Commercial property insurance cancellation and nonrenewal.

Senators Pérez and Rubio's commercial property insurance legislation extends California's existing wildfire-related insurance protections to cover business properties, prohibiting insurers from canceling or refusing to renew policies solely because a property is located in or adjacent to a wildfire zone for one year after a state of emergency declaration.

The measure establishes specific parameters for implementation, requiring the Department of Forestry and Fire Protection to determine affected fire perimeters in consultation with the Office of Emergency Services. The Insurance Commissioner then notifies insurers which ZIP codes fall under the cancellation restrictions. The protections apply to most commercial property insurance policies, though certain exceptions exist for inland marine, transit, and transportation insurance, as well as high-premium policies held by larger employers.

The legislation maintains existing exceptions that allow insurers to cancel or not renew policies when property owners commit willful or grossly negligent acts that increase risks, when unrelated losses affect insurability, or when physical changes beyond fire damage make the property uninsurable. It explicitly includes various commercial residential properties under its protections, such as homeowners associations, apartment complexes, student housing, and senior living facilities, regardless of premium size or employee count.