SACRAMENTO, Calif., Sept. 2, 2026 /PRNewswire/ — Fire survivors and consumer advocates celebrated the passage of strong new insurance consumer protections by the California legislature today that will help families keep their home insurance coverage and get the insurance benefits they pay for after a disaster. The bills, authored by Senator Ben Allen and Senator Sasha Renée Pérez and sponsored by Consumer Watchdog and the Every Fire Survivor’s Network, now head to the Governor for signature.
“Insurance determines whether fire survivors can rebuild our homes and our lives. These bills restore a basic promise: if we pay for insurance, insurers must keep their promises, tell us what it takes to stay insured, and pay what they owe on time. When insurance works, families recover,” said Joy Chen, Eaton Fire survivor and Executive Director of Every Fire Survivor’s Network.
“Arbitrary claims delays and unjustified non-renewals strip consumers of the financial security that comes with insurance. These critical reforms hold insurance companies to their promises and keep families housed with clear instructions on what it will take to stay insured,” said Carmen Balber, executive director of Consumer Watchdog.”We want to thank lawmakers for supporting these three bills from Senator Pérez and Senator Allen, and the thousands of Californians and dozens of organizations who raised their voices to back insurance that works for everyone.”
“The passage of SB 877 and SB 878 sends a clear and strong message to the insurance industry that fire survivors and policyholders across the state won’t stand for the status quo. These two bills will require greater transparency from insurance companies in how loss estimates are determined and will penalize companies for unnecessary delays in paying claims. I urge Governor Newsom to sign these bills that will make a real difference for homeowners, especially for those who have faced incredible hardships following the Eaton and Palisades fires,” said Senator Sasha Renée Pérez (D-Pasadena).
“Too many Californians have wrongfully lost their insurance coverage, or aren’t provided with a viable path forward to maintain coverage on the private market,” said Senator Allen. “The protections provided in SB 1301 help working families maintain their safety net while helping them address their risk of loss, all the while relieving the FAIR Plan of ever increasing risk exposure.”
Survivors of the L.A. fires and consumers struggling to keep their insurance across the state rallied in support of the bills addressing two insurance crises: lack of access to coverage, and failure to pay the benefits promised. Seventy percent of Los Angeles fire survivors report insurance delays and underpayments impeding their recovery. Nearly one million Californians have been pushed out of their home insurance and onto the low-benefit, high-cost FAIR Plan, or into unregulated surplus lines insurance companies, in just the last few years.
SB 877 (Pérez) helps consumers challenge claim underpayments after a loss by requiring insurers to disclose all original loss estimates and all revisions.
SB 878 (Pérez) strengthens existing laws on claim delays by requiring insurers to respond to claims in writing and on time and penalizes late payment of any undisputed portion of a claim.
SB 1301 (Allen) protects policyholders from unexplained and abrupt insurance nonrenewals by requiring more notice before a loss of coverage, specific disclosure of the reasons a policyholder may be dropped, and an explanation of what home repairs or other changes would allow them to keep their insurance.
“SB 878 is about accountability. Families who have already lost everything should not be forced to fight month after month just to receive the payments we are owed,” Damon Blount, a survivor of the Eaton fire who lost his home and livelihood in the fire, testified in support of the bill.
“SB 877 is simple. It requires insurers to show homeowners the original loss estimates and explain any changes. After losing so much, simple transparency is the least we deserve,” said Rossana Valverde, whose standing home in Pasadena was left full of toxic contamination by the Eaton fire.
“SB 1301 would require insurers to clearly state, in writing, what is needed to maintain coverage and give homeowners a real opportunity and time to comply. If those protections had been in place, we would likely still have our policy today,” testified Hollywood homeowner Magda Molina, who spent $8,000 on repairs only to be told by her insurance company it wasn’t enough to keep their coverage.
Polls show over 90% of Californians support requiring insurance companies to give longer notice before nonrenewal and sufficient time to make improvements to stay insured.
Read the coalition letter from 40 wildfire survivor, consumer, environmental, civil and economic justice, labor, small business, and community organizations in support of the bills.
Learn more at www.fixinsurance.org
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SOURCE Consumer Watchdog
