California extends home insurance nonrenewal notice starting in 2028

Starting January 1, 2028, insurers must give covered policyholders a nonrenewal notice at least 90 days before the policy expires. This applies to residential property policies covered by Section 675, with the stated notice exceptions for personal watercraft and personal umbrella policies. The notice must explain the reasons for nonrenewal in plain language and include information used for the decision. If the policyholder asks, the insurer must provide relied-on inspection findings or reports within 15 days. Personal watercraft and personal umbrella policies have a 75-day notice period and do not need the detailed basis and dispute-right information. The notice period applies beginning January 1, 2028. If an insurer misses the required nonrenewal notice, the current policy stays in effect for 90 days after the notice is delivered or mailed.

Insurers must tell policyholders how they can address a remediable property problem that keeps a policy from meeting renewal guidelines. This applies when a policy fails the insurer’s guidelines because of a condition the policyholder can remedy. The insurer must give the notice at least 120 days before the policy expires and explain which repair, property change, or additional information would qualify the policy for renewal. A repair, change, or information that follows the explanation and is verified by the insurer qualifies the policyholder for renewal. These requirements apply beginning January 1, 2028.

Insurers may not refuse to renew a residential policy solely because of specified claims or a policyholder’s past inquiry about insurance. These rules apply to residential property insurance policies covered by Section 675. Covered claims include unpaid or nonpayable claims, claims within the deductible, uncovered claims, claims about property no longer owned by the applicant or policyholder, and certain losses whose risks have been addressed. The protections for unpaid claims and claims within the deductible do not apply after at least three claims about the same damage, defect, or property condition in the previous three years. These protections apply beginning January 1, 2028.

Insurers may not rely solely on roof age when issuing, renewing, or deciding eligibility for a residential policy if the inspection condition is met. This applies to residential property insurance policies covered by Section 675. The policyholder must obtain and pay for an independent roof inspection confirming at least five years of useful life. Insurers may still consider roof age along with other factors. This rule applies beginning January 1, 2028.

Insurers must report certain policy and renewal counts to the insurance commissioner, who must publish combined results. The reports cover residential property policies written in California. Reports must count policies receiving specified notices and whether policyholders’ proposed fixes led to renewal. Insurers must list results by county and ZIP Code and need not resubmit information already provided for that calendar year. Insurers must report by April 1, 2029, and each year after; the commissioner must publish by September 1, 2029, and each year after.