CA SB872

Extends the time limit for collecting full replacement cost from 12 months to 36 months for losses relating to a declared state of emergency, with additional 6-month extensions available for good cause.

Prohibits insurers from limiting or denying payment for additional living expenses if an insured home is rendered uninhabitable by a covered peril during a state of emergency, effective July 1, 2021.

Requires insurers to provide advance payments of at least 4 months of living expenses for total loss claims and to accept inventory of contents in any reasonable form (including grouped categories) for claims arising on or after January 1, 2021.

Allows policyholders to rebuild or replace their home at a new location using the replacement cost that would have applied at the original location, without deductions for land value at the new location.

Requires insurers to offer a 60-day grace period for premium payments on residential property insurance policies in areas affected by a declared state of emergency, with reinstatement of canceled policies upon timely payment.