Does California’s New Wildfire Contents Rule Help—or Create New Coverage Gaps?

Recently, California Senate Bill 495, authored by Senator Ben Allen, who represents the Pacific Palisades, was signed into law. This bill changes how wildfire victims are paid for their personal property losses by expanding the current law, which became effective only in January 2022.

What SB 495 Means for Wildfire Victims and Insurers

Beginning in 2026, when a total loss occurs in a declared disaster, insurers must automatically pay 60 percent of the personal property (contents) coverage limit (up to $350,000) without requiring a detailed inventory for at least 100 days. This would have applied to all victims of the January 2025 Los Angeles County wildfires, who needed quick relief after losing all of their contents.

This amount is double the current law codified under California Insurance Code § 10103.7, which guarantees 30 percent and caps payments at $250,000. On paper, this looks like meaningful relief. Anyone who’s been through a total loss knows the pain of “the list”—the spreadsheet of every shirt, spoon, and book you’ve ever owned. Preparing these lists is one of the most time-consuming and stressful parts of suffering a total loss. Giving survivors more time and money up front is progress.

Why More Upfront Money Might Lead to Tighter Policies

At the same time, this law could, in the long run, affect how carriers determine policy limits and sub-limits for certain types of personal property. When insurers are forced to front more money without documentation, the pressure often shifts elsewhere. Some carriers may respond by reducing personal property limits overall or tightening exclusions for certain categories of items. Others may move high-value contents—for example, art, jewelry, collectibles, watches—under stricter sub-limits or endorsements.

Despite the change, homeowners should review their coverage now, especially if they live in a high-risk wildfire zone, a geographic area that expands each year. Confirm that your personal property limits actually reflect what you own, and that expensive or unique items are scheduled separately. Sub-limits for valuables often top out at only a few thousand dollars unless you have a rider or personal articles policy.

A law like this can help people recover faster, but it also reminds us that the fine print still runs the show. Better rules for advance payments are welcome, but lasting protection still comes from working on your policy’s design and documenting your contents long before the loss occurs.