News & Insights

Recent Posts

Covid-19: Assessing the Legal Risk of Infectious Diseases

WSHB Employer Alert: FFCRA and DOL Regulations 4.2.20

Employment Practices Consultation & COVID-19

It’s a No-Win Situation: The Perils Facing Hospitals Due to the Coronavirus

COVID-19 Employer Alert: Summary of the CARES Act

COVID-19: New York Malpractice Law Alert

COVID-19 Employer Alert: Enactment of Families First Coronavirus Response Act (FFCRA)

WSHB Co-Founder Stephen Henning to Announce the Winner of CLM's 2020 Outside Counsel Professional of the Year Award

WSHB Partner Robert Hellner Shares Mediation Tactics at CLM’s 2020 Annual Conference

Risk Transfer and Contractual Indemnification – Who Gets Left Holding the Bag?

New Developments in Challenging Certificates of Merit — Seeking Dismissal for Failure to Concurrently File Certificate with the Original Petition

Seven Habits that Define a Highly Effective Claims Team

Social Media Do's and Don'ts

WSHB Partner Kelly Waters Named to NJBIZ's 2020 Best Fifty Women in Business List

WSHB Names Andrew S. Kessler as Managing Partner of the Firm's Philadelphia Office

WSHB Employment Alert: California Law Banning Arbitration Agreements Temporarily on Hold

Sam McDermott on the Dos and Don’ts of Construction Project Termination

Full Disclosure! Insurer Beware: Colorado’s New Automobile Policy Disclosure Law Has Teeth!

Andrew S. Kessler Named Legal Counsel for Northeast Community Center for Behavioral Health

WSHB Elevates Ten Partners to Defined Equity Status

Eleven WSHB Attorneys Elected Into Partnership

Eighteen Attorneys Elected to WSHB Senior Counsel

Supreme Court Allows Suit Over Website Accessibility

Strategies for Defending Legionella and Mold Claims

Residential Revolution

Time Limit Demand Issues Arrive in North Carolina

Temp Agency Absolved of Liability in Hotly Contested Action

Alternative Fee Agreements and Construction Issues: Oil and Water or Perfect Pairing!?

WSHB's Graham Miller Helps Demystify Construction Claims in the Pacific Northwest

WSHB Partner Janice Michaels Named to The Best Lawyers in America© 2020 List

One Bad Apple: Navigating through Sexual Battery and other Intentional Torts

Leading Construction Litigator Cynthia Tari Joins WSHB's Dallas Office

WSHB’s Philadelphia Partner Secures Summary Judgment in Catastrophic Premises Liability Matter

WSHB Welcomes New Partner Andrew Kessler

New Bill In New York Proposed for Signature by Governor Andrew Cuomo is Set To Make Employers "SWEAT"

Renowned Litigator Jason Williams Joins WSHB's Nevada Office

Litigator Richard Young Joins WSHB's Nevada Office

Published Appellate Opinion Upholding Summary Judgment in Favor of Commercial Tenant Against $3.5M Subrogation Suit

17 WSHB Lawyers Honored as 2019's Rising Stars

Arizona Supreme Court Allows Court of Appeals Decision Expanding Defendants' Ability to Enforce Settlements to Stand

WSHB’s Jason Klein Breaks Down the Good, the Sad and the Funny Sides of Claims

Litigating Sexual Battery and Other Intentional Torts: Navigating the One Bad Apple in Medical Negligence

WSHB Partner Michelle Arbitrio to Moderate Panel on Insurance and Risk Management in the Age of Mass Shootings

Girl on Fire: The Price of Pursuing the Truth in the #MeToo World

Pragmatic Issues on Settlement Versus Trial for Legal Malpractice Cases

A Withering Assault

The Natural Progression of Natural Disasters

Nevada’s Governor Signs Chapter 40 Reform Bill

WA Condo Law Changes Hope to Curtail Frivolous Defect Lawsuits and Stimulate Production

WSHB Co-Founder Stephen Henning Steps Into the Spotlight at this Year's West Coast Casualty Seminar

Professional Liability Expert Weighs In On Protecting Your Practice From Opioid Doc Arrest Fallout

Penalties, Punitives, and Granny Cams: The Escalating Lure of Elder Abuse Litigation

Are Structured Settlements Still Relevant

Game Changing Trends Affecting Construction

He's Not My Guy: The Joint-Employer Doctrine

WSHB Case Update: DOL Proposes Increase to Minimum Salary Threshold

WSHB and DWF Announce Exclusive Association

Leaders in an Emerging Nationwide Trend: Orange County Courts to Pilot New Electronic Evidence Portal

Jury Returns Defense Verdict in Habitability Case

Florida Court Rules Contractor Waived Right to Arbitration

Illinois Supreme Court Addresses Loss of Chance & Informed Consent Jury Instructions in Medical Malpractice Suit

Update: Expanded Protections in the California Insurance Code Amidst Wildfire Property Loss in California

October 18, 2021

Wildfire season in California is not yet over. This update on recent California legislative reforms provides practical information for insurers offering residential insurance in California, in light of the current severe drought, anticipated La Nina weather pattern this winter and what is proving to be another season of devastating wildfires. California Senate Bill 872 is a significant piece of consumer-friendly legislation that has been incorporated into the California Insurance Code. It has expanded protections for insureds following loss of a primary residence caused by catastrophic events as follows.

California Senate Bill 872

Effective January 1, 2021, Senate Bill 872 made many previously voluntary claims-handling procedures mandatory, in the event of a covered loss relating to a state of emergency:

1. Mandatory 4-month Advance Payment of ALE for Total Losses
California Insurance Code § 2061(a)(1) now provides that if an insured has made a claim for additional living expenses related to a total loss, an insurer must, upon request by an insured, render an advance payment of no less than four months of living expenses. It is worth noting that when wildfires occurs in an area of California, the cost for comparable rental values in the surrounding areas greatly increase due to the demand.

2. Company-Specific Inventory Form Not Necessary for Contents Claims
California Insurance Code § 2061(a)(2) now provides that if an insured has made a claim for contents related to a total loss of a primary residence, an insurer cannot require that the insured use a company-specific inventory form if the insured can provide an inventory form that contains substantially the same information. However, this does not limit the authority of an insurer to seek additional reasonable information. With this provision, insureds will now be able to use their own forms for inventory, which may lead to additional time for the claims-handling and adjusting process for catastrophic claims.

3. Groupings of Categories of Personal Property Must be Accepted
California Insurance Code § 2061(a)(3) now provides that if an insured has made a claim for contents related to a total loss of a primary residence, an insurer must accept an inventory that includes groupings of categories of personal property, including but not limited to items such as clothing, shoes, books, food items, and electronics. With this provision, insureds no longer have to give individual information for items, which again could lead to lack of specificity and valuation for each item in the grouping.

4. 60-Day Policy Premium Grace Period
Section 2062 was added to the California Insurance Code providing that an insurer must offer a 60-day grace period for payment of premiums for residential property insurance policies covering a property located within the affected area and for a period of 60 days after the emergency. Understanding and knowing about this grace period is important, particularly in order to prevent potential issues with accidental cancellations or non-renewals which may occur if unaware of this new Code section.

Being aware of these new mandatory claims-handling practices and assisting insureds with grace periods for policy premiums will help develop strong relationships with insureds and good will with your clients.



Privacy Policy      |      Site Map

© 2021 Wood Smith Henning & Berman LLP

Subscribe to our mailing list

* indicates required