Fire insurance: reporting on cancellation and nonrenewal.

Senator Alvarado-Gil's proposed legislation would require the California Department of Insurance to track and report on residential property insurance policy changes in areas affected by wildfires. The measure builds upon existing law that temporarily prevents insurers from canceling or refusing to renew policies in ZIP codes within or adjacent to fire perimeters following a state of emergency declaration.

Under the proposal, the Department would submit annual reports to the Legislature beginning January 1, 2027, analyzing insurance policy changes in two categories of ZIP codes: those adjacent to but not included in areas where the cancellation moratorium applies, and those where the one-year moratorium has expired. The reports would document the number of policies canceled or not renewed in these areas, tracking whether affected policyholders obtained new coverage through the standard market or the California FAIR Plan.

The reporting requirements aim to provide data on how insurers adjust their coverage decisions in response to wildfire risks and regulatory restrictions. The measure maintains current protections that prohibit insurers from canceling or non-renewing policies solely because a property is located in a wildfire-affected area, while adding mechanisms to monitor insurance availability in surrounding and previously affected regions.