Law Signed to Give California Consumers New Paths to Keep Home Insurance, Says Consumer Watchdog

SACRAMENTO, Calif., Sept. 30, 2026 /PRNewswire/ -- Fire survivors and consumer advocates celebrated final approval of a new law that will help families keep their home insurance coverage. The law, SB 1301 authored by Senator Ben Allen and sponsored by Consumer Watchdog and Every Fire Survivor's Network, is the first in the nation to give consumers a right to know what repairs or mitigation qualify a home to renew insurance. The law requires more notice before a loss of coverage, specific disclosure of the reasons a policyholder may be dropped, and time to conduct home renovations or other changes to stay covered. It was signed by the governor Sunday night. 

"California consumers should not have to live in fear that they'll be next to lose home insurance. SB 1301 gives families more notice before losing coverage and clear instructions on what it will take to stay insured. For the first time ever, consumers will have a right to know the rules upfront so they can act on them. These critical changes will help keep families home and stem the insurance crisis," said Carmen Balber, executive director of Consumer Watchdog. "We want to thank Senator Allen for carrying this important reform, lawmakers for supporting it, and the thousands of wildfire survivors, consumers and organizations who raised their voices to back insurance that works for everyone." 

"Californians are facing more expensive and fewer insurance options to keep their families secure right now, exacerbating the broader affordability crunch we're all feeling," said Senator Ben Allen (D-Santa Monica). "With this new law, we will soon have commonsense protections that will prevent more people from being wrongfully or unnecessarily dropped by their insurer, helping consumers stay privately insured and protected from disaster." 

"Across California, the fear of losing home insurance has changed how people think about the security of their homes," said Joy Chen, Executive Director of Every Fire Survivor's Network. "For too long, consumers have held up our end of the bargain while having far too little power when an insurance company decides to walk away. SB 1301 begins to rebalance that relationship. This law says Californians deserve to be treated like customers, not liabilities to be shed. That matters for every family trying to build a secure future in this state."

Survivors of the L.A. fires and consumers struggling to keep their insurance across the state rallied in support of SB 1301. Nearly one million Californians have been pushed out of their standard home insurance and onto the low-benefit, high-cost FAIR Plan, or into unregulated surplus lines insurance companies. 

Polls show over 90% of Californians support requiring insurance companies to give longer notice before nonrenewal and sufficient time to make improvements to stay insured. 

"SB 1301 would require insurers to clearly state, in writing, what is needed to maintain coverage and give homeowners a real opportunity and time to comply. If those protections had been in place, we would likely still have our policy today," Hollywood homeowner Magda Molina testified to the legislature in support of the bill. She and her partner spent $8,000 on repairs only to be told by the insurance company it wasn't enough to keep their coverage.

Under the new law consumers will get 90 days notice before any nonrenewal, up from the current 75 days. If there is a repair or other change to the home a consumer can make to remain insured, the insurance company must instead give the consumer 120 days notice of the change before nonrenewal. In addition, the bill prohibits nonrenewals based solely on the age of a roof, or for filing certain claims that their home insurance company did not pay. 

40 wildfire survivor, consumer, environmental, civil and economic justice, labor, small business, and community organizations supported the bill.

SOURCE Consumer Watchdog