Residential property insurance: state of emergency.

Existing law generally regulates classes of insurance, including residential property insurance. Existing law requires coverage for additional living expenses incurred due to a covered loss relating to a state of emergency to be for a period of no less than 24 months. Existing law prohibits, in the event of a total loss of the insured structure, a policy from limiting or denying payment of the building code upgrade cost or the replacement 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. For a covered loss relating to a state of emergency, on and after July 1, 2021, this bill would prohibit a policy that provides coverage for additional living expenses from limiting the policyholder's right to recovery if the insured home is rendered uninhabitable by a covered peril, but would authorize an insurer to provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The bill would require additional living expense coverage to be provided for at least 2 weeks, with additional 2-week extensions, in the event of a state of emergency and an order of civil authority restricting access to the home, as specified. The bill would require the measure of damages available to a policyholder to use to rebuild or replace the insured home at another location to be the amount that would have been recoverable had the insured dwelling been rebuilt at its original location, without deduction for the value of land at the new location. The bill would, for losses related to a declared state of emergency and for which an insured makes a claim on or after January 1, 2021, require the insurer to provide an advance payment for living expenses and to accept an inventory of contents in any reasonable form. The bill would require an insurer to offer a 60-day grace period for payments of premiums for policies on property located within an area defined in a declared state of emergency for a period of 60 days after the emergency. The bill would also declare the severability of its provisions.