Insurance: residential and commercial.
- Requires California to cover residential property insurance rate increases above 7% through 2030.
- Eliminates state tax on residential property insurance premiums starting January 2026.
- Mandates a $1 billion annual investment in fire risk reduction over four years.
- Requires the Department of Insurance to propose regulatory reforms by March 2026.
Assembly Member DeMaio's residential insurance reform package proposes state coverage of certain premium increases while eliminating taxes on residential property policies through 2030. The legislation would require California to pay for annual residential property insurance rate increases that exceed either 7% or the national average increase, whichever is lower, contingent upon appropriation of funds.
The Department of Insurance must deliver a comprehensive report to the Legislature by March 31, 2026, developed in consultation with insurers. This report will examine potential regulatory changes to maintain rate increases at or below national averages, outline a $4 billion fire fuel reduction strategy over four years, and identify regulations affecting defensible space and brush management that could be suspended or reformed. The bill also directs the governor to pursue discussions with federal officials regarding a national reinsurance relief program.
Under the tax provisions, premiums received for residential property insurance policies would be exempt from the state's 2.35% gross premiums tax beginning January 1, 2026. The legislation includes a sunset clause that would terminate all provisions on January 1, 2030, reverting tax rates and premium increase policies to their previous status unless extended by future legislation.
 Sharon Quirk-SilvaD Assemblymember | Committee Member |  Not Contacted | |
 Mike GipsonD Assemblymember | Committee Member | Not Contacted | |
 Tina McKinnorD Assemblymember | Committee Member | Not Contacted | |
 Jasmeet BainsD Assemblymember | Committee Member | Not Contacted | |
 Tri TaR Assemblymember | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Requires California to cover residential property insurance rate increases above 7% through 2030.
- Eliminates state tax on residential property insurance premiums starting January 2026.
- Mandates a $1 billion annual investment in fire risk reduction over four years.
- Requires the Department of Insurance to propose regulatory reforms by March 2026.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Member DeMaio's residential insurance reform package proposes state coverage of certain premium increases while eliminating taxes on residential property policies through 2030. The legislation would require California to pay for annual residential property insurance rate increases that exceed either 7% or the national average increase, whichever is lower, contingent upon appropriation of funds.
The Department of Insurance must deliver a comprehensive report to the Legislature by March 31, 2026, developed in consultation with insurers. This report will examine potential regulatory changes to maintain rate increases at or below national averages, outline a $4 billion fire fuel reduction strategy over four years, and identify regulations affecting defensible space and brush management that could be suspended or reformed. The bill also directs the governor to pursue discussions with federal officials regarding a national reinsurance relief program.
Under the tax provisions, premiums received for residential property insurance policies would be exempt from the state's 2.35% gross premiums tax beginning January 1, 2026. The legislation includes a sunset clause that would terminate all provisions on January 1, 2030, reverting tax rates and premium increase policies to their previous status unless extended by future legislation.
Sharon Quirk-SilvaD Assemblymember | Committee Member | Not Contacted | |
Mike GipsonD Assemblymember | Committee Member | Not Contacted | |
Tina McKinnorD Assemblymember | Committee Member | Not Contacted | |
Jasmeet BainsD Assemblymember | Committee Member | Not Contacted | |
Tri TaR Assemblymember | Committee Member | Not Contacted |