Mind The Gap: California Assembly Bill 2756 Amends Insurance Code To Bridge Gaps In Coverage

Recent legislative reforms are working to bridge perceived gaps in coverage – particularly for the peril of fire – following the past few years of catastrophic wildfires in California. One such measure is California Assembly Bill 2756, which requires an insurer to obtain a signed acknowledgement from an applicant or insured if the insurer issues a residential property insurance policy on or after July 1, 2021, that does not provide coverage for the peril of fire.

The following new provisions in the California Insurance Code are now in effect with respect to fire policies and coverage for catastrophic fire losses.

1. Mandatory Disclosure When a Policy Does Not Cover the Peril of Fire