Insurance Coverage for Fire-Safe Homes Does Not Advance
SACRAMENTO, Calif., April 23, 2026 /PRNewswire/ — Three bills to help families keep their home insurance coverage and get the insurance benefits they pay for after a disaster, passed out of the state Senate Insurance Committee today. A fourth bill requiring insurance companies to offer coverage to fire-safe homes fell one vote short.
Dozens of wildfire survivors and consumers struggling to keep their insurance and recover from the Eaton and Pacific Palisades fires traveled to Sacramento to support the bills cosponsored by Consumer Watchdog and the Every Fire Survivor’s Network and authored by Senators Sasha Renée Pérez and Ben Allen.
The families shared their testimony at a press event that can be watched here.
The bills reflect the fight of disaster survivors to get their claims paid and support all consumers struggling to stay insured. Seventy percent of Los Angeles fire survivors report that insurance delays and underpayments are impeding their recovery. Nearly one million Californians have been pushed onto the low-benefit, high-cost FAIR Plan, or into unregulated surplus lines insurance companies, in just the last few years.
“SB 1076 would have created a first-of-its-kind pilot program to reduce insurance risk and guarantee insurance coverage for homeowners who made their properties fire-safe. I’m disappointed this bill died in committee. Fire survivors deserved better. This legislation mattered,” said Senator Sasha Renée Pérez (D-Pasadena), author of SB 1076.
“Our communities have had a front row seat to the dysfunction of the insurance market over the last year,” said Senator Allen (D-Pacific Palisades). “Too many disaster survivors have had the rug pulled out from under them at the very moment they need the safety net they had been paying for. It’s clear we need stronger protections that help policyholders maintain their coverage and ensure they receive what they are due when disaster strikes.”
“At the Every Fire Survivor’s Network, we brought more than 1,300 firsthand accounts of insurer misconduct to Senator Sasha Renée Pérez. She turned those stories into legislation that cracks down on delays and underpayments and makes insurance available again. Every Californian will be safer because of these bills,” said Joy Chen, Executive Director, Every Fire Survivor’s Network
“Passage of these bills means real progress to hold insurance companies accountable for claims delays, underpayments, and unfairly dropping policies. We’re disappointed that some Senators sided with the industry to prevent long overdue legislation to require insurance companies recognize homeowners’ efforts to make their homes fire-safe did not move forward. Thank you to the Senators who voted for the bill and recognize that the way to keep Californians insured is by reducing risk for everyone,” said Carmen Balber, executive director, Consumer Watchdog.
Senators Padilla, Becker and Menjivar voted in support of SB 1076 to require insurers to cover homes that meet state wildfire safety standards. This is the first time such legislation, which has been raised by numerous lawmakers as far back as 2019, received a hearing in the legislature.
Senator Padilla expressed his frustration that the insurance industry insists that they need homes to be hardened in order to insure them but refuses to even continue discussing a bill to do so. Senator Pérez said constituents deserve assurance that they will be able to insure their homes when they rebuild safer from the Eaton fire.
Senator Laura Richardson made remarks about how in a capitalist country we don’t make industries sell products and refused to vote for the bill, joining Senator Susan Rubio in abstaining. Consumer Watchdog pointed out that auto insurance companies are required to sell coverage to good drivers in California and health insurance must be sold to all comers in Obamacare exchanges.
SB 877, SB 878, and SB 1301 passed out of the committee and head to the Senate Appropriations Committee.
SB 877, authored by Senator Sasha Renée Pérez, helps consumers challenge claim underpayments by requiring insurers to disclose all original loss estimates and all revisions.
SB 878, authored by Senator Sasha Renée Pérez, strengthens existing laws on claim delays by requiring insurers to respond to claims in writing and on time.
SB 1301, authored by Senator Ben Allen, protects policyholders from unexplained and abrupt nonrenewals with greater disclosure and more time to repair any problem to prevent losing coverage.
Polls show over 90% of Californians support requiring insurance companies to cover fire-safe homes, longer notice before nonrenewal, and sufficient time to make improvements to stay insured.
Read the Consumer Watchdog and Every Fire Survivor’s Network letters in support of the bills.
SB 1076 – Consumer Watchdog
SB 1076 – Every Fire Survivor’s Network
40 wildfire survivor, consumer, environmental, civil and economic justice, labor, small business, and community organizations also joined in support.
Learn more about all four bills at www.fixinsurance.org
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SOURCE Consumer Watchdog
