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Legislation that would help wildfire victims get the most out of their home insurance policies is headed to California Governor Gavin Newsom’s desk.
Many people in the state have lost their homes to wildfires, including the massive blazes sparked by lightning that are burning right now.
“It is critically important that people have insurance, and it’s critically important that the insurance coverages do the right thing for consumers,” said State Senator Bill Dodd of Napa.
Sen. Dodd wrote Senate Bill 872, which would, among other things, require insurance companies to pay victims of wildfires and other disasters four months of living expenses upfront, instead of making those payments a month at a time.
Sen. Dodd told KCBS Radio the bill would also give “a homeowner who has totally lost everything, that had paid all their premiums through the incident, two months grace period on making their premium payments.”
The bill passed through the legislature Friday, with bi-partisan support. If Gov. Newsom signs it, it would become effective on Jan. 1, 2021.
“Our insurance commissioner, Ricardo Lara, has already declared he will ask the insurance companies to do it retroactively,” Sen. Dodd said.
Commissioner Lara sponsored the bill.
Dodd said the reforms would help victims for years to come.