A new California bill would require insurers to pay homeowners 100% of their coverage for belongings lost in natural disasters—without needing to provide itemized lists of possessions.
The Eliminate “The List” Act, part of a package of bills, targets homes destroyed in events like the fires that swept through greater Los Angeles in January.
Why it matters: The bill would ease the burden on disaster survivors by eliminating the time-consuming and potentially distressing process of itemizing lost belongings.
- If passed, California would become the first state in the U.S. to set such a requirement, offering such protection to policyholders.
The proposed bill follows a 2020 California law requiring insurers to pay 30% of the dwelling limit without itemization during declared emergencies.
How it compares: Similar proposals in Oregon and Colorado aimed for payouts of 70% and 65% of coverage limits without inventory, but California’s bill pushes for full reimbursement.
What they’re saying: “As we face increasingly catastrophic disasters, our responsibility is to assist people in their recovery while also ensuring we are better prepared for the next event,” Insurance Commissioner Ricardo Lara said.
“Wildfire victims have been through so much, and deserve all the support we can offer,” bill sponsor State Senator Ben Allen said in a statement. “Guaranteeing coverage of their possessions offers an important step towards closure.”
The big picture: The proposed law is part of a broader legislative package of 10 bills addressing wildfire recovery and mitigation.
Together, the package of laws seeks to improve consumer protections, maximize insurance payouts, and contribute to building a more insurable future for Californians.
Image: Ringo Chiu / Shutterstock.com
