Southern California wildfire survivors are criticizing Gov. Gavin Newsom after he rejected two insurance bills they viewed as basic protections for people rebuilding after a disaster.
Here's what to know
Spectrum News reported that Newsom vetoed SB 877 and SB 878, proposals meant to give policyholders a clearer view of how insurers value losses and make claim decisions.
Every Fire Survivors Network, which said it works with more than 10,000 people connected to the January 2025 Eaton and Palisades fires, helped develop the bills alongside Consumer Watchdog. State lawmakers, the California Department of Insurance, and industry representatives also gave input. Sen. Sasha Renée Pérez, D-Pasadena, introduced the measures, and state Sen. Ben Allen, D-El Segundo, co-authored them.
One bill, SB 877, would have required insurers to share their first estimate of a policyholder's loss along with any later adjustments, so people could spot changes that shrink a payout. The other, SB 878, would have required insurers to explain claim decisions in writing and pay interest on delayed payments.
Newsom argued in his veto statement that regulations from California Insurance Commissioner Ricardo Lara made the bills "unnecessary at this time."
Joy Chen, the nonprofit's executive director, said in a statement, "These were basic protections: tell us how our claims are being valued, explain your decisions, and pay us what we are owed on time."
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
More background
Insurance disputes can become a major obstacle after disasters, when families need money quickly to find temporary housing and start rebuilding.
The nonprofit said the bills grew out of survivors' experiences with claims that were delayed or came in too low.
"We paid our premiums for years," Chen said. "Then disaster came, and too many of us discovered that having insurance and getting the benefits we paid for are two very different things.
"Survivors sought help from our government to hold insurance companies accountable and put basic protections in place so every Californian can get what we paid for when the worst happens."
When insurance systems fail after a fire, the effects can reach beyond individual households. Slower rebuilding can drag down neighborhood recovery and make it harder for communities to regain stability after a disaster.
What's being done?
After the vetoes, both groups criticized the decision and said they would seek to bring the protections back next year.
Advocates said clearer standards would help families rebuild and communities recover.
"Gov. Newsom's vetoes leave every Californian who depends on insurance more vulnerable to the same practices that kept LA fire survivors from rebuilding our homes and lives. When insurance fails after disaster, families cannot rebuild, communities cannot recover, and California's housing crisis gets worse," Chen added.
Where can I learn more?
For more on California's wildfire insurance troubles:
• California regulators forced insurers to write more wildfire-area policies, which they called a historic moment for homeowners.
• In Los Angeles, homeowners were screwed by insurers long before the Palisades Fire exposed the damage.
• California officials took unprecedented action against coverage losses as major insurers kept dropping homeowners.
• In California, every company matters to homeowners when a major insurer stops new coverage.
• California lawmakers approved a bill addressing insurance gaps after devastating fires upended home recovery.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
