California is proposing a new law to ease the burden on homeowners who lose everything in disasters.
The state’s insurance commissioner and legislators have announced a bill that would require insurers to pay 100% of the contents coverage for destroyed homes, without demanding a detailed inventory of lost belongings.
Currently, many insurers require homeowners to itemize every item lost, a process consumer advocates call “inhumane” and traumatizing. The proposed law, dubbed “Eliminate ‘The List’,” aims to remove this requirement, making California the first state to mandate full payouts without itemization.
The bill comes after recent fires and growing concerns about the stress placed on victims. While some insurers have voluntarily agreed to full payouts, the legislation would make it a legal requirement.
The bill now heads to the state legislature, where it’s expected to face pushback from the insurance industry.
