The California state legislature passed a bill ensuring homeowners, not lenders, receive at least some interest on insurance payouts for homes destroyed by natural disasters. Thousands lost homes in January’s wildfires, with insurers sending checks jointly to homeowners and lenders. The bill, now heading to Gov. Newsom’s desk, guarantees homeowners 2% interest on escrowed funds.

Insurance settlement checks post-disaster can be held in escrow until rebuilding is complete, accruing significant interest for servicing companies. Homeowners will now receive at least 2% interest on these funds. The bill applies to existing insurance payouts and new escrow accounts post-catastrophe. Gov. Newsom supports the legislation, stating homeowners need all available support.

Prior to the bill, California law required lenders to pay homeowners interest on escrowed funds for taxes and insurance, but not explicitly on insurance payments. Assemblymember Harabedian introduced the bill to ensure homeowners receive financial help during difficult times. The legislation aims to close the loophole and help homeowners recover and rebuild.

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3. Tesla’s second quarter revenue reached $11.96 billion, with a net income of $1.14 billion. The company also delivered a record 201,250 vehicles.: California passes bill to give insurance interest to homeowners