Residential Insurance Home-Renters

State of California Department of Insurance 25 • Assembly Bill 2199 (2004) Establishes a minimum 12-month period in non-catastrophic situations (with additional 6-month extensions if the policyholder can show good cause for needing more time), and a 24-month period for declared “state of emergency” situations for homeowners to repair, rebuild, or replace their home after a loss, commencing with payment of actual cash value. Also, it allows homeowners the flexibility to rebuild or replace in a different location than where the original loss occurred in the event of a total loss. • Assembly Bill 2962 (2004) In the event of a total loss to the structure: Requires insurers to consult with homeowners at the time of their policy renewal (if reconstruction of the insured structure has not been completed), and adjust the policy, limits, coverages, endorsements, or premium to reflect the changed exposure to risk. This law prohibits insurers from canceling a policy between renewal periods while a home is being rebuilt, except in cases of fraud and misrepresentation. It also prohibits insurers from using the fact that the primary insured structure is damaged as a result of the total loss, as the sole basis for canceling a policy. Requires insurers to renew a homeowners policy at least once if the total loss was caused by a declared disaster and the loss wasn’t due to the negligence of the insured.