A new law proposed by California’s insurance commissioner would force insurers to pay 100 percent of the coverage for belongings inside destroyed homes, eliminating the need for homeowners to list every object lost. The bill aims to reduce the emotional toll on families struggling with the process.
California is set to become the only state in the US requiring 100 percent insurance payouts without itemization. Similar legislation in Oregon and Colorado requires insurers to pay 70-65 percent of coverage limits, according to United Policyholders.
The proposed law applies only to homes destroyed in a disaster and calls on insurance companies to pay total contents coverage without an inventory. California Insurance Commissioner Ricardo Lara said the idea is to give homeowners a break during their “incredible pain and vulnerability.”
Consumer advocates say the itemization requirement compounds trauma and delays community rebuilding. Insurers often pay depreciated values for lost items, delaying full payment until replacement costs are proven.
The bill will now move through California’s legislature, where it may be voted on earlier than usual. The proposal is part of a package addressing wildfire mitigation and recovery, including tax credits for homeowners who rebuild with fire-resistant materials.
Source: https://www.nytimes.com/2025/02/14/realestate/la-fire-home-insurance-legislation.html