California Insurance Commissioner Dave Jones sponsored SB 894, AB 1772, AB 1800, AB 1875 and AB 2594. Governor Jerry Brown has signed these bills, and some take effect immediately.

For the provisions of the bills to be effective, the loss must be from a declared disaster. The provisions of the bills help homeowners or business owners who maybe uninsured, while also broadening the flexibility in the way coverage is paid, which allows for primary dwelling coverages to be increased. Additional living expenses are to be increased from two years to three years. AB 1800 allows full extended replacement cost benefit regardless of if home is rebuilt same location, a new location, or if the consumer purchases an existing home.

 As an independent agent, it's hard not to welcome these changes that may help a client in a future disaster. Having relationships with insurance companies, I know costs will be adjusted in actuary risk models. It could even be argued that responsible consumers that have adequately insured their homes or businesses will end up bearing the cost of underinsured consumers.

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