Residential Insurance Home-Renters

Residential Insurance: Homeowners and Renters 24 The 2003 Southern California firestorms resulted in legislation providing additional protections to homeowners. They include: • Senate Bill 64 (2003) In the event of a declared state of emergency, allows homeowners and insurers to mediate disputed homeowners insurance claims on a voluntary basis through the CDI. The cost of the mediation will be borne by the insurer up to a maximum of $1,500. • Senate Bill 1855 (2004) This bill requires insurers to add an additional disclosure to the California Residential Property Insurance Disclosure and the Declarations Page of a homeowners policy stating that the cost to rebuild your home may be different from your homeowners policy limits. It also changes the use of the words “Extended Replacement Cost Coverage” in the California Residential Property Insurance Disclosure to “Limited Replacement Cost Coverage.” This is designed to provide better disclosure to homeowners about their policy limits and the potential for underinsurance. This law requires insurers to distribute a new California Residential Property Insurance Bill of Rights to consumers every other year which outlines consumer and insurer rights and responsibilities. This brochure is also available upon request from the CDI. Summaries of Key Legislation