California Senate Approves Post-Disaster Insurance Claim Reform to Enhance Consumer Protections
The California Senate has passed SB 876, a comprehensive insurance reform bill aimed at improving claims administration and coverage transparency for residential insurance following recent catastrophic events. The bill, approved on May 27, 2026, seeks to address consumer protection issues by expanding requirements related to additional living expenses coverage. It also mandates that insurers assign a primary adjuster for catastrophe-related claims during declared states of emergency, ensuring consistent communication and reducing policyholder complaints about claim handoffs. The bill now moves to the Assembly for further consideration. California Insurance Commissioner Ricardo Lara, a co-sponsor of the bill, emphasized the need for coordinated recovery efforts across federal, state, local, and private sectors to ensure successful recovery and rebuilding efforts. 
