The Overview

If your home insurer drops you, California law now requires the company to tell you exactly why and what you can do to keep your coverage. California's Senate Bill 1301, which deals with residential property insurance nonrenewals, became law when Gov. Gavin Newsom (D) signed it Sept. 27. ​

Insurers have been pulling back from California's home insurance market as wildfire risk grows, pushing more homeowners toward the state's FAIR Plan, a last-resort option with higher premiums and less comprehensive coverage than standard policies, according to the Associated Press and the Los Angeles Times. The law takes effect Jan. 1, 2028.

What the Law Does

Starting January 1, 2028, insurers must send nonrenewal notices at least 90 days before a policy expires, up from 75 days, and must explain the grounds for nonrenewal in plain language along with all nonaerial imagery relied upon. If a policyholder asks, the insurer must hand over any property inspection reports within 15 days. When the insurer finds a fixable problem, it must give the homeowner at least 120 days before expiration and 90 days to make repairs or supply additional information before the non-renewal takes effect.

The law also bars insurers from dropping a policy solely because of certain past claims, a prior inquiry, or roof age under specified circumstances. Starting April 1, 2029, insurers must file annual nonrenewal reports with the state Insurance Commissioner, who must publish an aggregated summary each September.

Legislative Status

Sen. Ben Allen (D) sponsored the bill, with principal coauthors Sen. Sasha Pérez (D) and Harabedian, and coauthors Sen. Scott Wiener (D), Asm. Damon Connolly (D), and Asm. Pilar Schiavo (D). The Senate passed the bill May 26, 29 to 7. The Assembly passed it Aug. 31, 63 to 11, and the Senate concurred in Assembly amendments the same day, 29 to 7.

Allen said, "The protections provided in SB 1301 help working families maintain their safety net while helping them address their risk of loss, all the while providing stronger protections for policyholders and greater transparency." Consumer Watchdog, which sponsored the bill, said the law gives families more notice before losing coverage and clear instructions on what it will take to stay insured, according to Consumer Watchdog.

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