CAL.Regulation
California's SB 876 requires home insurers to offer 50% extended replacement cost and doubles emergency claim penalties from 2028
Governor Gavin Newsom signed SB 876 (Chapter 656, Statutes of 2026) on September 27. Starting January 1, 2028, insurers may not issue or renew a residential property policy without offering extended replacement cost coverage of at least 50% above the dwelling limit, must assign a primary point of contact on emergency claims within 30 days, and face civil penalties of up to $10,000 per act, or $20,000 if willful, for unfair practices tied to a state of emergency.
Enrolled text (California Legislative Information) → · CalMatters
Key points
- Insurers must offer extended replacement cost of at least 50% above the dwelling limit and record the applicant's or insured's declination.California Legislative Information
- After a total loss, the building code upgrade payment must cover all costs of completely rebuilding at the original location.California Legislative Information
- For total losses in a declared emergency, loss-of-use coverage lasts at least 24 months, and living expenses continue 15 days past habitability.California Legislative Information
- Insurers must file disaster response plans before April 1, 2028, and report emergency losses within 30 days of a declaration.California Legislative Information
- Newsom vetoed companion claims bills SB 877 and SB 878, saying they codified existing regulations and were unnecessary at this time.CalMatters
Sources2 articles across 2 outlets
California Legislative Information
CalMatters