Due to the extensive loss and damage that wildfires have caused to California insureds in the last several years, the legislature has continued to pass changes to the law that benefit policyholders. We are only a little more than a quarter through 2020 and the legislature continues to focus on expanding policyholders’ rights. Continue Reading California Legislature Introduces Even More Policyholder Friendly Legislation and Regulations

Wildfires have ravaged California the last several years. In addition to the devastation caused, the wildfires have also brought unfair property insurance terms and insurance carriers’ claim practices to light. Fortunately for California policyholders, the legislature has addressed some of these issues, which we have featured in prior blog posts. The California Assembly has already, in 2020, introduced some new legislation that will be friendly to policyholders. It is contained in Assembly Bill No. 182 and is summarized as follows: Continue Reading California Assembly Introduces More Policyholder Friendly Legislation

In 2017 and 2018, California experienced devastating wildfires, during which thousands of structures, homes, and businesses were destroyed. California insurers scrambled to adjust the thousands of claims but it was quickly recognized that they were not prepared to timely handle losses due to a large-scale natural disaster. The California legislature responded, enacting several amendments to the law extending the time policyholders had to collect additional living expenses and replacement costs. Continue Reading Has the Statute of Limitations Passed To File A Lawsuit On My California Wildfire Claim?

California’s Senate Bill 2401 is making its way through the legislature and will hopefully bring some important changes to the way insurance companies train their out of state adjusters who handle California based policyholder’s claims. The bill, also known as the Insurance Adjuster Act of 2019, was created by Senator Bill Dodd to eliminate confusion and delays caused by out-of-state or unaware adjusters. Continue Reading California’s Insurance Adjuster Act of 2019 Is Coming

The string of natural disasters that struck California in 2017 and 2018 resulted in new legislation expanding the rights of California policyholders. The California legislature has drafted and introduced new legislation that would continue to expand policyholders’ rights. Continue Reading Pending California Property Insurance Legislation – A Continued Expansion of Insured’s Rights

The California Insurance Code mandates if a property insurance policy requires actual cash value payment, the payment must be based on the property’s depreciation for two types of claims: (1) a partial loss to a structure, i.e., a home or building and (2) damaged contents, i.e., personal property or business personal property.1 Fortunately, there is guidance on how depreciation is applied. Cal. Ins. Code § 2051 states actual cash value is the amount it would cost the insured to repair, rebuild, or replace the damaged property less a fair and reasonable deduction for physical depreciation based upon the property’s condition at the time of the injury or the policy limit, whichever is less. Continue Reading Applying Depreciation in California – Understanding the Guidelines

Are California homeowners entitled to collect actual cash value (“ACV”) or replacement cost values (“RCV”) for property claims? It depends on what type of policy you have and whether you suffered a total or partial loss of your property. What’s more, in a few weeks, the California Assembly may vote to change existing law. To understand what homeowners are entitled to, we must first determine whether the policyholder has purchased an RCV or ACV policy and to analyze impact of depreciation. Continue Reading Potential Changes to California’s Insurance Code Section 2051 Impacts Total loss Valuation on ACV Policies

California residents were not spared from disaster in 2018. Instead, devastating wildfires continued, which included the biggest and most devastating wildfires to ever ravage California. The continued disasters were more frequent and begun much earlier during California’s prolonged dry period. The number and size of the wildfires along with insurance carriers’ claim handling have brought insurance issues to the legislature and governor’s attention. This has resulted in new laws benefitting policyholders. Some of the important legislation enacted into law in California in 2018 is summarized below. Continue Reading Summary of California Property Insurance Legislation Enacted in 2018

Last month, California passed legislation that requires residential property insurers to take specific measures to review the estimated cost of rebuilding or repairing structures insured under residential property insurance policies. Assembly Bill 1797 added section 10103.4 to California’s Insurance Code. With certain, limited exceptions, under the new statute, residential property insurers must, at least biennially, at the time of renewal of a policy, offer to provide the insured an updated estimate of the cost to rebuild or replace the insured structures, or offer updated coverage limits based on an inflation factor that reflects the cost of construction in the policyholder’s geographic area. Continue Reading California Passes Law Requiring Insurance Companies Take Specific Measures To Periodically Review The Estimated Replacement Cost Of Structures Insured Under Residential Property Insurance Policies

More states across the country are implementing legislation allowing for the legal use of cannabis. Currently 23 States and the District of Columbia allow for medical use with four of the states and D.C. also allowing recreational use. The conflicts between state and federal law have left businesses uninsured and often without access to bank accounts. Continue Reading California Department of Insurance Has Approved the State’s First Cannabis Business Owners Policy