Legislation

New Homeowner’s Insurance Laws

Four new California laws will be taking effect soon aimed at helping homeowners to find and take advantage of homeowner’s insurance:

  • Under AB 1875, the Department of Insurance will need to provide an online searchable database of insurance agents and brokers, which will be called the California Home Insurance Finder. It is to be updated annually, and the Department of Insurance has until July 1, 2020 to get it working and up to date. Also after this point, insurers will be obligated to inform denied applicants of the Finder.
  • SB 894 provides for extended insurance coverage after a disaster or state of emergency. Currently, insurers are only required to renew insurance once. After July 1, 2019, insurance must be renewable for at least 24 months, or the next two annual renewal periods if that is longer. In a state of emergency, insurance will need to provide for additional living expenses for at least 24 months, possibly extended by unavoidable delays in construction.
  • AB 1797 comes into effect July 1, 2019 and will require property insurance providers to provide an estimate of the cost to replace a property when offering replacement cost coverage, updated every other year at the time of renewal. However, if the owner has increased their coverage within the last 2 years, this requirement doesn’t apply.
  • AB 1772 increases the time limit to collect the first insurance payment to replace destroyed or lost property during a state of emergency from 24 months to 36 months. Though this change is effective immediately, insurance providers have until July 1, 2019 to update their policy forms.

More: http://journal.firsttuesday.us/homeowners-insurance-changes-in-2018/65856/

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