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Bill

SB 1301

Residential property insurance: nonrenewals.

2025-2026 Regular Session Introduced by Ben Allen and 5 co-sponsors

SB 1301 restricts California insurers' ability to non-renew residential property policies, requiring they maintain existing coverage unless specific conditions are met.

Read second time and amended. Re-referred to Com. on APPR.
#residentialpropertyinsurance #nonrenewals
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WeVote Research Nonpartisan
Bill Summary · SB 1301

Legislative bill overview

SB 1301 imposes new restrictions on California insurance companies' ability to non-renew residential property insurance policies. The bill limits when and how insurers can decline to renew coverage for homeowners, requiring them to meet specific conditions before terminating policies. This addresses the ongoing residential insurance crisis where major carriers have stopped writing new policies and are non-renewing existing customers at high rates.

Why is this important

California's insurance market has experienced severe instability, with companies like State Farm and others exiting the market or dramatically reducing new policy issuance, leaving hundreds of thousands of homeowners unable to find affordable coverage. Non-renewal restrictions directly affect homeowners' ability to maintain property insurance—a requirement for mortgage lending and financial stability. The bill attempts to stabilize the market by keeping insurers engaged with existing customers rather than abandoning the market.

Potential points of contention

  • Insurer profitability concerns: Restrictions on non-renewals could force companies to keep unprofitable policies, potentially driving remaining insurers out of California or requiring substantial rate increases
  • Risk management vs. consumer protection: Insurers argue non-renewals allow them to manage catastrophic wildfire exposure; consumer advocates argue this shifts risk unfairly to homeowners
  • Market viability: Unclear whether restrictions alone address underlying issues (inadequate rates approved by regulators, climate risk concentration) or simply delay insurers' market exits

Compiled from official sources — confirm details with the bill’s official record.

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