Commissioner Lara urges insurance companies to provide full contents coverage without detailed inventory requirements for wildfire survivors
News: 2025 Press Release
LOS ANGELES — Insurance Commissioner Ricardo Lara issued a Notice to all residential property insurance companies in California, calling for swift action to aid wildfire survivors impacted by recent fires in Southern California, including the Palisades and Eaton fires. Following the 2018 wildfires, laws sponsored by Commissioner Lara entitle policyholders who experience a total loss to advance payments on their personal property claims. To facilitate further recovery from these devastating losses, Commissioner Lara is encouraging insurance companies to exceed current legal obligations by providing 100 percent of contents coverage limits without the need for policyholders to submit a detailed inventory of their personal property.
“It is inhumane to require wildfire survivors who have lost everything to list every item of personal property in order to receive the full replacement cost under their policies — they need to focus on the larger task of rebuilding their lives,” said Commissioner Lara. “I commend the insurance companies that prioritize their policyholders in the aftermath of these fires. Now is the time for all other insurers, including the California FAIR Plan, to step up and do the right thing for their customers.”
The Department acknowledges that some insurers have gone beyond existing legal requirements, making substantial efforts to support policyholders by providing 75 percent, 80 percent, or even 100 percent of contents limits without requiring an inventory. Policyholders can still recover the full value of their destroyed personal property, up to policy limits, by completing a full inventory later on.
The Commissioner’s Notice requests that insurance companies respond to the Department by February 28, 2025, regarding their compliance with this request. This Notice builds on the Commissioner’s Bulletin issued on January 23, 2025, which reminded insurance companies of important consumer protections under existing law that mandate certain advance payments once a state of emergency is declared and a property is deemed a total loss.
Background:
Current law requires insurance companies to provide advance funds for replacing personal property or contents, amounting to no less than 30 percent of the policy’s dwelling limit, up to $250,000, without necessitating an itemized claim from the policyholder once a state of emergency has been declared and a property is identified as a total loss. Insurers are required to automatically inform policyholders of this option upfront. After receiving the advance payment for contents, policyholders can recover the full value of their destroyed personal property, up to their contents policy limits, by meeting the necessary documentation requirements.
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Media Note:
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
