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Regulation On Insurers' Home Replacement Estimates Upheld

  

(AP) - The California Supreme Court has upheld a state regulation that aims to give homeowners an accurate assessment of the amount of insurance they need to replace their homes in case of a wildfire or other disaster.

A unanimous court on Monday said the state's insurance commissioner had the power to issue the 2011 regulation. The Association of California Insurance Companies had argued that the commissioner had exceeded the authority given to him by the state Legislature.

The association did not immediately have comment.

The regulation requires insurers to include costs such as demolition and debris removal when providing homeowners with an estimate of how much money it would take to replace their homes. It came in the wake of complaints that homes destroyed in wildfires were underinsured because insurers had not presented complete replacement costs.

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