AMENDED IN ASSEMBLY AUGUST 13, 2026

AMENDED IN ASSEMBLY JUNE 25, 2026

AMENDED IN ASSEMBLY JUNE 18, 2026

AMENDED IN SENATE MAY 14, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Senator Allen

(Coauthor: Senator Wiener)

February 20, 2026

An act to amend, repeal, and add Section 678 of, and to add Sections 676.11, 676.12, 676.13, and 676.14 to, the Insurance Code, relating to insurance.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including residential property insurance. Existing law requires an insurer to deliver to the named insured an offer of renewal, as specified, at least 45 days before the policy expiration and to deliver a notice of nonrenewal at least 75 days before the policy expiration. If the insurer fails to do so, existing law requires the existing policy, with no change in its terms and conditions, to remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the named insured. Existing law requires nonrenewal notices to contain specified information.

This bill would, beginning January 1, 2028, require an insurer to either deliver to the named policyholder an offer of renewal or a notice of nonrenewal or a notice of renewal with a reduction of limits or an elimination of coverage under of the policy at least 90 days before the policy expiration. expiration, except as provided. The bill would require the notice to contain specified information, including all information related to the basis for the nonrenewal or the reduction of limits or elimination of coverage, nonrenewal, as specified. If the insurer fails to deliver an offer or notice a notice of nonrenewal to the named policyholder, the bill would require the existing policy to remain in effect for 90 days from the date the offer of renewal is delivered or the notice of nonrenewal or notice of renewal with a reduction of limits or an elimination of coverage is delivered. If an insurer finds that a policy does not meet its underwriting guidelines due to a condition that can be remedied by the policyholder, the bill would require the insurer to deliver or mail to the named policyholder a notice at least 120 days before the policy expiration that includes an explanation of any remediation, additional information, or other change to the property that would qualify the policyholder to obtain renewal of the policy or to maintain the existing limits or coverage of the policy.

This bill would, beginning January 1, 2028, require an insurer that refuses to renew a policy or imposes a reduction of limits or an elimination of coverage to provide the policyholder with a detailed, plain language explanation of the grounds for the nonrenewal or reduction of limits or elimination of coverage and, upon request, all nonproprietary information relating to the decision of nonrenewal or reduction of limits or elimination of coverage, as specified. and all nonaerial imagery relied upon as a basis for the decision. The bill would require, upon request and within 15 days of that request, an insurer to provide any property inspection findings or property inspection reports relied upon as a basis for the decision. If an insurer finds that a policy does not meet its underwriting guidelines due to a condition that can be remedied by the policyholder, the bill would require the insurer to provide the policyholder with a period of not less than 90 days to perform the necessary remediation or other change to the property or to provide additional information. The bill would prohibit an insurer from refusing to issue or renew, or determine eligibility for, renew a residential property insurance policy solely on the basis of certain claims, on the basis of the policyholder’s previous inquiry, or on the basis of the age of the roof under certain circumstances.

On or before April 1, 2029, and annually thereafter by that date, this bill would require an insurer to submit to the commissioner a report for the previous calendar year containing specified information, including the number of policies for which the insurer elected not to renew or imposed a reduction of limits or an elimination of coverage. information. On or before September 1, 2029, and annually thereafter by that date, the bill would require the commissioner to prepare and publish on the department’s internet website an aggregated report for the previous calendar year of the information reported by insurers.

The people of the State of California do enact as follows:

SECTION 1.

Section 676.11 is added to the Insurance Code, to read:

676.11.

(a) This section applies only to residential property insurance policies specified in Section 675.

(b) (1) An insurer that refuses to renew a policy or imposes a reduction of limits or an elimination of coverage shall provide the policyholder with a detailed, plain language explanation of the grounds for the nonrenewal or the reduction of limits or elimination of coverage. Upon request, the insurer shall also, within 15 days of the request, provide the policyholder with all nonproprietary information relating to the decision of nonrenewal or reduction of limits or elimination of coverage, including, but not limited to, all nonaerial imagery or other documentation relating to the decision and all sources of such information, nonaerial imagery, and documentation. nonrenewal. An insurer shall also provide the policyholder with all nonaerial imagery relied upon as a basis for the decision and, upon request and within 15 days of that request, any property inspection findings or property inspection reports relied upon as a basis for the decision.

(2) (A) If the nonrenewal is due in whole or in part to an assessment of the wildfire risk associated with the property, the insurer shall provide the policyholder with their wildfire risk score or other wildfire risk classification, including the following, as applicable:

(i) A plain language description of each property-specific characteristic that led to the determination.

(ii) A plain language description of each surrounding area characteristic that led to the determination, including a map of those characteristics in any parcel larger than the property size used to assess the property’s wildfire risk and the property’s placement within it. determination.

(B) This paragraph does not require the insurer to provide information that they provide to the policyholder in connection with the wildfire risk score or other wildfire risk classification pursuant to Section 2644.9 of Title 10 of the California Code of Regulations.

(c) (1) If an insurer finds that a policy does not meet its underwriting guidelines due to a condition that can be remedied by the policyholder, the insurer shall shall, at least 120 days before the policy expiration, provide the policyholder with both of the following:

(A) A detailed, plain language explanation of any remediation, additional information, information to provide, or other change to the property that is consistent with the insurer’s underwriting guidelines and that would qualify the policyholder to obtain renewal of the policy or to maintain the existing limits or coverage of the policy, along with a detailed, plain language explanation of the action to be taken by the policyholder or the additional information to be provided by the policyholder. policy, along with direction on how to provide evidence of that action or other change, or the information.

(B) A period of not less than 90 days to perform the necessary remediation or other change to the property or to provide additional information.

(2) An insurer may contact the policyholder to verify that the policyholder will be performing remediation or another change to their property pursuant to this subdivision.

(3) Following any efforts of remediation, the policyholder shall furnish the insurer evidence of remediation. If the insurer seeks additional verification, the insurer may perform an onsite physicalinspection or virtual inspection of the property to verify remediation at the insurer’s expense.

(4) Remediation, additional information, or other change to the property completed in accordance with the explanation provided to the policyholder under subparagraph (A) of paragraph (1) that is verified by the insurer shall qualify the policyholder for renewal of the policy or to maintain existing limits or coverage. policy.

(5) The insurer shall issue a written determination within 15 days of receipt of additional information or evidence of any remediation or other change to the property.

(d) (1) The insurer shall provide a policyholder a reasonable opportunity to dispute, or to correct or amend any inaccurate or incomplete information relied upon by the insurer in connection with, a decision to not renew or to impose a reduction of limits or an elimination of coverage of a policy.

(2) A If the dispute concerns the condition of the property, a policyholder may request that the insurer conduct an onsite physical inspection of the property to verify the information relied upon by the insurer in connection with a decision to not renew or to impose a reduction of limits or an elimination of coverage of a policy. a policy. The policyholder may, at their sole discretion, use a process made available by the insurer other than an in-person physical inspection to verify the accuracy, persistence, and validity of the conditions pertaining to the decision to terminate coverage.

(e) This section shall become operative on January 1, 2028.

SEC. 2.

Section 676.12 is added to the Insurance Code, to read:

676.12.

(a) This section applies only to residential property insurance policies specified in Section 675.

(b) On or before April 1, 2029, and annually thereafter by that date, an insurer shall submit to the commissioner a report for the previous calendar year containing the following information for policies written in California:

(1) The number of policies in each of the following categories:

(A) The number of policies for which the insurer provided the policyholder with an explanation of any remediation, additional information, or other change to the property that is consistent with the insurer’s underwriting guidelines and that would qualify the policyholder to obtain renewal of the policy or to maintain the existing limits or coverage of the policy, pursuant to subdivision (c) of Section 676.11. a notice pursuant to subdivision (b) of Section 678.

(B) The number of policies for which the policyholder performed any of the actions described in subparagraph (A) and whether those actions resulted in a renewal of the policy or a nonrenewal of the policy. provided the insurer evidence of any of the actions described in the notice provided under subdivision (b) of Section 678 and whether those actions resulted in a renewal of the policy.

(c) The policy information reported pursuant to subdivision (b) shall be listed by county and ZIP Code.

(e) On or before September 1, 2029, and annually thereafter by that date, the commissioner shall prepare and publish on the department’s internet website an aggregated report for the previous calendar year of all information reported by insurers pursuant to subdivision (b).

(f) This section shall become operative on January 1, 2028.

SEC. 3.

Section 676.13 is added to the Insurance Code, to read:

676.13.

(a) (1) An insurer shall not refuse to issue or renew, or determine eligibility for, renew a residential property insurance policy solely on the basis of any of the following claims by the applicant or policyholder or any previous owner or occupant of the property to be insured:

(A) A claim that is filed but is not paid or payable.

(B) A claim that is within the claimant’s deductible.

(C) A claim that is not covered by the policy.

(D) A claim concerning a property that is no longer owned by the applicant or policyholder.

(E) A claim by the applicant or policyholder in which the loss was not the direct result of intentional conduct or gross negligence by the applicant or policyholder and for which the risk of loss has been mitigated through the removal of the hazard, the repair of the damage or defect, or other changes to the property or to the condition that caused the loss.

(2) Subparagraphs (A) and (B) of paragraph (1) do not apply if the applicant or policyholder has had at least three claims regarding the same damage, defect, or other condition of the property over the previous three years.

(b) An insurer shall not refuse to issue or renew, or determine eligibility for, renew a residential property insurance policy based in whole or in part on whether a policyholder has previously inquired about the insurance policy, including, but not limited to, an inquiry concerning the scope or nature of coverage available under the policy.

(c) For purposes of this section, “residential property insurance” means the insurance described in subdivision (a) of Section 675.

(d) This section shall become operative on January 1, 2028.

SEC. 4.

Section 676.14 is added to the Insurance Code, to read:

676.14.

(a) Beginning January 1, 2028, an insurer shall not refuse to issue or renew, or determine eligibility for, a residential property insurance policy solely on the basis of the age of the roof if the policyholder obtains and pays for an independent inspection of the roof that confirms at least five years of useful roof life remaining.

(b) This section does not prohibit an insurer from taking into consideration the age of the roof when issuing or renewing, or determining eligibility for, a residential property insurance policy.

(c) For purposes of this section, “residential property insurance” means the insurance described in subdivision (a) of Section 675.

(d) This section shall become operative on January 1, 2028.

SEC. 5.

Section 678 of the Insurance Code is amended to read:

678.

(a) (1) At least 45 days before the policy expiration, an insurer shall deliver to the named insured or mail to the named insured at the address shown in the policy, either of the following:

(A) An offer of renewal of the policy contingent upon payment of premium as stated in the offer, stating each of the following:

(i) Any reduction of limits or elimination of coverage. That reduction of limits or elimination of coverage shall identify the specific limits being reduced or coverage being eliminated by the offer of renewal. The elimination of coverage for the previously covered peril of fire shall be subject to subdivision (b) of Section 10103.6.

(ii) The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the renewal offer.

(B) A notice of nonrenewal of the policy. That notice shall contain all of the following:

(i) The specific reason or reasons for the nonrenewal.

(ii) The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the notice of nonrenewal.

(iii) Until July 1, 2020, a brief statement indicating that if the consumer has contacted the insurer to discuss the nonrenewal and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the telephone number of the unit within the department that responds to consumer inquiries and complaints.

(iv) On or after July 1, 2020, a statement that if the consumer has contacted the insurer to discuss the nonrenewal and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the department’s internet website, www.insurance.ca.gov, the department’s telephone number, (800) 927-HELP (4357), and the mailing address of the department’s Consumer Services Division, 300 S. Spring Street, Los Angeles, CA 90013.

(2) On and after July 1, 2022, the time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if an offer or notice is mailed.

(b) If an insurer fails to give the named insured either an offer of renewal or notice of nonrenewal as required by this section, the existing policy, with no change in its terms and conditions, shall remain in effect for 45 days from the date that either the offer to renew or the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by the insurer to the named insured with the policy or the notice of renewal or nonrenewal.

(c) Notwithstanding subdivisions (a) and (b), with respect to a notice of nonrenewal for a policy that expires on or after July 1, 2020, the following timelines apply:

(1) At least 75 days before the policy expiration, the insurer shall deliver the notice of nonrenewal to the named insured or mail the notice of nonrenewal to the named insured at the address shown in the policy. The notice shall include the information contained in subparagraph (B) of paragraph (1) of subdivision (a). On and after July 1, 2022, the time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if a notice is mailed.

(2) If an insurer fails to give the named insured a notice of nonrenewal at least 75 days before the policy expiration, as required by paragraph (1), the existing policy, with no change in its terms and conditions, shall remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by the insurer to the named insured with the notice of nonrenewal.

(d) A policy written for a term of less than one year shall be considered as if written for a term of one year. A policy written for a term longer than one year, or a policy with no fixed expiration date, shall be considered as if written for successive policy periods or terms of one year.

(e) A notice of nonrenewal for a residential property insurance policy expiring on or after July 1, 2021, shall be accompanied by the following notice:

The California Department of Insurance has developed the California Home Insurance Finder, an online tool that can assist you in obtaining insurance for your home. The Finder contains names, addresses, telephone numbers, and internet website links of licensed insurance agents, brokers, and insurance companies that may be able to sell insurance to you. The Finder is organized by ZIP Code and the languages in which the agent, broker, or insurance company sells insurance.

The California FAIR Plan (FAIR Plan) provides basic property insurance as the “insurer of last resort” if you cannot find insurance coverage for your property in the normal (voluntary) insurance market. The FAIR Plan provides basic property insurance coverage for residential structures, as well as personal property coverage for residential and business occupancies. However, FAIR Plan policies may not cover liability, theft, or water damage, among other things. There are also optional coverages available for both residential properties. Applications can be made directly with the FAIR Plan (cfpnet.com), although the FAIR Plan strongly encourages use of a licensed agent or broker for assistance in preparing and obtaining a quote. There is no additional cost for using an agent or broker for purchasing a FAIR Plan policy.

California law requires an agent or broker to assist a person seeking a FAIR Plan policy by (1) submitting a coverage application to the FAIR Plan on behalf of the consumer, (2) providing the consumer the FAIR Plan’s internet website address and toll-free telephone number, or (3) obtaining a policy for the consumer through an admitted or nonadmitted insurer.

To supplement a FAIR Plan policy, a Difference in Conditions (DIC) policy should be considered. A DIC policy is sold by some private insurers, and provides coverage for things not covered by the basic property insurance policy provided by the FAIR Plan. A consumer who wants broader coverage than that provided by the FAIR Plan policy should contact an agent, broker, or insurance company that offers a DIC policy to obtain this additional coverage. The Department of Insurance maintains a list of insurance companies that sell DIC policies on its internet website (insurance.ca.gov). Additional assistance may be obtained by contacting an agent or broker listed with the department’s online agent locator.

(f) An insurer may use a notice substantially similar to the notice set forth in subdivision (e) to the extent that the notice provides additional or more detailed information.

(g) This section applies only to policies of insurance specified in Section 675.

(h) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.

SEC. 6.

Section 678 is added to the Insurance Code, to read:

678.

(a) An insurer shall do either of the following:

(1) At least 90 45 days before the policy expiration, an insurer shall deliver to the named policyholder or mail to the named policyholder at the address shown in the policy an offer of renewal of the policy contingent upon payment of premium as stated in the offer. That notice shall state the telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the renewal offer. policy, an offer of renewal of the policy contingent upon payment of premium as stated in the offer, stating each of the following:

(2) (A) At least 90 days before the policy expiration, an insurer shall deliver to the named policyholder or mail to the named policyholder at the address shown in the policy a notice of nonrenewal of the policy or a notice of renewal with a reduction of limits or an elimination of coverage under the policy. That notice shall contain all of the following:

(i) All information related to the basis for the nonrenewal or the reduction of limits or elimination of coverage, nonrenewal, as required by subdivision (b) of Section 676.11.

(ii) A detailed, plain language explanation of the policyholder’s right to dispute, or to correct or amend any inaccurate or incomplete information relied upon by the insurer in connection with, the decision to not renew the policy or to impose a reduction of limits or an elimination of coverage of a policy, as provided in subdivision (d) of Section 676.11.

(iii) The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the notice of nonrenewal.

(iv) A statement that if the consumer has contacted the insurer to discuss the nonrenewal and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the department’s internet website, www.insurance.ca.gov, the department’s telephone number, (800) 927-HELP (4357), and the mailing address of the department’s Consumer Services Division, 300 S. Spring Street, Los Angeles, CA 90013.

(b) If an insurer finds that a policy does not meet its underwriting guidelines due to a condition that can be remedied by the policyholder, the insurer shall deliver to the named policyholder or mail to the named policyholder at the address shown in the policy a notice of the following at least 120 days before the policy expiration:

(1) A detailed, plain language explanation of any remediation, additional information, or other change to the property that would qualify the policyholder to obtain renewal of the policy or to maintain the existing limits or coverage of the policy, and a full description of all of the policyholder’s rights as provided in Section 676.11.

(2) A detailed, plain language disclaimer that, in 30 days, the policyholder will receive a notice of nonrenewal of the policy or a notice of renewal with a reduction of limits or elimination of coverage under the policy that will take effect on the policy’s expiration date if the policyholder does not perform the necessary remediation or other change to the property or provide additional information to meet the insurer’s underwriting guidelines.

(3) The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the notice of nonrenewal.

(4) A statement that if the consumer has contacted the insurer to discuss the notice required by this subdivision and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the department’s internet website, www.insurance.ca.gov, the department’s telephone number, (800) 927-HELP (4357), and the mailing address of the department’s Consumer Services Division, 300 S. Spring Street, Los Angeles, CA 90013.

(c) On and after January 1, 2028, the time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if an offer or notice is mailed.

(d) If an insurer fails to give the named policyholder an offer of renewal as required by this section, the existing policy, with no change in its terms and conditions, shall remain in effect for 90 45 days from the date that the offer to renew is delivered or mailed to the named policyholder. A notice to this effect shall be provided by the insurer to the named policyholder with the offer to renew.

(e) If an insurer fails to give the named policyholder a notice of nonrenewal or a notice of renewal with a reduction of limits or an elimination of coverage, nonrenewal, as required by this section, the existing policy, with no change in its terms and conditions, shall remain in effect for 90 days from the date that the notice is delivered or mailed to the named policyholder. A notice to this effect shall be provided by the insurer to the named policyholder with the notice of nonrenewal or the notice of renewal with a reduction of limits or an elimination of coverage. nonrenewal.

(f) A policy written for a term of less than one year shall be considered as if written for a term of one year. A policy written for a term longer than one year, or a policy with no fixed expiration date, shall be considered as if written for successive policy periods or terms of one year.

(g) A notice of nonrenewal for a residential property insurance policy shall be accompanied by the following notice:

The California Department of Insurance has developed the California Home Insurance Finder, an online tool that can assist you in obtaining insurance for your home. The Finder contains names, addresses, telephone numbers, and internet website links of licensed insurance agents, brokers, and insurance companies that may be able to sell insurance to you. The Finder is organized by ZIP Code and the languages in which the agent, broker, or insurance company sells insurance.

The California FAIR Plan (FAIR Plan) provides basic property insurance as the “insurer of last resort” if you cannot find insurance coverage for your property in the normal (voluntary) insurance market. The FAIR Plan provides basic property insurance coverage for residential structures, as well as personal property coverage for residential and business occupancies. However, FAIR Plan policies may not cover liability, theft, or water damage, among other things. There are also optional coverages available for both residential properties. Applications can be made directly with the FAIR Plan (cfpnet.com), although the FAIR Plan strongly encourages use of a licensed agent or broker for assistance in preparing and obtaining a quote. There is no additional cost for using an agent or broker for purchasing a FAIR Plan policy.

California law requires an agent or broker to assist a person seeking a FAIR Plan policy by (1) submitting a coverage application to the FAIR Plan on behalf of the consumer, (2) providing the consumer the FAIR Plan’s internet website address and toll-free telephone number, or (3) obtaining a policy for the consumer through an admitted or nonadmitted insurer.

To supplement a FAIR Plan policy, a Difference in Conditions (DIC) policy should be considered. A DIC policy is sold by some private insurers, and provides coverage for things not covered by the basic property insurance policy provided by the FAIR Plan. A consumer who wants broader coverage than that provided by the FAIR Plan policy should contact an agent, broker, or insurance company that offers a DIC policy to obtain this additional coverage. The Department of Insurance maintains a list of insurance companies that sell DIC policies on its internet website (insurance.ca.gov). Additional assistance may be obtained by contacting an agent or broker listed with the department’s online agent locator.

(h) An insurer may use a notice substantially similar to the notice set forth in subdivision (g) to the extent that the notice provides additional or more detailed information.

(i) This section applies only to policies of insurance specified in Section 675.

(j) This section shall become operative on January 1, 2028.