CA SB876

Requires insurers to pay actual cash value for total loss of insured structures within 30 calendar days, with interest accruing on late payments, and mandates undisputed replacement cost payments within 30 days of the insured signing a rebuild contract or entering escrow on a replacement home

Increases building code upgrade coverage from 10% to 20% of dwelling policy limits for losses related to a state of emergency, and requires building code upgrade costs to include all costs that would have been incurred if rebuilding at the original location

Mandates insurers offer extended replacement cost coverage of at least 50% above policy limits and guaranteed replacement cost coverage for primary dwellings; for state of emergency losses, policy limits automatically increase by 50% in addition to any extended coverage

Requires insurers to pay 100% of personal property policy limits (up from 60%, capped at $350,000) within 30 days for total losses during a state of emergency without requiring itemized claims, and doubles additional living expense policy limits during emergencies

Requires residential property insurers to submit disaster response plans to the Department of Insurance by April 1, 2027, report losses and claims data within 15 days of a declared emergency, and doubles civil penalties for unfair practices related to emergencies (up to $20,000 per willful act)