SB 1301 requires greater transparency, additional notice and an opportunity to correct certain property conditions before an insurer refuses to renew residential coverage.

California property owners facing an increasingly difficult insurance market will soon have additional protections when an insurer decides not to renew their residential property coverage.

Governor Gavin Newsom signed Senate Bill 1301, authored by Senator Ben Allen (D-Santa Monica), on September 27. The new law establishes additional requirements for insurers considering residential property insurance nonrenewals and gives policyholders more information — and, in certain circumstances, an opportunity to correct the conditions threatening their coverage.

Most of the new requirements become operative January 1, 2028.

Under SB 1301, insurers generally will be required to provide a residential policyholder with a notice of nonrenewal at least 90 days before the policy expires, up from the current 75-day requirement. If the insurer fails to provide timely notice, the existing policy must remain in effect for 90 days after the notice is ultimately delivered or mailed.

Perhaps more significant for rental housing providers is the additional information insurers must provide.

An insurer refusing to renew coverage must give the policyholder a detailed, plain-language explanation of the grounds for the decision and provide any non-aerial imagery relied upon. If requested, the insurer must also provide property inspection findings or reports relied upon in making the decision within 15 days. When wildfire risk contributes to the nonrenewal, the insurer must provide the applicable wildfire risk score or classification and explain relevant property-specific and surrounding-area characteristics.

The law also creates an important opportunity to address correctable property conditions.

When an insurer determines that a property fails its underwriting guidelines because of a condition the policyholder can remedy, the insurer must provide notice at least 120 days before expiration, explain what remediation or additional information could qualify the property for renewal, and give the policyholder at least 90 days to complete the work or provide the requested information. Once the insurer verifies that the specified remediation has been completed, the property qualifies for renewal under the statute.

Policyholders will also have a formal opportunity to dispute inaccurate or incomplete information used in a nonrenewal decision. Insurers must acknowledge those disputes within 10 days and issue a written determination within 30 days.

SB 1301 provides additional protection for aging roofs. Beginning in 2028, an insurer cannot refuse to issue or renew residential property insurance solely because of a roof’s age when the policyholder obtains an independent inspection showing at least five years of useful life remaining. Insurers may still consider roof age as part of their broader underwriting evaluation.

The legislation comes as California continues grappling with reduced insurance availability, particularly in areas exposed to wildfire risk. Existing state law already provides temporary one-year nonrenewal protections in ZIP Codes affected by certain declared wildfire emergencies; SB 1301 establishes broader procedural protections that are not limited to those disaster areas.

For rental housing providers, the practical message is straightforward: a nonrenewal notice will increasingly be the beginning of a process rather than simply the end of coverage.

Owners should review future notices carefully, request the supporting inspection information when appropriate, promptly challenge factual errors, and evaluate whether identified conditions can be corrected within the statutory remediation period. Maintaining records of roof inspections, wildfire mitigation, property repairs and other risk-reduction work may also become increasingly valuable when responding to underwriting concerns.

This article has been prepared by the editorial staff of Apartment News Publications, Inc. (ANP) intended for informational purposes only and does not constitute legal advice. Readers should consult with qualified counsel regarding their specific circumstances.