California bill would force insurers to explain why coverage is ending, and give 90 days to fix it

California homeowners who get a non-renewal notice may eventually learn much more about why their coverage is ending.

Under a proposed state bill, insurers would need to state the reason for the decision and, when the problem can be corrected, give homeowners 90 days to address it before the policy is canceled, according to the Tahoe Daily Tribune.

What's happening?

Senate Bill 1301, proposed by state Sen. Ben Allen, D-El Segundo, would require insurers to be more specific when they decline to renew a homeowners policy.

Examples cited for a non-renewal include a home in a high-fire-risk area or an aging roof.

When the cited issue is something a homeowner can fix, the measure would create a 90-day period for repairs or other upgrades before the cancellation takes effect.

Supporters say that type of explanation and lead time is especially important in California's turbulent insurance market.

"Consumers often have little information about the reason for the nonrenewal, and have no path to correcting a problem before their policy gets cancelled," Carmen Balber, executive director of nonprofit Consumer Watchdog, told The Center Square.

The measure has also drawn pushback from the insurance industry, though recent amendments appear to have eased some of that opposition.

Why does it matter?

For many households, losing homeowners insurance is more than an administrative headache — it can make it harder to protect one of the biggest investments most people will ever make, while also leaving families scrambling for more expensive coverage.

That pressure has been building statewide.

Research published by Stanford University in June and cited by The Center Square found that home insurance premiums in California have climbed 84% since 2020, whether a home is located near a fire zone or not.

The same research found that seven of the state's 10 largest home insurers either reduced or stopped issuing new homeowners policies in California, while average deductibles increased from $1,813 to $2,553 between late 2020 and March 2026.

Balber noted that some non-renewals are tied to wildfire exposure, something homeowners cannot easily amend short of relocating.

"You can't really change that," Balber said.

More time could help homeowners compare options instead of being pushed into last-minute decisions in an already strained market.

What's being done?

At its core, the bill is meant to make non-renewal notices more useful by requiring insurers to explain what prompted the decision and, when possible, provide time to address the problem.

That window could be used to replace an old roof, clear brush, or make other changes that lower risk and may help preserve coverage. 

If the reason cannot be fixed — such as a home's location in or near a fire-prone area — residents would still get earlier notice so they can look for other insurance options.

Industry groups say they remain concerned about how much information insurers would have to disclose.

Mark Sektnan, vice president of the American Property Casualty Insurance Association, told The Center Square that earlier versions of the bill could have allowed homeowners to keep policies for too long without making changes.

Lawmakers and stakeholders are still discussing possible amendments, including whether homeowners should receive community maps showing nearby properties with similar risk factors.

"The truth on this is that we don't necessarily have those maps, and when we do, they're proprietary, so we're kind of working on that," Sektnan admitted.

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