2022 California Laws Impacting Insurance Needs
New legislation in California for 2022 affects homeowners and drivers, with significant implications for insurance policies. Notably, Senate Bill 9 allows the construction of multiple housing units on single-family lots, necessitating changes to homeowners' insurance. Homeowners may need individual policies for each unit or amendments for rental properties. Additionally, Traffic Safety Bill AB47 imposes penalties for repeated violations of hands-free driving laws, impacting auto insurance premiums. Mercury Insurance emphasizes the need for policy adjustments to align with these new laws.
- Consumers may benefit from potential discounts by bundling policies after property modifications.
- The company is proactive in informing customers about changes that affect their insurance needs.
- Homeowners may face increased costs if separate insurance policies are required for newly constructed units.
- The traffic law could lead to higher premiums for drivers with repeated offenses, impacting customer satisfaction.
LOS ANGELES, Feb. 3, 2022 /PRNewswire/ -- New legislation has been ushered in for Californians this year. From property development to traffic regulations, some of the new laws may affect how California residents get around their neighborhood and what those neighborhoods might look like in the near future.
"California homeowners and drivers should be aware of the new laws that are already in effect for 2022," said Adam Bakonis, Mercury Insurance Product Manager. "Your insurance coverages may need to be adjusted to protect your family and property. Mercury is always keeping a watchful eye out to better protect its customers."
These signed bills Californians should be aware of now and how it could affect their insurance coverage:
- Senate Bill 9: Known as the "duplex bill," allows a second dwelling unit to be built on an existing single-family lot or a subdivision of an existing single-family lot to be turned into two separate lots where up to two housing units can be built on each lot. As a result, a lot with one single-family unit today could be split into two lots with a total of four housing units with limited opposition by local officials. Homeowners would still need to obtain permits, but officials would generally have to allow property owners in certain California communities the opportunity to build more than one unit on what was once considered a single-family lot. However, homeowners who choose to build more than one unit on their property will need to change their homeowners' insurance policy.
"If a lot is split, homeowners may need individual policies for each lot to address the specific needs pertaining to it and the separate buildings on each lot," said Bakonis. "In some scenarios, homeowners may be able to bundle policies with the same carrier, which may give them a discount on premiums. Policyholders should speak to their insurance agent before beginning any construction in order to assess what coverage is appropriate.
"Homeowners that choose not to split their lot, but to build an additional home on their property and use it for rental income may need to amend their homeowners' policy or they may need a separate landlord policy depending on the circumstances." - Traffic Safety Bill AB47: While this law took effect on July 1, 2021, it's important to note that it will put points on a driver's record for those caught violating the hands-free driving law for a second time in 36 months. The law is meant to prevent talking or texting with a phone in your hands while driving.
The best way for drivers to keep their premiums low is to keep distractions at bay and not use a smart phone or any device that is going to take their attention away from the road while driving," said Kevin Quinn, Vice President of Claims at Mercury Insurance.
About Mercury Insurance
Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Illinois, Georgia, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.
Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultracompetitive rates with excellent customer service. Mercury has earned "A" ratings from A.M. Best and Fitch, as well as ranking highest in the J.D. Power 2021 U.S. Insurance Digital Experience StudySM and four consecutive "Best Auto Insurance Company" awards from Insure.com. For more information visit www.MercuryInsurance.com or follow the company on Twitter or Facebook.
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SOURCE Mercury Insurance
FAQ
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