After a wildfire destroys a home, the insurance claim often becomes the next major task for a family. Policyholders need to see how their loss was valued, and they need to know when payment is due. In late September 2026, Governor Gavin Newsom vetoed two bills written to address both concerns, and the decision left many survivors wondering what protections they can count on.
Our partner Ed Susolik shared his reaction with the Daily Journal, and his comments ran on Sept. 29, 2026. Callahan & Blaine, PC has insurance litigation attorneys who work with policyholders, and Ed is one of them. Below, we look at what the bills would have done, why the governor vetoed them, and what Ed had to say.
What Senate Bills 877 and 878 Would Have Changed
Senator Sasha Pérez wrote both bills after survivors of the January 2025 Eaton and Palisades fires raised concerns about how their insurance claims were handled. Her goal was to give policyholders more information and clearer timelines for decisions and payments. The main points of each bill are listed here.
- SB 877 would have clarified that the claim-related documents insurers must provide on request include preliminary and final loss estimates and calculations of the loss, covered damage, and repair costs.
- SB 878 would have placed claims-processing deadlines into state law, generally giving insurers 40 days after proof of loss to accept or deny a residential property claim.
- SB 878 would also have set a 30-day payment window after acceptance, with interest owed on certain late payments.
Both bills were meant to give families a clearer picture of where a claim stands. Access to documents such as loss estimates may help a homeowner review how an insurer reached a particular number, and firm deadlines may help families plan their next steps while they rebuild.
The Governor’s Reasoning for the Veto
Governor Newsom wrote in his veto message that the bills mostly put into law what Department of Insurance regulations and guidance already cover for claims documents and payment deadlines. Citing broader insurance reforms, including the Sustainable Insurance Strategy, he called the measures “unnecessary at this time.”
The governor did sign a related measure, SB 876, known as the Disaster Recovery Reform Act, which takes effect Jan. 1. According to CalMatters, the new law requires insurers to send customers a status report within 15 days of assigning a new adjuster to a claim, doubles certain penalties during a declared emergency, and requires insurers to send a disaster recovery plan to the Department of Insurance. Policyholders may still see new claims requirements even though the two bills did not become law.
Ed Susolik Disagrees With the Veto
In a story by reporter Skyler Romero, the Daily Journal described Ed as a partner at our firm who works with policyholders, including people affected by the Eaton and Palisades fires. Ed Susolik made his position on the veto clear. “I fundamentally disagree with the veto,” he said.
Ed also explained what was at stake for consumers. In his view, the bills would have given consumers “significantly more protections in getting their insurance claims paid fairly and reasonably.” The article noted that other policyholder attorneys also criticized the veto. Our team helps clients with matters such as home insurance claim disputes and property damage insurance claims, so we’re familiar with the questions these bills raise.
What Comes Next for Policyholders?
Senator Pérez has said she expects to return with follow-up legislation next year, and she noted it might be a bigger bill. CalMatters reported that the consumer groups behind the bills also plan to try again next session, so the conversation about claim deadlines and document access is likely to continue. Until lawmakers take up the issue again, SB 876 offers some added requirements for insurers.
Policyholders with open claims may find it helpful to keep every estimate, letter, and email in one place, and to note the date of each exchange with the insurer. These records may be useful if questions come up later. Our attorneys also handle insurance litigation in Los Angeles for policyholders in the areas affected by these fires.
Hire Callahan & Blaine, PC to Handle Your Litigation Matter
Callahan & Blaine, PC is a California litigation firm with 29 lawyers, and insurance matters are a regular part of our work. Ed’s comments to the Daily Journal reflect the attention we give to policyholder issues, and we watch closely how new laws may affect the families we assist.
If your insurance claim has stalled after a fire or another property loss, we may be able to help. Contact us to submit your potential case, and our team can review the details of your matter and explain the options that may be available to you.
