Residential property insurance: cancellations and nonrenewals.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill extends the time an insurance company must allow a homeowner to rebuild after a wildfire before canceling or refusing to renew their residential property insurance policy. Currently, insurers must renew coverage for two years after a state of emergency declaration, but this bill increases that timeframe to three years, or 36 months. It also extends the moratorium on cancellations to two years in areas affected by wildfires.
Key provisions
- Extends the nonrenewal moratorium for residential property insurance after a wildfire-related state of emergency from one year to two years.
- Increases the renewal period for residential property insurance after a disaster from two to three years (36 months).
- Requires insurers to consult with homeowners regarding coverage needs during the rebuilding process.
- Specifies that insurers cannot cancel a policy solely based on a property's location in a wildfire-affected area.
- Defines the ‘fire perimeter’ for cancellation purposes, to be determined by the Department of Forestry and Fire Protection.
- Addresses specific circumstances where cancellation may be permitted, such as willful negligence or significant risk changes.
- Makes technical changes to a section related to crop insurance adjuster licensing.
- Clarifies the definition of ‘policy of residential property insurance’.
Who is affected
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Sponsors
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