy, reducing the need for separate policies for
basics like liability and water damage.
• Boosts accountability, consumer protections,
and pathways to shift policyholders back to
voluntary markets.
CALIFORNIA DEPARTMENT OF INSURANCE
DISASTER RECOVERY REFORM ACT
SB876 (protections after a declared emergency)
• Requires Insurer to have a “Disaster Recovery
Plan” for claims handling and meeting timelines
• Dou b le s p e n a ltie s on unfair claims practices
• Mandates insurers to pay direct restitution to
policyholders when they violate the law.
• Requires 5 - days status update when a new
adjuster is assigned
• Expands Additional Living Expenses to 100% of
policy limits
• Expands up - front payments, payable with interest
if late.
CALIFORNIA DEPARTMENT OF INSURANCE
DISASTER RECOVERY REFORM ACT
SB876 Proposed Bill (protections after a declared emergency) • Ma n d a tory Re p la c e m e n t Cos t Op tion s
that require updated replacement cost
estimates on new and renewal policies.
• Sa fe r Re b u ild in g Sta n d a rd s that apply
mandatory building code upgrade
coverage at the time of rebuilding, so
homes meet current codes after a loss.
CALIFORNIA DEPARTMENT OF INSURANCE
SMOKE DAMAGE RECOVERY ACT
SB 1795 Proposed Bill
• Establishing science-based, health-driven
standards for inspection, testing, and
restoration of smoke-damaged homes.
• Creating uniform insurance claims-handling
practices and required restoration protocols.
• Developing health-based guidelines to
determine when a home is safe for families to
return.
• Designating the appropriate state and local
agencies to implement and enforce these
standards.
• Providing immediate relief by allowing
survivors to rely on local public health
standards for smoke testing and restoration
while statewide standards are being finalized.
CALIFORNIA DEPARTMENT OF INSURANCE
CALL TO
ACTION
SUPPORT AB 168 0 , SB 1795 , &
SB 8 76
a n d s tre n g th e n in s u ra n c e
p rote c tion s for Ca liforn ia n s .
CALIFORNIA DEPARTMENT OF INSURANCE
https://bit.ly/CDILegAction
CONSUMER
ALERTS
CALIFORNIA DEPARTMENT OF INSURANCE
STAY INFORMED
SIGN UP!
NEW REGULATIONS,
CONSUMER SAFETY
EDUCATION,
FRAUD PREVENTION,
UNFAIR AND DECEPTIVE
BUSINESS PRACTICES,
INSURANCE ISSUES
STATEWIDE
EDUCATION
SERIES
JOIN US : Please share with
your constituents.
qrco.de/CDI2026
CALIFORNIA DEPARTMENT OF INSURANCE
Residential
Insurance
October 21
Health
Insurance
August 19
Business
Insurance
June 17
Life, Annuities &
Seniors
April 22
TOPICS & DATES
Mandates insurer
Disaster Recovery Plans.
Doubles penalties for
unfair practices;
requires direct
restitution.
Boosts Living Expenses
by 100% with
mandatory up-front
payments.
Updates replacement
costs to meet current
building codes.
Disaster Recovery
Reform Act (SB 876)
Mandates insurer Disaster
Recovery Plans.
Doubles penalties for unfair
practices; requires direct
restitution.
Boosts Living Expenses by 100%
with mandatory up-front
payments.
Updates replacement costs to
meet current building codes.
California
Department of
Insurance
800-927-4357 [email protected] @insurancecagov | @cadeptofinsurance | @CDInews 2026
Legislative
Priorities
Smoke Damage
Recovery Act (AB 1795)
Make It FAIR
Act (AB 1680)
Sets health standards for
smoke testing and restoration.
Certifies insurers in modern
claims handling.
Triggers immediate aid via local
health standards.
Mandates science-based
restoration protocols.
Overhauls FAIR Plan
transparency and claims
handling.
Creates a transition path
back to the private market.
Imposes violation fees and
mandates CDI compliance.
Consolidates coverage to
eliminate redundant
policies. We invite your office to join cities and counties statewide in submitting a letter of support for this bill.
https://bit.ly/CDILegAction.
CALL TO ACTION
CALL TO ACTION
EXPANDING WILDFIRE SAFETY EFFORTS
Strengthen California Homes Grant Program (in process):
Provides grants for low-income homeowners in high fire hazard zones for Zone 0 and Class A roofing improvements.
Sustainable Insurance Strategy (2023–2024):
Expands coverage using catastrophe modeling to reflect property and community mitigation efforts.
Safer from Wildfires (2022):
Mandates premium discounts (4–40%) for mitigated homes with wildfire standards.
LEARNING SERIES CONSUMER ALERTS
CALIFORNIA DEPARTMENT OF INSURANCE
COMMUNITY RELATIONS & OUTREACH BRANCH
INSURANCE
MADE CLEAR:
2026 CONSUMER
LEARNING SERIES
FREE INSURANCE EDUCATION SERIES:
PROTECTING WHAT MATTERS MOST
The California Department of Insurance
invites you to join our free statewide
webinar series designed to help
consumers better understand important
insurance topics. Each session features
experts who will answer questions and
provide helpful information and
resources so you can make informed
decisions for yourself and your family.
Register using the
QR code or visit
qrco.de/CDI2026
6:00PM- 7:00PM
TOPICS & DATES
February 18
Auto
Insurance
April 22
Life,
Annuities
& Seniors
June 17
Residential
Insurance
August 19
Health
Insurance
October 21
Business
Insurance
800-927-4357 (HELP) insurance.ca.gov [email protected]