Senate Bill 525, introduced by Senator Brian W. Jones, aims to require the FAIR Plan—the state’s insurer of last resort—to offer optional full replacement cost insurance for mobile homes. Currently, such policies do not exist, leaving owners underinsured.
Today, most mobile home insurance only covers the original purchase price, not the cost to rebuild. For example, a home bought for 50,000twodecadesagomaynowcost125,000 to replace. If a fire destroys it, the insurance payout falls far short. SB 525 would change that, giving owners the option to insure their homes at current replacement value.
A Timeline of the Journey
The bill began gaining momentum in January 2025 after Senator Jones heard from a constituent struggling with inadequate coverage. On April 23, 2025, it passed the Senate Insurance Committee with a unanimous 4-0 vote. It then moved through multiple legislative committees and debates over the spring and summer. By September 2025, it cleared the full legislature and was sent to Governor Gavin Newsom for signature.
What Would This Mean for Consumers?
For over 500,000 mobile home residents in California, this bill could be life-changing. Many are lower-income families or retirees who have long felt excluded from fair insurance options. Without proper coverage, disasters like wildfires can leave them homeless with little financial recourse.
The bill does not force anyone to buy full replacement coverage—it simply makes it available. Supporters say it’s a matter of dignity and equity. Kent Michitsch, a resident of Ramona, put it clearly: “My home is just as much a home to me as anyone else’s is.” This change would finally give mobile home owners the chance to protect their homes and lives like other homeowners do.
What About Insurance Companies?
The FAIR Plan will face new financial risks under this bill, as it will need to offer higher-value policies in fire-prone areas. Replacement costs today are steep, and covering them could strain the program’s resources.There may also be ripple effects in the private insurance market. Some companies might follow suit, while others could raise premiums or tighten eligibility. Insurers will need to reassess how they value and price mobile home coverage. While this could impact profitability in the short term, it may also lead to more stable and equitable insurance practices over time.
A Long Time Coming
This is more than an insurance reform—it’s a step toward fairness. For years, mobile home owners have been treated as second-class citizens in the housing system. Senator Jones spent six years advocating for this change, driven by real stories of hardship.Now, the decision rests with Governor Newsom. If he signs SB 525 into law, it will give thousands of Californians something they’ve long been denied: the peace of mind that their home—and their future—is protected.
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