State • California

SB 876: Fire and residential property insurance.

Steve PadillaIn Committee

SB 876 status: In Committee — From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (June 30). Re-referred to Com. on APPR (updated Jul 1, 2026).

1

What this bill does

Overall score

Score80/100 civic fit
RiskModerate risk
ImpactHigh impact 90/100

Bill summary

Official

(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 ...

Key analysis

Constitutionality90%
Bipartisan60%
Public opinion85%
2

Impact analysis

Environment

Positive Outlook
65%

Benefits

  • Encourages rebuilding to modern building codes
  • Provides clearer pathways for sustainable, code-compliant reconstruction

Risks

  • May lead to increased resource demand in disaster-affected areas

Economy

Mixed / Neutral
55%

Benefits

  • Increases financial stability for households after catastrophic losses
  • Reduces consumer out-of-pocket expenses during demand surge periods

Risks

  • May increase compliance and operational costs for insurers
  • Risk of insurers passing costs through premium increases

Society

Positive Outlook
85%

Benefits

  • Significantly strengthens consumer protections for disaster victims
  • Expands timelines and support for additional living expenses
  • Standardizes claims handling to reduce insurer mismanagement

Risks

  • Potential for insurer exit or tightening of underwriting criteria in high-risk areas
3

How trustworthy & consequential it is

Source

LegiScan

Confidence

high

high

Analysis status

LegiScan full bill text

Warning

Increased regulatory and liability burdens on insurers may contribute to further market contraction or insurer withdrawals from high-risk California wildfire regions.

Limitation

Economic impact projections rely on legislative intent and market response, which cannot be fully predicted.

4

Where it stands

Introduced

Complete
2

Committee

Current

From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (June 30). Re-referred to Com. on APPR.

3

Floor

Upcoming
4

Governor

Upcoming
5

Enacted

Upcoming
5

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6

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