NORTHERN CALIFORNIA – Two North Coast senators have written a bill to address the kinds of disaster insurance claims that their constituents have faced in recent wildland fires.
State Sen. Bill Dodd, D-Napa wrote Senate Bill 872 along with Sen. Mike McGuire, D-Healdsburg, who represents Lake County in the Senate.
On Tuesday, Dodd formally introduced the legislation, meant to streamline residential insurance claims for victims of disasters such as wildfires.
“When someone has lost their home or suffered serious damage in a disaster, they shouldn’t have to jump through hoops to get coverage they are entitled to,” Sen. Dodd said. “Insurance companies must act swiftly to advance living expenses for temporary housing and other costs and they shouldn’t bury homeowners in exhaustive inventory forms. People who pay their premiums deserve to be made whole without unnecessary delay.”
Senate Bill 872, sponsored by Insurance Commissioner Ricardo Lara, expands the definition of additional living expenses that must be paid to homeowners for losses incurred in a state of emergency.
Upon submission of a claim, it requires an advance payment of no less than four months for costs such as housing, furniture rental and transportation.
Also, it requires an advance payment of no less than 25 percent of a policy limit for lost contents without submission of an inventory form.
The bill requires insurers to give homeowners a 60-day grace period for payment of residential premiums after an emergency.
Insurance companies also will be barred from deducting the land value from payouts for those who build on new lots.
“When a disaster occurs, residents need immediate help, not red tape and unnecessary paperwork that adds to their problems,” Insurance Commissioner Ricardo Lara said. “I am proud to sponsor this crucial legislation, enforcing actions that I have urged insurers to take after wildfires to protect policyholders. This proposal will help ensure residents have all the resources and time available to them to help ease the financial and emotional toll of a disaster.”
Dodd, who formerly represented Lake County in the State Assembly, now represents California’s Third Senate District, which includes all or portions of Solano, Napa, Sonoma, Yolo, Sacramento and Contra Costa counties.
North Coast senators introduce disaster insurance claims bill
- Lake County News reports
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