SB 495: California's New Contents Payment Rule for Disaster Victims

California Senate Bill 495 (SB 495) is one of the most significant policyholder protections enacted in recent years. Effective in 2026, it requires insurers to automatically pay 60% of the personal property (contents) coverage limit — up to $350,000 — when a total loss occurs in a state-declared disaster, without requiring a detailed inventory for at least 100 days. This is a dramatic improvement over the prior law, which required only 30% and had a lower cap.

Why This Matters

After a total loss — especially in a wildfire — everything is gone. Every piece of clothing, every kitchen utensil, every family photo, every piece of furniture, every tool in the garage. Traditionally, insurers required policyholders to produce a detailed room-by-room inventory of every single item before paying anything on the contents claim. This process takes months of painstaking, emotionally draining work at exactly the time when the policyholder needs money to survive — to buy clothes, replace essentials, and furnish temporary housing.

SB 495 addresses this by requiring insurers to put money in the policyholder's hands immediately, with the detailed inventory process deferred until later.

How the Previous Law Worked (Pre-SB 495)

Under the prior California law (effective 2022), insurers were required to offer at least 30% of the dwelling policy limit for personal property coverage, up to $250,000, without requiring an itemized claim. This was a step forward but had significant limitations:

• 30% was often not enough for immediate needs, especially for families
• The $250,000 cap left higher-value policies significantly short
• Some insurers interpreted “offer” loosely, making the process slow
• There was no clear timeline for how long the no-inventory period lasted

What SB 495 Changes

Higher Automatic Payment

The automatic advance payment increases from 30% to 60% of the personal property coverage limit. For a policy with $200,000 in contents coverage, that is $120,000 paid automatically — up from $60,000 under the old law.

Higher Cap

The cap increases from $250,000 to $350,000. Homeowners with higher-value contents coverage benefit proportionally more.

100-Day No-Inventory Period

The insurer cannot require a detailed room-by-room inventory for at least 100 days after the loss. This gives policyholders breathing room to stabilize before undertaking the massive task of inventorying everything they owned.

Broad Categories Accepted

For the automatic payment, the policyholder can submit claims using broad categories of lost contents rather than individual item-by-item inventories. This recognizes the reality that after a total loss, you may not remember every single item but you know the general scope of what you had.

Who It Applies To

SB 495 applies specifically to:

• Total losses — the home must be a total loss (not a partial loss)
• Declared disasters — the loss must occur in an area covered by a state-declared disaster emergency
• Residential policies — homeowner and dwelling fire policies

For partial losses outside of declared disasters, the standard contents claim process still applies — though our contents claims guide and inventory tool can help with that process.

What You Still Need to Do

SB 495 gets you an immediate advance, but it does not eliminate the need for a thorough inventory to claim the remaining 40% of your contents coverage. After the 100-day no-inventory period:

• You'll still need to document your contents. Work room by room, category by category. Our free Personal Property Inventory Tool has over 3,750 items organized by room to help you remember what you had.
• Replacement cost matters.The remaining payment will be based on the replacement cost (or ACV if your policy is ACV-only) of the specific items you document. Many policyholders significantly underutilize their contents coverage, often because they fail to create a thorough inventory or accept the insurer's initial estimate without challenge. Detailed documentation of personal property losses consistently leads to substantially higher settlements than incomplete or rushed inventories.
• Keep receipts. When you buy replacement items, keep every receipt. Under a replacement cost policy, you receive the holdback (depreciation) payment when you actually replace items.

Practical Tips

• Request the advance payment immediately. Do not wait for the insurer to offer. Reference SB 495 and formally request the 60% advance in writing.
• Track how you spend the advance. While you do not need to account for every dollar, keeping general records of how you spent the advance helps if questions arise later.
• Use the 100-day breathing room wisely.Start your detailed inventory when you are ready — but do not wait until day 100. The sooner you begin, the more items you'll remember. Walk through photos, videos, social media posts, and purchase histories to jog your memory.
• Do not undervalue your contents. Most homeowners significantly underestimate the replacement value of their personal property. Industry estimates suggest that a typical household contains $60,000 to $150,000 or more in personal belongings at replacement cost, depending on home size and lifestyle. Larger or higher-value homes can easily exceed $200,000. Be thorough and use replacement cost (what it costs to buy a comparable item new today), not what you originally paid.

This article is for informational purposes only and does not constitute legal advice. Insurance policies and applicable law vary by state and by policy form. Consult with a licensed professional regarding your specific situation.