Calif. Senate Approves Post-Disaster Insurance Bills

The California Senate has approved two bills designed to ease the process of rebuilding for victims of natural disasters in the state. Senate Bills 2 and 518 share a provision requiring insurance companies to pay the living expenses of victims of future disasters for up to 24 months while they rebuild their homes. Additionally, SB 518 requires insurers to provide homeowners with a copy of their policy within 30 days of a request, and tightens regulations governing the activities of insurance adjusters. SB 2 initially had a section that sought to remove a requirement to compile a list of personal items destroyed to make personal property claims less cumbersome. However, insurance industry representatives opposed the section, saying it encouraged fraud and might overpay policyholders who had recently moved into a home. That provision was removed from the bill, which now heads to the governor for approval. The bills were written in response to complaints from victims of the 2003 Cedar and Paradise fires, but reached a higher profile in the wake of Hurricane Katrina.