Three Bills, One Goal:
Reform California’s Insurance System
So families can buy coverage, and get paid what we’re owed
California families are facing two insurance crises.
Drawing on nearly 1,000 insurance accounts from Los Angeles fire survivors, the Every Fire Survivor’s Network worked with Consumer Watchdog and state lawmakers to identify two interlocking crises facing every Californian.
Crisis #1. We cannot reliably buy or maintain homeowners insurance.
Insurance availability has tightened across the state. Since 2019, FAIR Plan enrollment has surged fivefold, transforming a last-resort safety net into a primary insurer for hundreds of thousands of Californians.
Crisis #2. Even if we have coverage, we cannot reliably access the benefits we paid for.
A staggering 70% of insured Los Angeles fire survivors are struggling to access the benefits we already paid for in full. (Department of Angels research) Every Californian who pays premiums expecting protection when disaster strikes is at risk.
To address these crises, the Every Fire Survivor’s Network and Consumer Watchdog are co-sponsoring a bipartisan package of three targeted reforms.
Together, these bills restore what insurance is supposed to be:
A stable market where coverage is available.
And claims are paid fully and on time.
The Crisis of Unavailability: We cannot reliably buy or maintain insurance
Californians are investing tens of thousands of dollars in fire safety upgrades. They are clearing brush. Installing vents. Hardening roofs. Doing everything the state asks.
And still being denied coverage.
Insurance availability now directly influences whether families can rebuild, secure mortgages, sell homes and stabilize neighborhood housing markets.
SB 1301 (Allen):
Nonrenewal Guardrails to Preserve Coverage Act
Policyholders are receiving sudden nonrenewal notices with no documentation and no clear path to fix the issue.
SB 1301 restores basic fairness.
• Requires six months advance notice
• Requires specific, documented reasons and a clear opportunity to cure
• Prohibits non-renewals for inquiring about a claim or filing claims within deductible
You should not lose coverage for asking questions.
The Crisis of Unaccountability:
Even if we have coverage, we cannot reliably get the benefits we paid for.
After the Eaton and Palisades fires, survivors discovered a second shock.
Delays. Denials. Underpayments.
When insurers slash loss estimates behind closed doors, underpayments follow.
And when payments stall, recovery stalls.
Without the insurance benefits families are owed, the Los Angeles recovery will be reserved for those with enough pre-fire wealth to rebuild on their own.
SB 877 (Perez):
Fair Claims Practices and Transparency Act
After disasters, insurers can revise loss estimates internally and present edited numbers as final without disclosing what changed.
A 60 Minutes investigation showed how this practice became rampant in Florida, resulting in widespread underpayment to disaster survivors. In response, Florida changed its law to require insurers to disclose the original loss estimate and any revisions to policyholders.
Adjusters working the Los Angeles fires say the same practice is common here because California does not yet require this transparency.
SB 877 is modeled after the Florida law:
• Requires disclosure of original and revised estimates
• Allows policyholders to verify how their loss was calculated
If the numbers change, policyholders deserve to know.
Read the EFSN/Consumer Watchdog sponsor letter on how SB 877 increases claims transparency.
SB 878 (Perez):
Insurance Payment Accountability Act
California law already requires insurers to respond to and pay claims within strict timelines. Until now, missing those deadlines has carried little consequence, giving insurers a powerful financial incentive to illegally delay and pocket the interest on money that should be yours.
SB 878 flips that: any undisputed payment not made within 30 days begins accruing interest owed to the policyholder, at a 10% penalty rate.
The bill also requires insurers to respond to claims in writing, clearly identify every disputed item, and specify exactly what is needed to resolve each one. After a declared disaster, insurers must pay the actual cash value of a total loss within 30 days and release replacement cost funds as soon as a contract is signed.
For survivors, SB 878 means every delay comes with a cost to the insurer and interest accruing to you.
Read the EFSN/Consumer Watchdog sponsor letter on how SB 878 enforces payment deadlines.
Ready to support insurance reform?
Families across California are being denied coverage, nonrenewed without warning, and underpaid after disasters.
Since the January 2025 fires, sustained coverage by news organizations including the Los Angeles Times, The New York Times, The Wall Street Journal and the San Francisco Chronicle has examined insurer market withdrawals, rising premiums, growing dependence on the FAIR Plan and systemic claims underpayments.
For survivors, this determines whether rebuilding happens at all. Department of Angels research shows that 70% of insured Eaton and Palisades survivors report delays or underpayments blocking recovery.
What’s at Stake for Every Californian
The history is sobering. A prior Los Angeles Times analysis found that only 38% of families who lost homes in major California wildfires between 2017 and 2020 had rebuilt by 2025. The strongest predictor of rebuilding was whether insurers paid claims fully and on time.
When insurance fails, recovery fails.
This is not confined to Los Angeles. Market withdrawals, weak enforcement, and escalating premiums expose every Californian to the same instability.
These reforms are designed to restore a functioning insurance system statewide.
Without reform, no one in California is protected.
Hear From Senator Sasha Renée Pérez
Senator Sasha Renée Pérez introduced SB 877 and SB 878 after listening directly to fire survivors who did everything right, and still could not access the benefits they paid for.
At our recent town hall, she explained why accountability and transparency are necessary to unblock recovery.
“These bills are designed to remove the incentives that reward delay and secrecy, and to restore basic accountability to the claims process.”
“Survivors deserve a system that works when they need it most.”
Attendees described the town hall as clear, substantive, and focused on real solutions.
Watch the Senator Pérez town hall:
Organizational Endorsements
This campaign is backed by organizations across California who stand with survivors and believe insurance should work when it matters most.
Altadena CoLab
American Policyholder Association
Americans for Financial Reform
Ballona Wetlands Institute
Bay Area-System Change not Climate Change
Bethlehem Church of Christ
California Nurses Association
Center for Biological Diversity
Center for Community Action and Environmental Justice (CCAEJ)
Climate Defenders
Climate Hawks Vote
Coalition for a Fire Safe Recovery
Consumer Attorneys of California
Consumer Federation of America
Consumer Protection Policy Center
Consumer Watchdog
Courage California
Dave Jones, Former California Insurance Commissioner
DENA RISE UP
Defend Ballona Wetlands
Eaton Fire Renters Coalition
Eaton Fire Residents United
Every Fire Survivor’s Network
Extreme Weather Survivors
Food & Water Watch
Green America
Jewish Federation of the Greater San Gabriel and Pomona Valleys
Leap of Faith Family to Family Support
My Tribe Rise
Pasadenans Organizing Progress
Public Citizen
Rise Economy
SoCal 350 Climate Action
Sunflower Alliance
United Policyholders
Utility Wildfires Survivors Coalition
West Berkeley Alliance for Clean Air and Safe Jobs
Xtreme Athletics Org
350 Conejo / San Fernando Valley
Support insurance reform. Add your name.
We are collecting individual signatures and organizational endorsements to show lawmakers that Californians expect a stable, transparent, and accountable insurance system. We will keep you informed as this campaign grows.
Organizational Endorsement
Use the organizational form here.
Individuals
Use the below form.
Real Families, Real Crisis
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