Story perspectives
New Law Ensures Homeowners Earn Interest on Insurance Payouts
8/31/2025
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Story summary
- California Governor Gavin Newsom signed Assembly Bill 439 on August 29, 2025.
- The law requires lenders to pay homeowners a minimum of 2% annual interest on insurance proceeds in escrow.
- This legislation closes a loophole, ensuring homeowners receive interest on disaster-related insurance payouts.
- The bill takes effect immediately to enhance disaster recovery efforts across the state.
