Just as Los Angeles shakes out of the devastation of the Palisade and Eton fires, Gavin Newsom, according to his office, benefits from interest earned on insurance payments for properties that have been destroyed or damaged, rather than lenders. We will sponsor a bill that guarantees you will get.
“After a disaster, homeowners will need to rebuild after they need all the support they can obtain, including the interest they earned from the insurance fund,” Newsom said in a statement announcing the planned bill. I did.
The state bill will be written by lawmaker John Halavedian (D-Pasadena). A Newsom’s Office spokesperson said the bill is expected to be implemented by the end of the month.
Insurance payments can bring significant benefits while the money sits in escrow during reconstruction, supporters of the bill say. California law, according to the governor’s office, requires lenders to pay homeowners property taxes and interest on insurance escrowed funds, but the insurance held in escrow is No payment is required.
A Newsom’s Office spokesman said it usually costs around 2% per year, and $1 million payments for a destroyed home will cost around $20,000 a year.
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