AB 1852 Summary

• Requires notice of nonrenewal for residential property insurance policies expiring on or after January 1, 2021, to include information about the California Home Insurance Finder, FAIR Plan coverage options, and supplemental insurance availability.

• Mandates insurers provide at least 30% of the dwelling policy limit as payment for contents in total loss claims from state emergencies without requiring an itemized claim, up to a maximum of $250,000.

• Prohibits insurers from limiting additional living expense coverage for state emergency losses if the home is uninhabitable due to authority orders, lack of utilities, smoke damage, or similar conditions.

• Allows policyholders rebuilding at a new location after total loss to recover the full replacement cost amount without deductions for land value at the new location.

• Requires the California FAIR Plan Association to develop and implement a clearinghouse program by July 1, 2021, to help reduce FAIR Plan policies and allow admitted insurers to offer coverage to FAIR Plan policyholders.