Vice Chair Sanchez proposes deduction for homeowners'insurance premiums amid affordability concerns

Vice Chair Sanchez presented AB 1620 to the committee, proposing an itemized deduction for homeowners'insurance premiums for a principal residence to help Californians facing rising premiums and insurer market exits.

Scott Kaufman of the Howard Jarvis Taxpayers Association testified in support, saying that increasing premiums and fewer available policies have prompted some homeowners to sell or leave California. "AB 16 20 offers a reasonable intervention in the tax code that would offset the cost of homeowners insurance premiums for Californians," Kaufman said, noting a phased start and sunset included in the proposal.

Support also came from the California Association of Realtors, while the California Tax Reform Association opposed the measure, arguing that deductions disproportionately benefit higher-income homeowners and that market fixes should address insurance availability.

Committee members asked technical questions about whether the deduction would be itemized only and about compliance with existing tax rules; the author said she would work with policy committee staff to craft acceptable language. Chair Gibson referred the bill to the committee's suspense file.