POLICYHOLDERS DESERVE PROTECTIONS FROM INSURANCE NONRENEWALS

The following information was released by California State Senator Ben Allen:

SB 1301 (Allen) provides guardrails to preserve home insurance coverage for policyholders

SACRAMENTO Senator Ben Allen (D-Pacific Palisades) introduced SB 1301 today to safeguard homeowners and renters from insurance nonrenewals to prevent loss of coverage.

"Property insurance is a foundational pillar that safeguards the wellbeing of residents everywhere," said Senator Allen. "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."

California policyholders face the fourth highest rate of nonrenewals in the nation. Meanwhile, the FAIR Plan, which serves as the insurer of last resort, has seen its total exposure increase by 230% since 2022.

To mitigate the risk of nonrenewal, SB 1301 requires property insurers to provide a notice of nonrenewal six months in advance and detail specific reasons for nonrenewal. Importantly, the bill provides consumers the opportunity to make necessary repairs or adjustments to their property in order to maintain their coverage

"This is about keeping families in our homes," said Joy Chen, Executive Director of Eaton Fire Survivors Network, an organization that represents over 10,000 survivors of the Palisades and Eaton fires and is sponsoring the legislation. "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."

"Too many Californians have lost their insurance coverage without explanation, because of bad information, or simply because they filed a claim," said Carmen Balber, Executive Director of Consumer Watchdog, a co-sponsor of the bill."Insurance companies have rules about what homes they cover but families losing coverage never get a chance to meet them.SB 1301 gives consumers information they can act on to keep their policy, and a right to use their insurance without losing it."

SB 1301 additionally prohibits a nonrenewal specifically because a policyholder inquired about a claim, filed a claim that was not paid or is not payable, or filed a claim that was within their deductible, among other reasons.

The bill will be heard in its respective policy committee in the coming weeks.