Updated January 13, 2026
This guide is for California homeowners, renters, business owners, HOAs, and nonprofits navigating wildfire-related insurance changes.
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The effects of last year’s California wildfires are still being felt by homeowners, businesses, and property managers across the state. When the smoke cleared, delayed claims, coverage uncertainty, rising premiums, and non-renewals revealed real gaps in the way wildfire losses are handled. In response, Insurance Commissioner Ricardo Lara and the California Department of Insurance advanced a series of measures aimed at addressing those shortcomings.
Together, these new laws represent some of the most meaningful consumer protection updates California has seen in decades.
As Los Angeles public insurance adjusters who represent policyholders (and not insurance companies), we’ve reviewed each new California law to help you understand what’s changed, what you need to do, and what we’ll be watching as these regulations roll out across the state.
The big picture: Why these new California insurance laws matter now
California’s insurance framework hasn’t kept pace with wildfire risk, climate-driven losses, or the realities of claim recovery. These new laws address three core problems:
- Getting survivors paid faster
- Keeping coverage in place when communities need it most
- Funding the mitigation work that actually reduces loss severity
For our clients, the practical impact is immediate.
Some of these laws change how claims are paid starting this month. Others create new grant programs and transparency tools that will shape premium discussions and underwriting decisions for years to come.
Let’s break down each law.
- State grants for fire-hardening your home (AB 888)
- How insurers decide your wildfire risk (SB 429)
- Wildfire mitigation insurance discounts (AB 1)
- Faster contents payments after total loss (SB 495)
- Commercial and HOA non-renewal protections (SB 547)
- FAIR Plan claim payment stability (AB 226)
- Administrative insurance rule changes (AB 487)
State grants will pay for fire-hardening your home
The California Safe Homes Act (AB 888):
Grants for fire-safe roofs and “zone zero” mitigation
Zone Zero mitigation (clearing combustibles, upgrading vents, installing ember-resistant materials right against the house) is among the most effective wildfire loss prevention measures you can do. It’s also expensive, and most homeowners who want to do this work haven’t been able to afford it. This grant program changes that equation.
What the law does: AB 888 establishes the California Safe Homes Grant Program within the Department of Insurance to help low- and moderate-income homeowners pay for ember-resistant work in the first five feet around their home (known as “Zone Zero”) and fire-safe roof replacements.
What you need to do: The Department of Insurance has indicated applications may open as early as spring 2026. If you’re a homeowner in a wildfire-prone area, start documenting your current conditions now. Take photos of your roof, eaves, vents, and the five-foot perimeter around your home. If you’re planning mitigation work, get multiple contractor bids and keep all receipts, permits, and product specifications.
Our take: Mitigation work reduces claim severity and supports insurability, but only if it’s documented properly. Treat grant-funded improvements the same way you’d document a claim, with photos, receipts, and permits stored securely offsite. That same documentation is useful in two other ways. It can help you with premium discounts under the Safer from Wildfires program and strengthen future claims if the worst happens.
Are building code upgrades already part of your insurance policy?
Mitigation work funded through the California Safe Homes Act also intersects with existing rebuilding coverage. Residential replacement cost policies issued or renewed on or after July 1, 2026, must include building code upgrade coverage equal to at least 10% of the dwelling limit.
This coverage is additional. Using it does not reduce the main dwelling limit. Code upgrade coverage can help pay for required changes when rebuilding, including updates tied to fire-resistant construction standards. Proper documentation of mitigation work supports grant eligibility, future claims, and insurance recovery during rebuilding.
You’ll finally be able to see how insurers decide your wildfire risk
The California Wildfire Public Model Act (SB 429):
Transparency in risk assessment
Catastrophe models drive premium pricing and coverage availability decisions, but homeowners have never been able to see how their property is being evaluated or challenge assumptions in those models. A transparent public model changes the power dynamic. It gives you data to ask better questions and verify whether mitigation work is being recognized.
What the law does: SB 429 funds the development of the nation’s first publicly available wildfire catastrophe model. Unlike the proprietary “black box” models insurers use to set rates and make underwriting decisions, this public model will be accessible to homeowners, communities, and regulators.
What you need to do: Nothing immediately, but understand that this model will eventually inform conversations about your premium and coverage. When the model launches, use it to assess your property’s wildfire risk score and compare it against the risk factors your insurer cites.
Our take: This is a game-changer for policy reviews and rate disputes. When we represent clients in underwriting appeals or premium challenges, access to a credible public model strengthens our position. We’ll be watching how quickly the model is deployed and whether insurers incorporate its findings into their rating plans. Ask your agent or insurer: what catastrophe model are you using, what risk factors are being applied to my property, and what mitigation evidence will you recognize? Learn about your rights as a California policyholder.
What are your rights when a wildfire risk score is used?
When an insurer uses a wildfire risk score or classification to set premiums, apply surcharges, or make underwriting decisions, policyholders have specific rights. Insurers must provide the score or classification in writing, explain where it falls within the overall risk range, and identify the property characteristics that influenced the result.
Insurers are also required to disclose which mitigation actions could reduce the risk score and how those actions would affect premiums. Policyholders have the right to appeal a wildfire risk score directly, and insurers must acknowledge the appeal and provide a written decision within defined timeframes.
These rights give homeowners and communities a way to question assumptions, correct errors, and confirm that mitigation work is being recognized.
Wildfire mitigation discounts shouldn’t depend on your insurer’s mood
The Insurance and Wildfire Safety Act (AB 1):
Keeping mitigation discounts current
California’s Safer from Wildfires program mandates that insurers provide premium discounts for defensible space, home hardening, and other mitigation actions. But discounts have been inconsistent across carriers, and the regulations haven’t kept pace with innovations in fire-resistant materials or community wildfire planning.
What the law does: AB 1 requires the Department of Insurance to review and update its Safer from Wildfires regulations every five years, starting January 1, 2030. The review will consider new building-hardening measures, community mitigation programs, and advances in wildfire science.
What you need to do: If you’ve completed wildfire mitigation work (roof replacement, vent upgrades, defensible space clearance), make sure your insurer is applying the appropriate discount. Request a copy of your carrier’s mitigation discount schedule and verify that your improvements are reflected in your premium.
Our take: Discounts are real, but not uniform. We’ve seen cases where one insurer credits a Class A roof replacement with a 15% discount while another offers 5% for the same work. Shop your coverage and verify what specific mitigation evidence your carrier requires. And don’t assume compliance equals recognition. You have to document and request the discount. As public adjusters, we can help with this.
Discounts require documentation and follow-up
While California requires insurers to offer wildfire mitigation discounts, those discounts are not automatic. Insurers must identify which mitigation actions qualify under their rating plans, but policyholders are responsible for providing documentation and requesting the discount.
Mitigation records such as permits, invoices, photos, and product specifications support both premium discounts and wildfire risk scoring reviews. Keeping this documentation organized strengthens your position during renewals, underwriting reviews, and appeals related to wildfire risk classifications.
After a total loss, you need money, not paperwork
Eliminate “The List” Act (SB 495):
Faster contents payments for total loss survivors
After a wildfire destroys your home, creating a detailed contents inventory from memory is overwhelming and often leads to under-claiming. Survivors need immediate funds for temporary housing, clothing, and essentials, but the old system forced them to compile “the list” before receiving meaningful contents payments. SB 495 flips that sequence: you get an advance payment quickly, then submit a detailed inventory when you’re ready.
What the law does: SB 495 requires insurers to pay 60% of contents (personal property) coverage limits (capped at $350,000) to wildfire survivors who experience a total loss, without requiring an item-by-item inventory up front. The law also extends the proof of loss deadline to at least 100 days after a declared state of emergency.
What you need to do: If you experience a total loss, request the 60% contents advance immediately. Don’t wait to finish your inventory. Use the 100-day proof of loss window to compile accurate documentation. Work with a public adjuster if you need help reconstructing what was in your home and establishing replacement values.
Our take: This is the single most important change for wildfire survivors. The advance payment gets families stabilized quickly, and the extended deadline creates space to do the inventory work correctly. But here’s the critical piece: the advance isn’t the final payment. You still need to submit a complete contents claim to recover the full value of what you lost. That’s where professional representation matters. We help families avoid under-claiming, coordinate documentation (receipts, photos, credit card statements), and handle insurer follow-up once detailed proof is compiled. Don’t leave money on the table by treating the advance as the full settlement.
What additional protections apply after a total loss?
SB 495 is part of a broader set of protections designed to get money to survivors quickly after a declared emergency. In addition to the 60% contents advance, policyholders are entitled to meaningful help with living expenses and documentation timelines.
If a home is a total loss, insurers must provide an advance payment for additional living expenses equal to at least four months of reasonable costs upon request. Coverage for additional living expenses must last a minimum of 24 months after a declared emergency and may be extended up to 36 months when rebuilding delays are outside the policyholder’s control, such as permit backlogs or contractor shortages.
Policyholders are also allowed to submit grouped contents inventories rather than item-by-item lists for categories like clothing, books, or food, and insurers cannot require the use of company-specific inventory forms. Accepting an advance payment does not close the claim. Additional amounts may still be owed once full documentation is submitted.
Businesses and HOAs shouldn’t lose coverage after a wildfire
The Business Insurance Protection Act (SB 547):
Non-renewal moratorium expanded to commercial policies
Since 2018, California has prohibited insurers from canceling or non-renewing residential property insurance for one year following a declared wildfire emergency in or near a ZIP code. SB 547 applies that same protection to commercial policies, ensuring businesses and community associations don’t lose coverage when they’re most vulnerable.
What the law does: SB 547 extends California’s existing wildfire-related non-renewal moratorium to commercial property insurance, covering businesses, homeowners’ associations (HOAs), condominiums, affordable housing units, and nonprofits.
What you need to do: If you’re a business owner, HOA board member, or nonprofit operator in a wildfire-affected area and you receive a non-renewal notice, verify whether the moratorium applies. Document the date of the notice, review your policy’s coverage territory, and consult with your broker or legal counsel before accepting the cancellation.
Our take: Coverage continuity affects lending, operations, and recovery planning, especially for HOAs and affordable housing providers that serve entire communities. This is a significant protection, but insurers may still non-renew outside the moratorium window or cite exceptions in the law. If you receive a non-renewal notice, act within the first seven days: contact your broker, request clarification on the insurer’s basis for non-renewal, and explore FAIR Plan or alternative market options if the cancellation stands. We work with nonprofit and HOA clients to navigate these transitions and ensure claims remain viable during coverage changes.
The FAIR Plan only helps if it can actually pay claims
The FAIR Plan Stability Act (AB 226):
Liquidity tools for the insurer of last resort
The FAIR Plan covers high-risk properties that can’t obtain coverage in the voluntary market. After a major disaster, the FAIR Plan faces massive claims volume with limited reserves. AB 226 provides additional liquidity tools so the FAIR Plan can pay claims promptly without triggering assessments on member insurers (which would ultimately be passed on to all California policyholders).
What the law does: AB 226 authorizes the California FAIR Plan, the state’s insurer of last resort, to access catastrophe bonds through the California Infrastructure and Economic Development Bank and enter lines of credit or loan agreements with lenders, subject to Insurance Commissioner authorization.
What you need to do: If you’re insured through the FAIR Plan, nothing changes about your policy or claims process. Continue documenting your property conditions, maintaining mitigation work, and filing claims promptly if you experience a loss.
Our take: FAIR Plan policyholders are often already stressed. They’re in high-risk areas, they’ve been non-renewed by voluntary carriers, and they’re paying higher premiums for more limited coverage. Liquidity matters because delays and uncertainty hurt claimants. AB 226 is designed to ensure the FAIR Plan can pay claims promptly after a catastrophic event, rather than facing cash flow constraints that slow down recoveries. We’ll be watching how the Insurance Commissioner uses this authority and whether it translates into faster claim payments. If you’re a FAIR Plan policyholder, understand that claims handling may differ from voluntary market carriers, so adjust your expectations and consider professional representation to navigate the process.
Time and flexibility to rebuild or relocate
Recovery after a wildfire often takes years. California law provides extended timelines to protect policyholders during that process. After a declared emergency, insureds have at least 36 months to collect full replacement cost benefits, starting from the date the first actual cash value payment is made. Six-month extensions must be granted for good cause.
Importantly, insurers cannot deny replacement cost or building code upgrade benefits because the policyholder chooses to rebuild at a different location or purchase an already-built home. Payments may not be reduced based on land value at the new location. The total recovery is capped at what it would have cost to rebuild at the original site, but relocation itself cannot be used as a reason to withhold benefits.
These protections are especially important for FAIR Plan policyholders, who often face longer rebuilding timelines and limited housing options.
The regulatory fine print we track so you don’t have to
Annual Insurance Omnibus (AB 487):
Technical updates that still matter
Technical laws like AB 487 don’t usually grab headlines, but their details affect accountability and administrative efficiency. AB 487 touches adjuster licensing applications, claims handling timelines, and regulatory reporting, all of which influence how quickly disputes get resolved and how transparently the system operates.
What the law does: AB 487 is a cleanup bill that clarifies existing laws, removes outdated code sections, and establishes new administrative processes developed in collaboration with the Department of Insurance and stakeholders. It includes updates to licensing procedures and regulatory timelines.
What you need to do: Nothing directly, but know that your public adjuster is required to stay current on these changes. If you’re hiring representation, verify that your adjuster is properly licensed and up to date on California’s evolving regulatory framework.
Our take: We track even the technical cleanup bills because details affect timelines and accountability. AB 487 isn’t a headline consumer issue, but it’s part of our credibility commitment. Understanding the regulatory environment helps us advocate more effectively and anticipate how insurers and regulators will respond to claims and disputes.
One more you should know about
AB 2493: Wildfire mitigation inspection standards
This law establishes standards for insurer wildfire risk inspections, including inspector qualifications and documentation requirements. If your insurer conducts a wildfire risk inspection of your property, AB 2493 ensures the inspector is properly trained and that you receive clear documentation of findings.
What this means for policyholders across our service area
While these laws are California-specific, the principles behind them (faster claims payments, coverage stability protections, mitigation incentives, and transparency) are relevant everywhere we work. Wildfires don’t respect state boundaries, and regulatory innovations in California often signal where other Western states are headed.
If you’re a policyholder in Arizona, Colorado, Nevada, New Mexico, or our other service areas, expect to see similar legislative discussions in 2026 and beyond. The fundamentals remain the same: document everything, understand your coverage before you need it, and don’t navigate a major claim alone.
The bottom line?
Knowledge is power, but representation is key.
These laws represent real progress for California consumers, but they don’t change the fundamental dynamic of insurance claims:
Insurers have professional adjusters working for them, and you need professional representation working for you.
Whether it’s maximizing a contents claim under SB 495, navigating a FAIR Plan recovery, documenting mitigation work for grant funding and premium discounts, or challenging a non-renewal notice under SB 547, we’re here to ensure you get the full value of your coverage and the full benefit of these new consumer protections.
If you have questions about how these laws affect your property or your coverage, or if you need representation on an active claim, contact us. We’re Los Angeles public insurance adjusters: licensed, bonded, and ready to go to work for you.
Frequently asked questions about California’s new insurance laws (2026)
What new California insurance laws affect wildfire claims in 2026?
Several new laws affect how wildfire claims are paid, how quickly policyholders receive funds, whether insurers can non-renew coverage, and how wildfire risk is evaluated. Key changes include faster contents payments after total losses, expanded non-renewal protections for businesses and HOAs, new mitigation grants, and steps to stabilize the California FAIR Plan.
How does SB 495 change wildfire contents claims after a total loss?
SB 495 requires insurers to issue an advance payment equal to 60% of contents coverage limits (up to a cap) after a total wildfire loss, without requiring a full inventory first. Policyholders also have at least 100 days to submit a complete proof of loss. The advance is not a final settlement, and additional funds may still be owed.
Do I still need to complete a contents inventory if I receive the 60% payment?
Yes. The advance payment provides immediate funds, but recovering the full value of your personal property still requires a detailed inventory. Many policyholders under-claim contents if they stop after the advance. A complete inventory helps ensure the claim reflects everything that was lost.
Can insurers still non-renew business or HOA insurance after a wildfire?
SB 547 extends wildfire-related non-renewal protections to commercial policies, including businesses, HOAs, condominiums, nonprofits, and affordable housing providers. Insurers may still cite limited exceptions, so non-renewal notices should be reviewed carefully rather than accepted at face value.
What is the California FAIR Plan, and how do the new laws affect it?
The California FAIR Plan is the insurer of last resort for properties that cannot obtain coverage in the voluntary market. AB 226 allows the FAIR Plan to access additional financial tools so it can pay claims more reliably after major disasters. Coverage terms do not change, but the law is intended to reduce payment delays after catastrophic losses.
Are wildfire mitigation grants available to homeowners in California?
AB 888 creates a state grant program to help eligible homeowners pay for wildfire mitigation work such as fire-safe roofing and zone zero improvements. Applications are expected to open later. Documentation of current conditions and completed work will be important for both grant eligibility and insurance purposes.
Do wildfire mitigation improvements lower insurance premiums?
California requires insurers to offer mitigation discounts through the Safer from Wildfires program, but discounts vary by carrier. AB 1 requires regular review of these rules to keep them current. Homeowners must document improvements and request the discount; it is not always applied automatically.
How do insurers decide my wildfire risk and premium?
Insurers use catastrophe models to assess wildfire risk, which influences pricing and coverage decisions. SB 429 supports the development of a public wildfire risk model, allowing homeowners and communities to better understand how risk is evaluated and what factors insurers consider.
Do these new insurance laws apply outside California?
The laws discussed apply to California policies. However, similar issues like wildfire risk, claim delays, mitigation incentives, and coverage availability affect many western states. Regulatory changes in California often signal trends that appear elsewhere over time.
When should I contact a public insurance adjuster under these new laws?
You may want help if you experience a wildfire loss, receive a non-renewal notice, struggle with a contents inventory, are insured through the FAIR Plan, or believe mitigation work is not being recognized. Public adjusters represent policyholders and help ensure claims reflect the full scope of damage and coverage.
Does accepting an insurance payment mean my claim is finished?
Not necessarily. Initial or advance payments do not always reflect the full cost of repairs or replacement. Claims can be supplemented when hidden damage is discovered, pricing changes, or documentation expands. Accepting payment does not waive your right to pursue what the policy provides.
If I accept the 60% contents advance after a wildfire, can I still recover more later?
Yes. The 60% contents payment is an advance, not a final settlement. After receiving the advance, you still have the right to submit a full contents inventory and recover additional amounts up to your policy limits if the value of your personal property exceeds the advance payment. Many policyholders mistakenly stop after the initial payment and under-claim. Completing the inventory is required to recover the full value of what was lost.
How long will insurance pay for temporary housing after a wildfire total loss?
After a declared state of emergency, insurance must provide additional living expense coverage for at least 24 months following a total loss. If rebuilding delays are outside your control, such as permit delays or contractor shortages, coverage may be extended up to 36 months. If requested, insurers must also provide an advance payment equal to at least four months of reasonable living expenses to help stabilize housing early in the claim.
How long do I have to collect full replacement cost benefits after a declared emergency?
After a declared emergency, policyholders have at least 36 months from the date the first actual cash value payment is made to collect full replacement cost benefits. Insurers must grant additional six-month extensions for good cause when delays are beyond the policyholder’s control. Insurers cannot shorten this timeline through policy language.
Can I rebuild somewhere else or buy another home and still receive full insurance benefits?
Yes. California law prohibits insurers from denying replacement cost or building code upgrade benefits because a policyholder chooses to rebuild at a different location or purchase an existing home instead of rebuilding on the original site. Insurance payments cannot be reduced based on land value at the new location. The total recovery is capped at what rebuilding at the original location would have cost, but relocation itself cannot be used to withhold benefits.
What is building code upgrade coverage, and how much does California law require insurers to provide?
Building code upgrade coverage pays for required changes when rebuilding to meet current construction codes. Residential replacement cost policies issued or renewed on or after July 1, 2026, must include building code upgrade coverage equal to at least 10% of the dwelling limit. This coverage is additional and does not reduce the main dwelling coverage limit.
Am I entitled to see and appeal my insurer’s wildfire risk score?
Yes. If an insurer uses a wildfire risk score or classification to set premiums or make underwriting decisions, you have the right to receive that score in writing along with an explanation of how it was determined. Insurers must identify which property characteristics affected the score and what mitigation actions could reduce it. Policyholders also have the right to appeal the score, and insurers must respond within defined timelines.
Do FAIR Plan policyholders have the same rebuilding and payment timelines as other insurers?
Yes. FAIR Plan policyholders are entitled to the same statutory protections that apply to other residential property insurance policies after a declared emergency. This includes extended timelines to collect replacement cost benefits, additional living expense coverage, contents advance payment options, and rebuilding or relocation protections. While FAIR Plan coverage differs in scope, claim timing protections still apply.
Have more questions?
Please contact us. We’re happy to help.
This article is provided for informational purposes and does not constitute legal or financial advice. Insurance laws and regulations change frequently; consult with a licensed professional regarding your specific situation. Our firm is a licensed public insurance adjuster serving residential and commercial clients across Arizona, California, Colorado, Kentucky, Minnesota, Montana, Nevada, New Mexico, Oklahoma, Texas, and Utah.
