Gov. Gavin Newsom Friday signed legislation requiring lenders to pay homeowners interest on insurance proceeds held in escrow after property damage or loss.

Assembly Bill 439, known as the Disaster Interest Accrual Act, guarantees homeowners at least 2% annual interest on post-loss insurance payouts placed in escrow during rebuilding, which can take months or years.

Stream Los Angeles News for free, 24/7, wherever you are. WATCH HERE

"Homeowners rebuilding after a disaster need all the support they can get, including the interest earned on their insurance funds,'' Newsom said in a statement. "I am proud to deliver this commonsense solution to ensure survivors receive every resource available to help them recover and rebuild.''

While California law has long required lenders to pay in

See Full Page