Annual Notice – Significant California Laws Effective as of the Date of this Notice Pertaining to Residential Property Insurance Policies, including those related to a Declared State of Emergency – 2026

RICARDO LARA

CALIFORNIA INSURANCE COMMISSIONER

NOTICE

TO:

All Residential Property Insurance Companies, Licensed Independent Insurance

Adjusters, Insurance Agents/Brokers, and Other Interested Parties

FROM: Insurance Commissioner Ricardo Lara

DATE: January 9, 2026

RE:

2026 Annual Notice – Significant California Laws Effective as of the Date of this Notice

Pertaining to Residential Property Insurance Policies, including those related to a

Declared State of Emergency

The California Department of Insurance (Department) is required to prepare and deliver to admitted

insurers and licensed insurance adjusters an annual notice describing the most significant California laws

pertaining to property insurance policies, including those related to a declared state of emergency

(California Insurance Code section 14046(a)(1)). The 2026 annual notice is available in the “Education”

section of the Department’s Insurance Adjuster Requirements web page. The Department may also issue

interim updates if significant changes to the law occur during the course of this year. These updates will

also be available on the Department’s website.

Since at least 2007, after major wildfire events, the Department has distributed notices to insurers,

agents/brokers, and adjusters regarding significant California laws that pertain to residential property

insurance policies. These notices focus on wildfire claims and can be found on the Department’s Wildfire

Resources web page.

For claims under a policy of residential property insurance arising as a result of a declared state of

emergency, every residential property insurance company is required to provide the claimant with a copy

of this or the most recent notice no later than 15 calendar days from the date on which the insurer received

notice of the claim

n be found on the Department’s Wildfire

Resources web page.

For claims under a policy of residential property insurance arising as a result of a declared state of

emergency, every residential property insurance company is required to provide the claimant with a copy

of this or the most recent notice no later than 15 calendar days from the date on which the insurer received

notice of the claim. It is expected that all residential property insurers and insurance adjusters will comply

with the following laws for residential property insurance claims related to a state of emergency (California

Insurance Code section 14046(b)).

Important Note: Consult the notice applicable to the date of the pertinent fire or other declared emergency

to determine which laws were applicable at the time of the loss. This notice provides links to each section

of the California Insurance Code summarized below. For additional information, please review the text of

the applicable section of the California Insurance Code.

CALIFORNIA DEPARTMENT OF INSURANCE

PROTECT • PREVENT • PRESERVE

300 Capitol Mall, 17th Floor

Sacramento, California 95814

Tel: (916) 492-3500 • Fax: (916) 445-5280

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SIGNIFICANT CLAIMS AND COVERAGE RELATED LAWS

Actual Cash Value Calculation

Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing

the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time

of the commencement of the fire

: (916) 445-5280

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SIGNIFICANT CLAIMS AND COVERAGE RELATED LAWS

Actual Cash Value Calculation

Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing

the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time

of the commencement of the fire.

Under an open policy that requires payment of actual cash value, the measure of the actual cash value

recovery, in whole or partial settlement of the claim, for either a total or partial loss to the structure or its

contents, shall be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured

less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the

injury or the policy limit, whichever is less. A deduction for physical depreciation shall apply only to

components of a structure that are normally subject to repair and replacement during the useful life of that

structure (California Insurance Code section 2051).

Replacement Cost Value Calculation

Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity

is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a

deduction for physical depreciation, or the policy limit, whichever is less (California Insurance Code section

2051.5(a)).

Time Limit to Collect Full Replacement Cost

An insured will have no less than 12 months (from the date that the first payment toward the actual cash

value is made) to collect the full replacement cost of the loss, subject to the policy limit

ing lost or injured, without a

deduction for physical depreciation, or the policy limit, whichever is less (California Insurance Code section

2051.5(a)).

Time Limit to Collect Full Replacement Cost

An insured will have no less than 12 months (from the date that the first payment toward the actual cash

value is made) to collect the full replacement cost of the loss, subject to the policy limit. In the event of a

loss relating to a “state of emergency,” as defined in California Government Code section 8558, an insured

will have no less than 36 months (from the date that the first payment toward the actual cash value is

made) in order to collect the full replacement cost of the loss, subject to the policy limit. Additional

extensions of six months shall be provided to policyholders for good cause (California Insurance Code

sections 2051.5(b)(1) and (2)).

Proof of Loss Less Than 100 Days After the Loss

In the event of a loss relating to a state of emergency, as defined in California Government Code section

8558, an insurer shall not require the insured to provide proof of loss less than 100 days after the loss

(California Insurance Code section 2051.5(b)(3)(A)).

Submission of Proof of Loss for Good Cause

In the event of a loss relating to a state of emergency, as defined in California Government Code section

8558, the insurer shall provide to the insured one or more additional extensions of three months for

submission of proof of loss for good cause if the insured, acting in good faith and with reasonable diligence,

encounters a delay in providing proof of loss that is beyond the control of the insured. Circumstances

beyond the control of the insured may include, but are not limited to, any of the following, where applicable

to the specific claim:

r more additional extensions of three months for

submission of proof of loss for good cause if the insured, acting in good faith and with reasonable diligence,

encounters a delay in providing proof of loss that is beyond the control of the insured. Circumstances

beyond the control of the insured may include, but are not limited to, any of the following, where applicable

to the specific claim:

(i)

Delays by the insurer in acknowledging the claim or providing the claimant necessary forms,

instructions, and reasonable assistance, including, but not limited to, specifying the information

the claimant must provide for proof of loss.

(ii)

For personal property coverage, the fact that a personal property inventory is premature if the

primary structure has not yet commenced construction.

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(iii)

The unavailability of contractors to either perform the necessary work or create an estimate to

rebuild, repair, or replace.

(iv)

The disability, injury, or incapacity of the insured.

(v)

The inability of the insured to access the insured property as a result of governmental action or

because the insured property is located in an area that is exposed to hazardous materials

posing a health risk California Insurance Code section 2051.5(b)(3)(B)

(

).

Rebuilding in Current Location or Rebuilding or Replacing in a New Location

In the event of a total loss of the insured structure, a policy issued or delivered in this state shall not contain

a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or

to purchase an already built home at a new location, payment of the building code upgrade cost or the

replacement cost, including any extended replacement cost coverage, to the extent those costs are

otherwise covered by the terms of the policy or any policy endorsement

hall not contain

a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or

to purchase an already built home at a new location, payment of the building code upgrade cost or the

replacement cost, including any extended replacement cost coverage, to the extent those costs are

otherwise covered by the terms of the policy or any policy endorsement. However, the measure of

indemnity shall not exceed the replacement cost, including the building code upgrade cost and any

extended replacement cost coverage, if applicable, to repair, rebuild, or replace the insured structure at its

original location (California Insurance Code section 2051.5(c)(1)).

Land Value Deduction

For a residential property insurance policy, the measure of damages available to a policyholder to use to

rebuild or replace the insured home at another location shall be the amount that would have been

recoverable had the insured dwelling been rebuilt at its original location, and a deduction for the value of

land at the new location shall not be permitted from that measure of damages. However, the measure of

indemnity shall not exceed the cost, including the building code upgrade cost and any extended

replacement cost coverage, if applicable, to rebuild the insured structure at its original location (California

Insurance Code section 2051.5(c)(2)).

On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply with this section

in its entirety (California Insurance Code Section 2051.5(e)).

List of Items Covered – Additional Living Expenses (ALE)

If requested by the insured, this section requires insurance companies to provide the insured with a list of

items that an insurer believes would be covered under the policy (California Insurance Code section

2060(a))

d or renewed by an insurer shall comply with this section

in its entirety (California Insurance Code Section 2051.5(e)).

List of Items Covered – Additional Living Expenses (ALE)

If requested by the insured, this section requires insurance companies to provide the insured with a list of

items that an insurer believes would be covered under the policy (California Insurance Code section

2060(a)).

Time Limit to Collect Additional Living Expenses (ALE)

In the event of a covered loss relating to a state of emergency, as defined in California Government Code

section 8558, on and after July 1, 2021, coverage for additional living expenses (or loss of use) shall be

for at least 24 months from the inception of the loss, but shall be subject to other policy provisions. An

insurer shall grant an extension of up to 12 additional months, for a total of 36 months, if an insured acting

in good faith and with reasonable diligence encounters a delay or delays in the reconstruction process that

are the result of circumstances beyond the control of the insured. Circumstances beyond the control of the

insured include, but are not limited to, unavoidable construction permit delays, lack of necessary

construction materials, and lack of available contractors to perform the necessary work. Additional

extensions of six months shall be provided to policyholders for good cause (California Insurance Code

section 2060(b)(1)).

Uninhabitable/Reasonable Habitation (ALE)

If the insured home is rendered uninhabitable by a covered peril, on and after July 1, 2021, a policy that

provides coverage for additional living expenses shall not limit the policyholder’s right to recovery.

ry work. Additional

extensions of six months shall be provided to policyholders for good cause (California Insurance Code

section 2060(b)(1)).

Uninhabitable/Reasonable Habitation (ALE)

If the insured home is rendered uninhabitable by a covered peril, on and after July 1, 2021, a policy that

provides coverage for additional living expenses shall not limit the policyholder’s right to recovery.

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However, an insurer may, in lieu of making living expense payments required by this subdivision, provide

a reasonable alternative remedy that addresses the property condition that precludes reasonable

habitation of the insured premises. The additional living expense coverage subject to this section does not

include a utility public safety power shut off event, which is the deenergization of a portion of the electrical

distribution or transmission system to reduce the risk of wildfire ignition (California Insurance Code section

2060(b)(2)).

Restricted Access by Civil Authority (ALE)

In the event of a state of emergency, as defined in California Government Code section 8558, for a loss

that is otherwise not subject to California Insurance Code sections 2060(b)(1) and (2), that is accompanied

by an order of civil authority restricting access to the home, related to a covered peril, on and after July 1,

2021, additional living expense coverage shall be provided for at least two weeks. Additional extensions

of two weeks shall be provided to a policyholder for good cause, but shall be subject to other policy

provisions (California Insurance Code section 2060(c)).

Additional Living Expense (ALE) Advance Payment

In the event of a covered loss relating to a state of emergency, a defined in California Government Code

section 8558, the following special provision shall apply under a residential property insurance policy:

e provided to a policyholder for good cause, but shall be subject to other policy

provisions (California Insurance Code section 2060(c)).

Additional Living Expense (ALE) Advance Payment

In the event of a covered loss relating to a state of emergency, a defined in California Government Code

section 8558, the following special provision shall apply under a residential property insurance policy:

(1) If an insured has made a claim for additional living expenses related to a total loss, an insurer

shall, upon request by an insured, render an advance payment of no less than four months of living

expenses. Additional payment for additional living expenses shall be payable upon proper proof

following the advance period (California Insurance Code section 2061(a)).

Itemization of Contents

In the event of a covered loss relating to a state of emergency, as defined in California Government Code

section 8558, the following special provisions shall apply under a residential property insurance policy:

(

If an insured has made a claim for contents related to a total loss of a primary residence, an

insurer shall not require that the insured use a company-specific inventory form if the insured can

provide an inventory using a form that contains substantially the same information. This subdivision

does not limit the authority of an insurer to seek additional reasonable information from an insured

upon receipt of an inventory form submitted by an insured.

2)

(

If an insured has made a claim for contents related to a total loss of a primary residence, an

insurer shall accept an inventory that includes groupings of categories of personal property,

including clothing, shoes, books, food items, CDs, DVDs, or other categories of items for which it

would be impractical to separately list each individual item claimed (

3)

California Insurance Code

section 2061(a))

ured has made a claim for contents related to a total loss of a primary residence, an

insurer shall accept an inventory that includes groupings of categories of personal property,

including clothing, shoes, books, food items, CDs, DVDs, or other categories of items for which it

would be impractical to separately list each individual item claimed (

3)

California Insurance Code

section 2061(a)).

Changing Claims Adjusters

If, within a six-month period, an insurer assigns a third or subsequent adjuster to be primarily responsible

for a claim, the insurer shall provide the insured with a written status report. The written status report must

include a summary of any decisions or actions that are substantially related to the disposition of a claim,

including, but not limited to, the amount of losses to structures or contents, the retention or consultation of

design or construction professionals, the amount of coverage for losses to structures or contents, and all

items of dispute (California Insurance Code section 2071).

Note: In addition to the above, California Insurance Code section 14047 requires that for a claim arising

from a state of emergency, if, within a six-month period, an insurer assigns a third or subsequent first-party

real or personal property claims adjuster, the insurer shall establish a primary point of contact for the

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insured and provide the insured one or more direct means of communication with the primary point of

contact.

Appraisal

In the event of a government-declared disaster, as defined in the California Government Code, appraisal

may be requested by either the insured or the insurance company but shall not be compelled (California

Insurance Code section 2071)

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insured and provide the insured one or more direct means of communication with the primary point of

contact.

Appraisal

In the event of a government-declared disaster, as defined in the California Government Code, appraisal

may be requested by either the insured or the insurance company but shall not be compelled (California

Insurance Code section 2071).

Copy of Complete Policy After a Loss

After a covered loss under a policy covered by California Insurance Code section 2071, an insurer shall

provide to the insured, free of charge, a complete, current copy of their policy within 30 calendar days of

receipt of a request from the insured. The policy must include the full insurance policy, any endorsements,

and the declarations page (California Insurance Code section 2084).

Building Code Upgrade Coverage

An open policy of residential property insurance that provides replacement cost coverage shall not be

issued or renewed unless it provides additional building code upgrade coverage of no less than 10 percent

of the dwelling coverage policy limits. The building code upgrade coverage required by this subdivision

shall be additional coverage, and use of this coverage shall not reduce or deplete the dwelling coverage

policy limits for the insured property. Insurers may offer building code upgrade coverage of greater than

10 percent of the dwelling coverage policy limits, in addition to providing the minimum c

)

overage of 10

percent of the dwelling coverage policy limits (California Insurance Code section 10103(c) .

On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply with this section

in its entirety (California Insurance Code section 10103.7(c))

de coverage of greater than

10 percent of the dwelling coverage policy limits, in addition to providing the minimum c

)

overage of 10

percent of the dwelling coverage policy limits (California Insurance Code section 10103(c) .

On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply with this section

in its entirety (California Insurance Code section 10103.7(c)).

Ability to Combine Coverages

In the event of a claim relating to a state of emergency, an insured under a residential property insurance

policy shall be permitted to combine payments for claims for losses up to the policy limits for the primary

dwelling and other structures, for any of the covered expenses reasonably necessary to rebuild or replace

the damaged or destroyed dwelling, if the policy limits for coverage to rebuild or replace the primary

dwelling are insufficient (California Insurance Code section 10103.7(a)).

Payment of Contents Without Inventory

In the event of a covered total loss of a primary dwelling under a residential property insurance policy

resulting from a state of emergency, if the residence was furnished at the time of the loss:

(1) The insurer shall offer a payment under the contents (personal property) coverage in an amount

no less than 60 percent of the policy limit applicable to the personal property covered under the

policy, up to a maximum of three hundred fifty thousand dollars ($350,000), without requiring the

insured to file an itemized claim.

(2) After receiving the payment described in paragraph (1), the insured may recover additional

amounts up to the policy limit for contents coverage by filing a claim pursuant to the terms of the

policy for the loss of contents that exceeds the value of the payment provided pursuant to paragraph

(1).

fifty thousand dollars ($350,000), without requiring the

insured to file an itemized claim.

(2) After receiving the payment described in paragraph (1), the insured may recover additional

amounts up to the policy limit for contents coverage by filing a claim pursuant to the terms of the

policy for the loss of contents that exceeds the value of the payment provided pursuant to paragraph

(1).

(3) When an insured files a claim relating to a state of emergency, as defined in California

Government Code section 8558, the insurer shall notify the insured of the option to receive payment

for loss of contents pursuant to paragraph (1) and of the insured’s option to subsequently file a full

itemized claim pursuant to paragraph (2).

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(4) This subdivision does not affect payment under the policy for scheduled personal property.

(5) As a condition of receiving the advance payment made pursuant this subdivision, an insurer

may require the insured sign an attestation form. The attesting form may request that the insured

acknowledge the residence was furnished and that the insured reasonably believes the personal

property damaged or destroyed had a value that equates or exceeded the amount of the advance

payment. The attestation form shall not contain any misleading or inaccurate information. The

commissioner may issue a bulletin or promulgate a regulation that describes the parameters of an

attestation form.

cknowledge the residence was furnished and that the insured reasonably believes the personal

property damaged or destroyed had a value that equates or exceeded the amount of the advance

payment. The attestation form shall not contain any misleading or inaccurate information. The

commissioner may issue a bulletin or promulgate a regulation that describes the parameters of an

attestation form.

(6) This section does not prohibit an insurer from restricting payment in cases of suspected fraud.

(California Insurance Code section 10103.7(b)).

SIGNIFICANT RATING AND UNDERWRITING RELATED LAWS

Mitigation in Rating Plans and Wildfire Risk Models

Wildfire Risk Model or Rating Factor

California Code of Regulations, Title 10, section 2644.9, subdivision (h) states, Provision of wildfire risk

score or other wildfire risk classification to policyholder or applicant.

An insurer utilizing a Wildfire Risk Model, or rating factor, to segment, create a rate differential, or surcharge

the premium based upon the policyholder or applicant's wildfire risk shall, within one hundred eighty (180)

days after the date this section is filed with the Secretary of State, implement a written procedure to provide,

in writing, to each such policyholder or applicant for property insurance the wildfire risk score or other

wildfire risk classification used by the insurer to segment, create a rate differential, or surcharge the

premium based upon the policyholder or applicant's wildfire risk. The insurer shall provide to the

policyholder or applicant such wildfire risk score or classification at the following times:

(1) No later than fifteen (15) days following the submission to the insurer of the applicant's

completed application;

(2) At least forty-five (45) days prior to each renewal;

(3) At least seventy-five (75) days prior to any nonrenewal; and

r applicant's wildfire risk. The insurer shall provide to the

policyholder or applicant such wildfire risk score or classification at the following times:

(1) No later than fifteen (15) days following the submission to the insurer of the applicant's

completed application;

(2) At least forty-five (45) days prior to each renewal;

(3) At least seventy-five (75) days prior to any nonrenewal; and

(4) In the event that the policyholder or applicant has completed a mitigation measure on the subject

property since the time of the last application to or renewal by the insurer, no later than thirty (30)

days following the submission to the insurer of the policyholder or applicant's request that the

insurer provide a revised wildfire risk score or wildfire risk classification.

Subdivision (i) Policyholder or applicant's right to appeal.

The procedure described in subdivision (h) of this section shall permit a policyholder under, or applicant

for, a policy of property insurance who disagrees with the assignment of the wildfire risk score, or other

wildfire risk classification, provided to the policyholder or applicant pursuant to that subdivision the right to

appeal orally or in writing that assignment directly to the insurer. The insurer shall notify the policyholder

or applicant in writing of this right to appeal the wildfire risk score or other wildfire risk classification

whenever such score or classification is provided to the policyholder or applicant as set forth in subdivision

icyholder or applicant pursuant to that subdivision the right to

appeal orally or in writing that assignment directly to the insurer. The insurer shall notify the policyholder

or applicant in writing of this right to appeal the wildfire risk score or other wildfire risk classification

whenever such score or classification is provided to the policyholder or applicant as set forth in subdivision

(h) of this section. If the policyholder or applicant appeals the wildfire risk score or other wildfire risk

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classification, the insurer shall acknowledge receipt of the appeal in writing within ten (10) calendar days

of receipt of the appeal. The insurer shall respond to the appeal in writing with a reconsideration and

decision within thirty (30) calendar days after receiving the appeal. In the event that an appeal is denied,

the insurer shall, upon request by the Department, forward a copy of the appeal, and the insurer's

response, to the Department.

Subdivision (j) Representation by broker or agent.

If the policyholder or applicant is represented by a broker, or the insurer is represented by an insurance

agent with respect to the policyholder's policy or the applicant's application, the policyholder or applicant

may appeal orally or in writing to the agent or broker the assignment of wildfire risk score or other wildfire

risk classification, who shall then forward that appeal to the insurer no later than five (5) calendar days

after receiving the appeal from the policyholder or applicant. The insurer shall acknowledge receipt of the

appeal in writing to the policyholder or applicant and the agent or broker no later than five (5) calendar

days after receipt of the appeal from the broker or agent. The insurer shall respond to the appeal to the

policyholder or applicant and the agent or broker with a written reconsideration and decision of the appeal

within thirty (30) calendar days after receiving the appeal from the broker or agent

n writing to the policyholder or applicant and the agent or broker no later than five (5) calendar

days after receipt of the appeal from the broker or agent. The insurer shall respond to the appeal to the

policyholder or applicant and the agent or broker with a written reconsideration and decision of the appeal

within thirty (30) calendar days after receiving the appeal from the broker or agent. In the event that an

appeal is denied, the insurer shall, upon request by the Department, forward a copy of the appeal, and the

insurer's response, to the Department.

Subdivision (k) Explanation of wildfire risk score or other wildfire risk classification.

Whenever a wildfire risk score, or other wildfire risk classification used by the insurer to segment, create a

risk differential or surcharge the premium for a particular policyholder or applicant, is identified or provided

to the policyholder or applicant pursuant to subdivision (h) of this section, the insurer shall also provide in

writing:

(1) The range of such scores or classifications that could possibly be assigned to any policyholder

or applicant;

(2) The relative position of the score or classification assigned to the policyholder or applicant in

question within that range of possible scores or classifications, and the impact of the score or

classification on the rate or premium; and

(3) A detailed written explanation of why the policyholder or applicant received the assigned score

or classification; the explanation shall make specific reference to the features of the property in

question that influenced the assignment of the score or classification

n that range of possible scores or classifications, and the impact of the score or

classification on the rate or premium; and

(3) A detailed written explanation of why the policyholder or applicant received the assigned score

or classification; the explanation shall make specific reference to the features of the property in

question that influenced the assignment of the score or classification.

The insurer shall provide, in addition, the following information:

(A) Which mitigation measure or measures can be taken by the policyholder or applicant to lower

the wildfire risk score or classification; and

(B) The amount of premium reduction the policyholder or applicant would realize as a result of

performing each such measure under the insurer's rating plan that is in effect at the time.

Subdivision (l) Notification to policyholder or applicant of right to contact Department in

connection with insurer's response to appeal.

When an insurer responds to the applicant or policyholder in connection with an appeal pursuant to

subdivision (i) or (j) of this section, it shall also notify the policyholder or applicant in writing that the

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policyholder or applicant may contact the Department of Insurance for assistance if the policyholder or

applicant disagrees with the insurer's written reconsideration and decision. In any event, the insurer shall

provide the policyholder or applicant with the Department of Insurance toll-free consumer hotline and web

address of the Department's Consumer Complaint Center (California. Code of Regulations., Title 10,

sections 2644.9(h), (i), (j), (k), and (l))

for assistance if the policyholder or

applicant disagrees with the insurer's written reconsideration and decision. In any event, the insurer shall

provide the policyholder or applicant with the Department of Insurance toll-free consumer hotline and web

address of the Department's Consumer Complaint Center (California. Code of Regulations., Title 10,

sections 2644.9(h), (i), (j), (k), and (l)).

Adjustment of Policy Limits on Renewal

If reconstruction of the primary insured structure has not been completed by the time of policy renewal, the

insurer, prior to or at the time of renewal, and after consultation by the insurer or its representative with the

insured as to what limits and coverages might or might not be needed, shall adjust the limits and coverages,

write an additional policy, or attach an endorsement to the policy that reflects the change, if any, in the

insured’s exposure to loss. The insurer shall adjust the premium charged to reflect any change in coverage

(California Insurance Code section 675.1(a)(1)).

Cancellation After Total Loss to Primary Structure

The insurer shall not cancel coverage while the primary insured structure is being rebuilt, except for the

reasons specified in subdivisions (a) through (e), inclusive, of California Insurance Code section 676. The

insurer shall not use the fact that the primary insured structure is in damaged condition as a result of the

total loss as the sole basis for a decision to cancel the policy pursuant to subdivision (e) of that section

(California Insurance Code section 675.1(a)(2))

ebuilt, except for the

reasons specified in subdivisions (a) through (e), inclusive, of California Insurance Code section 676. The

insurer shall not use the fact that the primary insured structure is in damaged condition as a result of the

total loss as the sole basis for a decision to cancel the policy pursuant to subdivision (e) of that section

(California Insurance Code section 675.1(a)(2)).

Non-Renewal After a Declared Disaster

The insurer shall offer to, for at least the next two annual renewal periods, but no less than 24 months of

coverage from the date of the loss, renew the policy in accordance with California Insurance Code section

675.1(a)(1), if the total loss to the primary insured structure was caused by a disaster, as defined in

subdivision (b) of California Civil Code section 1689.14, the loss was not also due to the negligence of the

insured, and losses have not occurred subsequent to the disaster-related total loss that relate to physical

or risk changes to the insured property that result in the property becoming uninsurable (California

Insurance Code section 675.1(a)(3)).

Non-Renewal or Cancellation Within Fire Perimeter – Residential Property

An insurer shall not cancel or refuse to renew a policy of residential property insurance for a property

located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state

of emergency, as defined in California Government Code section 8558, based solely on the fact that the

insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies

of residential property insurance in effect at the time of the declared state of emergency (California

Insurance Code section 675.1(b)(1))

e year after the declaration of a state

of emergency, as defined in California Government Code section 8558, based solely on the fact that the

insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies

of residential property insurance in effect at the time of the declared state of emergency (California

Insurance Code section 675.1(b)(1)).

Non-Renewal or Cancellation Within Fire Perimeter – Commercial Property

An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property

located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state

of emergency, as defined in California Government Code section 8558, based solely on the fact that the

insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies

of commercial property insurance in effect at the time of the declared emergency.

Reduction of Limits or Elimination of Coverage

An insurer shall deliver to the insured either (1) an offer of renewal of the policy 45 days before the policy

expiration contingent upon payment of premium as stated in the offer, and which states any reduction of

limits or elimination of coverage, or (2) a notice of nonrenewal 75 days prior to the expiration that states

the reason or reasons for the nonrenewal. On or after July 1, 2022, the time periods and procedures in

subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if a notice is mailed.

payment of premium as stated in the offer, and which states any reduction of

limits or elimination of coverage, or (2) a notice of nonrenewal 75 days prior to the expiration that states

the reason or reasons for the nonrenewal. On or after July 1, 2022, the time periods and procedures in

subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if a notice is mailed.

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For the offer of renewal, the insurer shall identify any reduction of limits or elimination of coverage. The

elimination of coverage for the previously covered peril of fire shall be subject to subdivision (b) of California

Insurance Code section 10103.6.

Alignment of Notice of Nonrenewal of Residential Property Policy

If an insurer fails to give the named insured a notice of nonrenewal at least 75 days before the policy

expiration, the existing policy with no change in its terms and conditions, shall remain in effect for 75 days

from the date that the notice of nonrenewal is delivered or mailed to the named insured. A notice to this

effect shall be provided by the insurer to the named insured with the notice of nonrenewal.

On and after July 1, 2022, insurer mailing timelines are to be aligned for both cancellation and non-renewal

notices for homeowners' and workers' compensation insurance policies to ensure they receive extra mail

time-delay-days so consumers have a better chance to retrieve these documents on time (California

Insurance Code sections 678(a) and (c)).

Notice of Nonrenewal for Residential Property Policy

Insurers shall accompany a notice of nonrenewal for a residential property insurance policy expiring on or

after July 1, 2021, with a notice substantially similar to the notice stated in this section

ail

time-delay-days so consumers have a better chance to retrieve these documents on time (California

Insurance Code sections 678(a) and (c)).

Notice of Nonrenewal for Residential Property Policy

Insurers shall accompany a notice of nonrenewal for a residential property insurance policy expiring on or

after July 1, 2021, with a notice substantially similar to the notice stated in this section. The notice in this

section refers insureds to the Department’s California Home Insurance Finder and the California FAIR Plan

to assist the insured to locate an agent, broker, or insurance company by zip code and the languages in

which the agent, broker, or insurance company sells insurance (California Insurance Code section 678(e)).

Grace Period for Payments

In the event of a state of emergency, as defined in California Government Code section 8558, an insurer

shall offer a 60-day grace period for payment of premiums for residential property insurance policies

covering a property located within the affected area defined in the state of emergency for a period of 60

days after the emergency. This does not require any change to insurer billing practices regarding billing,

automatic payment, or cancellation for nonpayment if the insurer reinstates, without a lapse in coverage

or late fees, any policy subject to this section that was canceled for nonpayment of premiums, if requested

by the insured and upon reasonably timely payment of all premiums due (California Insurance Code

section 2062).

Policy Coverage – Peril of Fire

If an insurer issues a new residential property insurance policy on or after July 1, 2021, that does not

provide coverage for the peril of fire, the insurer shall, on or before the date of issuance of the policy, obtain

a signed acknowledgment from the applicant or insured stating that the newly issued policy does not

provide coverage for the peril of fire

62).

Policy Coverage – Peril of Fire

If an insurer issues a new residential property insurance policy on or after July 1, 2021, that does not

provide coverage for the peril of fire, the insurer shall, on or before the date of issuance of the policy, obtain

a signed acknowledgment from the applicant or insured stating that the newly issued policy does not

provide coverage for the peril of fire. If the applicant or insured does not sign the required acknowledgment

on or before the issuance of the policy, the insurer shall obtain the signed acknowledgment from the

applicant or insured within 60 days of the date of issuance of the policy. For purposes of this subdivision,

a new or newly issued policy does not include renewal of an existing policy, including a renewal that

contains different terms than the preceding policy periods.

If an insurer issues or renews a residential property insurance policy on or after July 1, 2021, that does not

provide coverage for the peril of fire, the insurer shall prominently disclose both of the following on the

declarations page of the policy:

(1) The following statement in bold, uppercase letters in no less than 12-point type:

THIS POLICY DOES NOT COVER THE PERIL OF FIRE. THERE ARE OTHER RESOURCES

FOR FINDING FIRE COVERAGE, INCLUDING USING THE CALIFORNIA DEPARTMENT OF

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January 9, 2026

INSURANCE’S HOME INSURANCE FINDER OR PURCHASING COVERAGE FROM THE

CALIFORNIA FAIR PLAN ASSOCIATION.

the policy:

(1) The following statement in bold, uppercase letters in no less than 12-point type:

THIS POLICY DOES NOT COVER THE PERIL OF FIRE. THERE ARE OTHER RESOURCES

FOR FINDING FIRE COVERAGE, INCLUDING USING THE CALIFORNIA DEPARTMENT OF

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January 9, 2026

INSURANCE’S HOME INSURANCE FINDER OR PURCHASING COVERAGE FROM THE

CALIFORNIA FAIR PLAN ASSOCIATION.

(2) Information on the California FAIR Plan, as required by subdivision (h) of California Insurance

Code section 10095 and information on the California Home Insurance Finder, as required by

subdivision (b) of California Insurance Code section 10095.7 (California Insurance Code section

10103.6).

Note: The above laws are the most significant laws pertaining to property insurance policies, including

those related to a declared state of emergency. In addition, all insurers and claims adjusters, whether

California-licensed or not, must be properly trained on the California Unfair Insurance Practices Act

(California Insurance Code sections 790 through 790.15), Fair Claims Settlement Practices Regulations

(California Code of Regulations, Title 10, sections 2695.1 through 2695.12), Insurance Mediation laws

(California Insurance Code sections 10089.70 through 10089.83) and all other laws relating to property

and casualty insurance claims handling, coverage, and eligibility.

Disclaimer: The above laws are significant laws effective as of the date of this notice. Some of the above

laws may not pertain to prior disaster claims.