California lawmakers are advancing a bill that would tighten rules around wildfire-related non-renewals.
State senators from Northern and Southern California introduced the measure roughly a year after Los Angeles County experienced the costliest insured wildfire in state history.
The proposal would require insurers to provide six months’ notice before declining to renew a homeowners policy and to explain the specific reason for the decision.
Ben Allen said insurers seeking to non-renew would need to outline the underlying risk factors. If the issue involves defensible space or vegetation management, homeowners would receive an opportunity to address the concern before losing coverage.
The bill focuses on transparency and remediation. Homeowners would gain clarity on whether a cited risk factor sits within their control. If so, they could take corrective action and potentially preserve coverage.
Wildfire exposure has reshaped California’s homeowners market. Insurers have reduced new writings and non-renewed policies in high-risk zones as catastrophe losses and reinsurance costs rise.
For buyers in fire-prone regions, coverage availability has become a gating issue in real estate transactions.
Consumer Watchdog worked with lawmakers on the legislation.
Executive Director Carmen Balber said the proposal centers on disclosure and procedural fairness, requiring insurers to communicate clearly and provide a chance to cure deficiencies tied to property conditions.
According to Beinsure, mandated notice periods and cure rights could alter underwriting timelines and portfolio risk management in wildfire-exposed counties.
Insurers would retain authority to manage risk, though under tighter procedural guardrails.
The bill now moves through the legislative process, where wildfire modeling, underwriting discretion and consumer protections will collide in debate.
