CA AB2436

Requires open policies providing replacement cost coverage issued or renewed on or after July 1, 2021 to include building code upgrade coverage of at least 10% of dwelling coverage limits as additional coverage.

Building code upgrade coverage must be based on increased costs associated with building ordinances and laws in effect at time of loss or rebuilding.

Requires residential property insurance policies providing replacement cost coverage to disclose building code upgrade coverage information on the declarations page in at least 10-point type.

Requires policies not providing building code upgrade coverage to include a statement on the declarations page stating "THIS POLICY DOES NOT INCLUDE BUILDING CODE UPGRADE COVERAGE."

Amends the California Residential Insurance Disclosure form to clarify actual cash value coverage applies only to components normally subject to repair and replacement during a structure's useful life.