Authored by Senator Sasha Renée Pérez and backed by the Every Fire Survivor's Network and Consumer Watchdog, the legislation addresses specific industry tactics that hampered families following the Los Angeles fires. SB 877 mandates that insurers disclose all original loss estimates and subsequent revisions to policyholders. This measure directly targets the practice of "lowballing," where companies quietly slash damage estimates to reduce their financial liability—a strategy recently scrutinized by federal investigators and whistleblower adjusters.

SB 878 targets the administrative bottlenecks survivors face after disaster strikes. It requires insurers to provide written responses to claims and establishes strict 30-day deadlines for paying the actual cash value of homes declared a total loss. By penalizing late payments on undisputed claims, the bill seeks to dismantle the industry practice of using rotating adjusters and verbal-only denials to exhaust homeowners. These measures now head to the Assembly Appropriations Committee, marking a significant shift in the state's oversight of insurance carriers following reports of widespread abuse.