> ## Content Index
> Fetch the complete content index at: https://www.smdp.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# New law aims to protect Californians from losing home insurance coverage
- URL: https://www.smdp.com/new-law-aims-to-protect-californians-from-losing-home-insurance-coverage/
- Published: 2026-10-09T18:59:00.000Z
- Updated: 2026-10-09T18:58:59.000Z
- Author: Maaz Alin
- Tags: Government & Politics, California

A bill by state Sen. Ben Allen, D-Pacific Palisades, has been signed into law to help more Californians at risk of losing coverage on the private insurance market.

[SB 1301](https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill%5Fid=202520260SB1301&ref=smdp.com) requires insurers to explain why they are dropping a policyholder, including by identifying a specific risk to the property. Insurers must then give the policyholder a chance to keep coverage by addressing that risk to meet the insurer's underwriting standards.

"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," Allen said. "With this new law, we will soon have commonsense protections that will prevent more people from being wrongfully or unnecessarily dropped by their insurer."

Insurers must send a nonrenewal notice to tell a policyholder they will not cover a property beyond the current contract term. Californians have faced the[ ](https://abc7news.com/post/california-home-insurance-renewals-here-are-top-bay-area-neighborhoods-affected/15846687/?ref=smdp.com)[fourth-highest rate](https://abc7news.com/post/california-home-insurance-renewals-here-are-top-bay-area-neighborhoods-affected/15846687/?ref=smdp.com) of nonrenewal in the country, and the notices often give little to no explanation. That can leave people scrambling for new coverage. Many are forced onto the heavily subsidized FAIR Plan, which has more than tripled its total exposure since 2022.

The added transparency will help consumers contest[ ](https://abc7news.com/post/bizarre-list-reasons-insurance-companies-dropped-california-homeowners-neighbors-toilet/15973925/?ref=smdp.com)[documented instances](https://abc7news.com/post/bizarre-list-reasons-insurance-companies-dropped-california-homeowners-neighbors-toilet/15973925/?ref=smdp.com) of faulty reasoning, such as mold or algae on a roof that never existed. It will also guide owners to take steps that lower their property's risk.

The law extends the required notice period to 90 days, with more time for people renovating their property to address a risk. That gives owners more time to fix their property or shop for new coverage before turning to the FAIR Plan.

The law also bars nonrenewals based solely on a policyholder inquiring about an existing claim, filing a claim that is not payable or within the deductible, or filing a claim not covered by the policy.

"SB 1301 gives families more notice before losing coverage and clear instructions on what it will take to stay insured," said Carmen Balber, executive director of Consumer Watchdog.

"This law says Californians deserve to be treated like customers, not liabilities to be shed," said Joy Chen, executive director of Every Fire Survivor's Network.

The protections take effect Jan. 1, 2028.

Edited by SMDP Staff