Senate Bill 876 is sitting on Governor Newsom’s desk, and it came from Chula Vista. State Sen. Steve Padilla’s bill would require insurers to offer at least 50% extended replacement cost on the dwelling and on additional living expenses — rent and food if the house is unlivable — and to give the insured a rebuild estimate. It also tells the California FAIR Plan to do the same. Newsom has until September 30 to sign it.
That is the underinsurance problem from the 2025 Los Angeles fires in statute form. A dwelling limit that looked fine at bind is not enough when lumber, labor, and code upgrades show up after a loss. Many carriers already sell extended replacement in some amount. Padilla’s bill would set a floor and close the exceptions, including the residual market. The same package would double CDI fines when an insurer breaks the law during a state of emergency, and it would send restitution to the policyholder, not just a check to the state.
Three other bills are on the same pile. SB 878 would make a carrier pay actual cash value within 30 days on a total loss or start owing interest. SB 877 would give you the estimate documents used to price the claim within 15 days of asking. SB 1301 would stretch nonrenewal notice from 75 days to 90, and 120 days if the carrier says you can fix the reason they are dropping you. Utility-liability reform died on the last day of session. These did not.
If you are on a FAIR Plan or an HO-3 in San Diego County, the work does not wait for a signature. Check whether you have extended replacement, and whether the dwelling limit still rebuilds the house. If this is on your renewal, call the office at (619) 420-8600 or start a quote. We will tell you what the market will actually write.
Sources: San Francisco Chronicle, September 9, 2026.