California Proposes Bill to Limit Fire Insurance Drops

New legislation would require insurers to give homeowners more notice and a chance to address issues before canceling policies.

Published on Feb. 25, 2026

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California state senators have introduced a new bill that would make it more difficult for insurance companies to drop policyholders due to fire risk. The proposed legislation would require insurers to provide homeowners with at least six months' notice before non-renewing a policy and to specify the reasons for the non-renewal, giving the homeowner a chance to address any issues like lack of defensible space around the home.

Why it matters

In recent years, homeowners in fire-prone areas of California have faced challenges obtaining and maintaining fire insurance coverage as insurers have become more reluctant to insure properties at high risk. This new bill aims to provide greater transparency and consumer protections around the non-renewal process, helping homeowners maintain critical fire insurance coverage.

The details

The proposed bill, which was developed with input from the advocacy group Consumer Watchdog, would require insurance companies to give policyholders at least six months' notice before non-renewing a policy and to specify the reasons for the non-renewal. This would give homeowners an opportunity to address any issues, such as creating defensible space around the home, in order to keep their coverage.

  • The bill was introduced by state senators from Northern and Southern California in February 2026.
  • The proposed legislation comes roughly a year after the costliest wildfire in terms of insurance losses in California's history struck Los Angeles County.

The players

Ben Allen

A California state senator who is co-sponsoring the proposed fire insurance bill.

Consumer Watchdog

An advocacy group that worked with state senators on developing the fire insurance legislation.

Carmen Balber

The executive director of Consumer Watchdog, which supported the proposed bill.

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What they’re saying

“The bill basically says if you're trying to non-renew somebody, you've got to give them six months notice and you've got to give them some indication as to why they're being dropped.”

— Ben Allen, California State Senator (nbcbayarea.com)

“This legislation simply requires insurance companies to provide greater disclosure to consumers about the reasons for non-renewal and give them a chance to fix it so they can keep their coverage.”

— Carmen Balber, Executive Director, Consumer Watchdog (nbcbayarea.com)

What’s next

The proposed fire insurance bill will now go through the California state legislative process, with hearings and votes in the state Senate and Assembly before potentially being signed into law by the governor.

The takeaway

This new legislation aims to provide more transparency and consumer protections around the fire insurance non-renewal process in California, helping homeowners maintain critical coverage in fire-prone areas of the state.