New California Legislation Would Give Consumers New Paths to Keep Home Insurance Coverage, Says Consumer Watchdog

SACRAMENTO, Calif., Feb. 20, 2026 /PRNewswire/ -- New legislation, SB 1301 by Senator Ben Allen, was introduced today to help homeowners and renters avoid nonrenewal and keep their home insurance. The bill is cosponsored by Consumer Watchdog and the Eaton Fire Survivors Network to strengthen transparency and create a path to maintain coverage for fire survivors and consumers across the state. 

SB 1301 would require property insurance companies to give six months notice before nonrenewing a policy, clearly disclose the reasons for nonrenewal and any information used to make that decision, and give consumers time to make repairs that would qualify them to keep their coverage. The bill would also prevent insurance companies from nonrenewing a home, condo or renters policy simply because a consumer inquired about a claim, filed a claim that wasn't paid, or had a paid claim for an issue that is resolved.

"Insurance companies have rules about what homes they cover but families losing coverage never get a chance to meet them. Too many Californians have lost their insurance coverage without explanation, because of bad information or simply because they filed a claim. SB 1301 gives consumers information they can act on to keep their policy, and a right to use their insurance without losing it," said Carmen Balber, executive director of Consumer Watchdog.

California ranks 4th highest in the nation for non-renewals, according to a Congressional investigation in December of 2024, and the FAIR Plan, consumers' last resort when they cannot get coverage in the private market, has seen enrollment double in just two years.

"Property insurance is a foundational pillar that safeguards the wellbeing of residents everywhere," said Senator Allen. "Too many Californians are losing this critical support system without a proper explanation or opportunity to retain coverage, unnecessarily risking their livelihoods. SB 1301 will put an end to that."

"This is about keeping families in our homes. Right now, people are being dropped without warning or explanation, left scrambling and scared. Californians deserve a fair chance to stay insured and protect the life we've built," said Joy Chen, executive director of the Eaton Fire Survivors Network.

A constant complaint from consumers is that home insurance nonrenewal letters are vague, rarely include documentation, and don't provide a path to maintain coverage, said Consumer Watchdog. This opaqueness makes compliance impossible for policyholders, and allows insurers to drop policies for safe homes without accountability. 

One San Francisco homeowner's experience shows the need for the bill. The teacher and school bus driver was dropped by her insurance company for algae and mold on her roof according to Google Earth. She hired an inspector that certified no issues on the roof or chimney, yet was still dropped.

Polling by FM3 Research in October 2025 shows 81% of California voters strongly support requiring insurance companies to provide a policy owner with a documented reason for cancellation or non-renewal, and the right to appeal a cancellation or non-renewal

The legislation will:

• Give homeowners six months' notice if their insurance will be nonrenewed.
• Require disclosure of specific reasons from insurer underwriting guidelines for the nonrenewal, and any information used to make that decision including details about wildfire risk.
• Require a clear explanation of any repairs that would qualify a homeowner for renewal.
• Give policyholders more time to make home repairs, provide new information, or appeal incorrect information to keep their insurance. 
• Prevent insurance companies for non-renewing or denying coverage because a policyholder inquires about a claim, makes a claim the insurer does not pay, or makes a claim for which the policyholder wasn't at fault and the risk of loss has been removed.

Consumer Watchdog is supporting or co-sponsoring several other bills addressing home insurance claims, access and affordability this year.

SB 877 (Pérez), cosponsored by Consumer Watchdog and the Eaton Fire Survivors Network, helps consumers challenge claim underpayments by requiring insurers to disclose all original loss estimates and all revisions so homeowners can see how their payout was calculated, what changes were made, and why.

SB 878 (Pérez), cosponsored by Consumer Watchdog and the Eaton Fire Survivors Network, strengthens existing laws on claim delays by imposing a 20% interest penalty when insurers don't make payments on time and eliminating insurers' incentive to stay silent on portions of a claim.

SB 1076 (Pérez), cosponsored by Consumer Watchdog and the Eaton Fire Survivors Network, would require insurance companies to offer and renew coverage for homeowners who make their homes fire-safe.

SB 982 (Wiener), the Affordable Insurance and Recovery Act, would help make home insurance affordable and available in California. It would allow the Attorney General to take large oil and gas corporations to court to hold them accountable and return funds to Californians, who are currently bearing these costs through high insurance premiums.

AB 1642 (Harabedian) would establish statewide science-based standards for post-fire home testing and clearance. 70% of survivors whose homes have been tested have found contaminants above acceptable levels yet the largest hurdle to completing remediation is that insurance will not cover it, according to a Department of Angels survey.

SOURCE Consumer Watchdog