A new California law will require home insurance companies to offer better coverage after disasters like wildfires.
Starting next year, all insurers must offer at least 50 percent extended replacement cost coverage. This coverage helps if rebuilding costs are higher than expected, so homeowners aren't left underinsured.
Sometimes, coverage limits are too low to rebuild after wildfires, especially when costs rise after disasters.
Currently, about 40 percent of companies already offer this type of coverage. Statewide, 87 percent of homeowners have some extended replacement coverage, and a third have at least 50 percent.