Brief
Gov. Gavin Newsom signs fire‑insurance reforms but vetoes two victim‑complaint bills
The governor approved the Disaster Recovery Reform Act and a non‑renewal bill, but rejected measures that would have required insurers to share loss estimates and pay claims within 30 days.
By Felo News Desk · Published
California Governor Gavin Newsom signed two wildfire‑insurance reform measures on September 28, 2026, while vetoing two separate bills that targeted claims‑handling practices complained about by January 2025 fire victims, according to the Los Angeles Times.
What happened
Newsom approved the Disaster Recovery Reform Act (SB 876), sponsored by Sen. Steve Padilla and Insurance Commissioner Ricardo Lara, which doubles penalties for unfair claims practices during emergencies, mandates direct restitution to policyholders, and requires timely status reports when insurers change adjusters. He also signed SB 1301, introduced by Sen. Ben Allen, tightening rules on policy non‑renewals by requiring clear reasons, a 90‑day notice and a chance for homeowners to remedy issues.
What was said
"When disaster strikes, families shouldn’t have to face a second disaster in the claims process. SB 876 modernizes laws that were written for a different era," Padilla said in a statement reported by the Los Angeles Times.
How it came about
The signed bills follow earlier California efforts to bolster wildfire recovery, such as the post‑production tax credit signed by Newsom in September 2026 (Felo coverage). The vetoed measures, SB 877 and SB 878, were backed by bipartisan support and co‑sponsored by Lara, but Newsom indicated concerns in a letter to the Senate.
Key facts
- Newsom signed SB 876 and SB 1301 on September 28, 2026 (latimes.com)
- SB 876 doubles penalties for unfair claims practices during emergencies (latimes.com)
- SB 1301 requires insurers to give a 90‑day notice before non‑renewal (latimes.com)
- Newsom vetoed SB 877 and SB 878, which would have required insurers to share loss estimates and pay claims within 30 days (latimes.com)
Sources
- [1] latimes.com — originally reported as “Newsom signs fire insurance reforms but vetoes two bills addressing complaints by wildfire victims”
