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natural disasters can turn lives upside
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down in an instant for homeowners the
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aftermath often brings a grueling
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journey of recovery and
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rebuilding now a new bill backed by
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California governor Gavin Nome aims to
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ease some of the financial strain for
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those affected by disasters like the
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recent Palisades and eaten fires the
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proposed legislation authored by
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assembly member John harabedian
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addresses a crucial Gap in California
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law currently when Insurance payouts for
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destroyed or damaged homes are held in
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escro during rebuilding lenders can
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collect the interest earned on these
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funds this new bill would change that
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ensuring that homeowners not lenders
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benefit from this interest under
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existing law lenders must pay interest
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on esro funds for property taxes and
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insurance payments however this rule
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doesn't apply to Insurance payouts for
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the proposed bill would amend state law
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to include these payouts potentially
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providing a significant financial boost
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to homeowners in the midst of rebuilding
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to put this into perspective the
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interest on esro funds can accumulate at
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an annual rate of about 2% for a $1
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million insurance payout this could
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amount to $20,000 per year for families
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struggling to rebuild their homes and
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lives this extra money could make a
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substantial difference Governor Nome
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emphasized the importance of this
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measure stating that every dollar counts
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for those rebuilding their homes and
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lives the bill aims to ensure that
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people affected by disasters have access
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to all the resources they deserve this
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proposed legislation is part of a
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broader effort to support Disaster
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Recovery in California the state has
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recently implemented measures to
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streamline rebuilding processes provide
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tax relief and protect residents from
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predatory practices in disaster zones
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these actions collectively prioritize
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the needs of individuals and communities
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over corporate interests for families in
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areas like Altadena and Pacific
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Palisades who have experienced
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devastating losses this bill could mean
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more than just Financial relief it
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represents a step towards fairness and
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empowerment acknowledging that the
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burdens of recovery should not fall
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disproportionately on those already
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suffering immense loss as California
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continues to face the challenges of
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natural disasters this proposed Bill
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signals a commitment to prioritizing
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people in the recovery process it offers
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hope that rebuilding can happen with
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greater dignity and financial support
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potentially serving as a model for more
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Equitable Disaster Recovery policies
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Across the Nation thank you for joining
2:43
us for insurance news and make sure to
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hit subscribe this helps in so many more
2:47
ways than you think until next time
