Sacramento, CA – Two bills to hold insurance companies accountable for the payouts they owe fire survivors passed the Assembly Insurance committee today with bipartisan support.
The legislation, Senate Bills 877 and 878 authored by Senator Sasha Renée Pérez and sponsored by the Every Fire Survivor’s Network and Consumer Watchdog, was proposed in response to hundreds of first-hand accounts from survivors of the Los Angeles fires that insurance company delays and underpayments are causing hardship and stalling recovery.
A third bill responding to the LA fires, SB 1301 by Senator Ben Allen, will help consumers keep the home insurance coverage they have and will be voted on in the committee next Wednesday.
“Today’s vote brings every Californian who pays insurance premiums one step closer to protection against the systemic delays and underpayments that have hindered recovery for too many families. Insurance is a promise, and Californians deserve to have that promise kept,” said Joy Chen, Executive Director, Every Fire Survivor’s Network
“Consumers paid their premiums for decades, sometimes generations, only to be stonewalled by their insurance when they needed it most. These bills will speed payouts that homeowners are owed and expose insurance claim lowballing to the light of day,” said Carmen Balber, executive director of Consumer Watchdog.
“Today, we moved another step closer to helping fire survivors recover by requiring transparency and accountability for the insurance industry,” said Senator Sasha Renée Pérez (D-Pasadena). “SB 877 will ensure transparency for homeowners in loss estimates, and SB 878 will penalize insurers for unnecessary delays in paying claims. Together, these bills will prevent the insurance industry from being roadblocks to recovery for survivors, such as those rebuilding after the Eaton and Palisades fires. I’m grateful to our sponsors for being such strong advocates for California policyholders.”
SB 877 helps consumers challenge claim underpayments by requiring insurers to disclose all original loss estimates and all revisions. If the numbers change, policyholders deserve to know.
The bill addresses a tactic uncovered in the LA Fires and across major disasters nationwide, where insurers have been found to alter, reduce, or entirely rewrite original loss estimates before homeowners ever see them. Following Hurricane Ian, a CBS 60 Minutes investigation revealed systematic slashing of estimates. In May 2025, the U.S. Senate heard testimony from whistleblower adjusters describing estimate manipulation as a widespread practice used to delay payments, exhaust survivors, and pressure families into accepting less than they are owed.
“SB 877 is simple. It requires insurers to show homeowners the original loss estimates so we can see any changes. After losing so much, simple transparency is the least we deserve,” said Sam Strgacich, who testified today. His standing home in Pasadena was left full of toxic contamination by the fire.
SB 878 strengthens existing laws on claim delays by requiring insurers to respond to claims in writing and on time and penalizes late payment of undisputed claims. SB 878 also speeds payouts after a disaster by requiring insurers to pay the actual cash value of a home that is a total loss after a declared disaster within thirty days of the loss. And it would require insurers to pay any undisputed portion of a home’s replacement cost within 30 days of a homeowner signing a contract to rebuild or purchasing a new home.
“SB 878 is about accountability. Families who have already lost everything should not be forced to fight month after month just to receive the payments we are owed,” said Damon Blount, a survivor of the Eaton fire who also testified before the Assembly Insurance Committee and lost his home and livelihood in the fire.
A San Francisco Chronicle investigative report into insurance claims abuses after the LA fires uncovered insurance company training manuals that direct claims adjusters to not put claims decisions in writing. The impact of such tactics is detailed in thousands of first-hand accounts collected by EFSN documenting consistent delay mechanisms: partial disputes used to delay payment of undisputed amounts, rotating adjusters that reset progress and miss deadlines, verbal-only denials that prevent enforcement or appeal, and prolonged open claims without written decisions.
The bills have passed the Senate and next head to the Assembly Appropriations Committee.
Watch the press conference with lawmakers and survivors in support of the bills.
Read Consumer Watchdog’s letters supporting the bills.
Learn more at www.fixinsurance.org
