News: 2010 Press Release

Insurance Commissioner Steve Poizner commended the Legislature and Governor Schwarzenegger today for making much needed changes to consumer disclosures about homeowners insurance. The Governor signed a reform bill, AB 2022 (Gaines), which improves the outdated California Residential Property Disclosure Form, to make it more accurate, and far easier for policyholders to read.

"Existing disclosures are nearly two decades old, and reflect a market that has changed dramatically," said Commissioner Poizner. "AB 2022 will provide consumers with clearer information to help them understand the choices they have when purchasing insurance for their home. My thanks to Assemblyman Ted Gaines, consumer groups and insurers, who worked tirelessly with my office to craft this bill. It is an enormous improvement over existing law."

AB 2022 is part of a larger project Commissioner Poizner has spearheaded to address the growing problem of homeowners who find, after major wildfires, that they do not have adequate insurance coverage. The bill mandates specific language that must be provided to anyone shopping for homeowners insurance, laying out a checklist of the major variables in insurance policies. In addition to this disclosure, the Department of Insurance is also drafting regulations that will help provide more accurate and reliable estimates of what it might cost to completely rebuild a destroyed home. Currently, such estimates are unregulated, and may lead homeowners to believe they would need less coverage than they truly need in the event of a disaster.

"When I took office, I promised I would address the problem of underinsurance, and I am going to fulfill that promise," said Poizner. "Consumers have many difficult choices to make when buying homeowners insurance, but they have to know what those choices are, and have reliable information to base their decision on. AB 2022 and my new regulations will give consumers greater confidence on both of those fronts."