SB 894 and Related Wildfire Legislation

May 23, 2019

Author: Shannon L. Santos

In response to the considerable losses caused by the 2017 California wildfires, the California Legislature enacted and amended several statutes to afford insureds the resources to rebuild their homes, especially given the reality of construction delays and price gouging of individuals in disaster locations. These revisions to the California Insurance Code impact underwriting for all carriers writing in California on issues related to additional living expenses, extended replacement cost coverage and the requirement to provide estimates as to the replacement costs of the residence at the time of an offer of renewal.

Wilson Elser has prepared an analysis of the impact of these statutory revisions and the issues that carriers will want to keep in mind when underwriting and responding to claims related to any California wildfires.

Click here to read the full analysis.

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