CA SB894

Requires insurers to offer renewal coverage for at least two annual renewal periods or 24 months (whichever is greater) following a total loss from a disaster, provided the loss was not due to insured negligence and no subsequent losses have occurred.

Prohibits insurers from canceling or refusing to renew residential property insurance policies for one year after a wildfire emergency declaration solely based on the property's location within or adjacent to the fire perimeter.

Extends additional living expense coverage from 24 months to up to 36 months total if an insured encounters reconstruction delays beyond their control, such as permit delays, material shortages, or contractor unavailability.

Permits insureds to combine policy limits for primary dwelling and other structures coverage to rebuild or replace a damaged primary dwelling when those limits are insufficient, with full replacement cost value applied.

Eliminates restrictions on replacement cost payments when an insured chooses to rebuild at a different location following a total loss, though indemnity cannot exceed the cost to rebuild at the original location.