- New subsection C(2) of Insurance Code § 2051.5 provides “the measure of damages available” to a policyholder to rebuild or replace shall be the amount that would have been recoverable at the original location, but a deduction of the value of the land at the new location cannot be taken.
- Insurance Code § 2060 was amended to include for declared states of emergency, such as wildfires, additional living expense coverage for at least 24 months, with an additional 12 months if the policyholder acting in good faith and with reasonable diligence encounters delays beyond the policyholder’s control, such as permit delays and lack of available contractors.
- Insurance Code § 2060 was also amended to require for declared states of emergency, such as wildfires, that insurers provide at least two weeks of additional living expense coverage when there is an order of civil authority restricting access to the home related to a covered peril.
- New Insurance Code § 2061 requires, for losses due to declared states of emergency, insurers to advance a minimum of four months of Additional Living Expenses. It also prohibits insurers from requiring use of a company-specific form for contents inventories, and for total losses, permits policyholders to group categories of personal property, rather than itemizing each item.
Assembly Bill 2756 affects the underwriting and disclosure process for policies issued on or after July 1, 2021. In particular, it requires a minimum of 10% “building code upgrade coverage” in addition to limits on any residential property insurance policy providing replacement cost valuation. It also revises the mandatory disclosures which must accompany residential property policies as well as the statutes governing renewal offers and nonrenewal notices.
AUTHOR: Andrew B. Downs
Shareholder, San Francisco Office
Direct Dial: 415.352.2716