The California Board of Equalization (BOE) meeting on May 28, 2025, highlighted critical discussions surrounding insurance coverage and consumer protection, particularly in the wake of disasters. Amy Bach, executive director and co-founder of United Policyholders, addressed the board, emphasizing the ongoing issue of underinsurance that affects disaster-impacted households.

Bach, a recognized expert in insurance trends and public policy, outlined the challenges consumers face when navigating their insurance policies. She noted that many homeowners are inadequately covered, which can lead to significant financial distress after disasters. Her organization has been actively working to educate consumers through programs like the "Road Map to Recovery" and "Road Map to Preparedness," which aim to provide guidance on insurance policies and coverage options.

A key recommendation from Bach was for insurers to be mandated to offer extended replacement cost coverage of at least 50%. This type of coverage can significantly mitigate the risk of underinsurance, as it provides additional funds to rebuild homes that may exceed the original policy limits. Bach pointed out that homeowners with this coverage tend to fare better after disasters, yet many remain unaware of its availability.

The meeting also touched on the importance of building code upgrade coverage, which is essential for older homes that may need to comply with updated regulations after damage. Current legislation requires insurers in California to include a minimum of 10% law and ordinance coverage, but Bach argued that more robust options should be made available to consumers.

The discussions at the BOE meeting underscore the urgent need for reforms in the insurance industry to better protect consumers, particularly those living in disaster-prone areas. As the board considers these recommendations, the implications for California homeowners could be significant, potentially leading to more comprehensive insurance options and improved recovery outcomes in the face of future disasters.