SB 876: Fire and residential property insurance.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law generally regulates classes of insurance, including fire and residential property insurance.

Existing law prohibits a policy from limiting or denying a payment of building code upgrade cost on the basis that the insured has decided to rebuild at a new location or to purchase an already built home at a new location.

If there is a total loss of the insured structure, this bill would require the building code upgrade cost payable to include all costs that would have been incurred if the insured structure been completely rebuilt at its original location.

(2)Existing law requires a disclosure to be provided upon an offer of a residential property insurance policy that states policies offering extended replacement cost coverage of at least 50% may be available for that property and that includes the internet website address of the Homeowners Coverage Comparison Tool. Existing law exempts specified insurers, agents, and brokers from this requirement.

This bill would instead prohibit a residential property insurance policy from being issued or renewed unless the applicant or insured is offered extended replacement cost coverage in an amount of no less than 50% of coverage above the policy limits for the primary dwelling if the property is eligible for replacement cost coverage. If an applicant or policyholder declines this offer, the bill would require the insurer to record acknowledgment of the declination, as specified.

(3)Existing law requires an insurer that provides replacement cost coverage to provide a cost estimate for rebuilding or replacing the structure at specified intervals, but exempts an insurer that meets specified criteria from this requirement.

Sponsors

Sponsors by party (alphabetical): Democratic 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 27, 2026Chaptered by Secretary of State. Chapter 656, Statutes of 2026.
2. September 27, 2026Approved by the Governor.
3. September 9, 2026Enrolled and presented to the Governor at 2 p.m.
4. August 31, 2026Assembly amendments concurred in. (Ayes 26. Noes 9.) Ordered to engrossing and enrolling.
5. August 31, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 31, 2026Read third time. Passed. (Ayes 59. Noes 19. Page 7000.) Ordered to the Senate.
7. August 20, 2026Ordered to third reading.
8. August 20, 2026Read third time and amended.
9. August 17, 2026Read second time. Ordered to third reading.
10. August 13, 2026Read second time and amended. Ordered to second reading.
11. August 13, 2026From committee: Do pass as amended. (Ayes 11. Noes 4.) (August 13).
12. August 13, 2026Assembly Rule 63 suspended.