California Bill Aims to Enhance Home Insurance Consumer Rights

SACRAMENTO, Calif. – February 20, 2026 – New legislation, Senate Bill 1301 (SB 1301), was introduced today to strengthen transparency and provide homeowners and renters with greater protections against nonrenewal of their property insurance policies. The bill, cosponsored by Consumer Watchdog and the Eaton Fire Survivors Network, seeks to address growing concerns about insurance coverage in the state.

Addressing Nonrenewal Concerns

SB 1301 aims to help Californians avoid unexpected policy nonrenewals and maintain continuous home insurance coverage. According to a Congressional investigation in December 2024, California ranks fourth highest in the nation for non-renewal rates. The FAIR Plan, a state-backed insurance option for those unable to secure coverage in the private market, has seen enrollment double in just two years, highlighting the increasing difficulty consumers face in obtaining and maintaining insurance.

Key Provisions of SB 1301

The legislation includes several key provisions designed to protect policyholders:

• Six-Month Notice: Insurance companies would be required to provide policyholders with six months’ notice before nonrenewing a policy.
• Reason Disclosure: Insurers must clearly disclose the specific reasons for nonrenewal and provide any information used in the decision-making process, including details related to wildfire risk.
• Repair Guidance: The bill mandates a clear explanation of any repairs or actions a homeowner could accept to qualify for policy renewal.
• Appeal Rights: Policyholders would have more time to make home repairs, provide new information, or appeal incorrect information to potentially retain their insurance coverage.
• Protection Against Claim-Related Nonrenewal: SB 1301 would prevent insurance companies from nonrenewing or denying coverage simply because a policyholder inquired about a claim, filed a claim that wasn’t paid, or filed a claim for which they weren’t at fault and the risk of loss has been removed.

Consumer and Legislative Support

“Insurance companies have rules about what homes they cover but families losing coverage never get a chance to meet them,” said Carmen Balber, executive director of Consumer Watchdog. “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.”

Senator Ben Allen stated, “Property insurance is a foundational pillar that safeguards the wellbeing of residents everywhere. 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.”

Joy Chen, executive director of the Eaton Fire Survivors Network, added, “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.”

Additional Legislation

Consumer Watchdog is similarly supporting other bills addressing home insurance issues, including:

• SB 877 (Pérez): Requires insurers to disclose all original loss estimates and revisions when addressing claim underpayments.
• SB 878 (Pérez): Imposes a 20% interest penalty on insurers for delayed claim payments.
• SB 1076 (Pérez): Requires insurance companies to offer and renew coverage for homeowners who make their homes fire-safe.
• SB 982 (Wiener): Aims to make home insurance more affordable and available by holding oil and gas corporations accountable for related costs.
• AB 1642 (Harabedian): Establishes statewide science-based standards for post-fire home testing and remediation.

SB 1301 represents a significant step towards enhancing consumer rights and stability in the California home insurance market.