California home insurance nonrenewal: what to do

California's notice rules

Under California Insurance Code section 678, an insurer must deliver or mail written notice of nonrenewal at least 75 days before a homeowners policy expires, along with the reason. SB 1301 extends that period to 90 days starting January 1, 2028.

Wildfire moratoriums

California has a rule most states do not. Under Insurance Code section 675.1, after the Governor declares a state of emergency for a wildfire, the Insurance Commissioner can issue a one-year moratorium on nonrenewals for homes in ZIP codes in or next to the fire area. During a moratorium, insurers generally cannot nonrenew covered policies for wildfire risk.

Before you accept a notice, check the California Department of Insurance website for current moratorium bulletins and the ZIP codes they cover. If your ZIP is listed and your policy is in scope, your nonrenewal may not be allowed. Call the CDI hotline at (800) 927-4357 to confirm.

Safer from Wildfires discounts

California's "Safer from Wildfires" rules require insurers to recognize certain mitigation steps in their rates, such as Class A fire-rated roofs, ember-resistant vents, a 5-foot non-combustible zone around the home, and community programs like Firewise USA. See the CDI wildfire resources for the current list. If you have done this work, tell your insurer and every agent you contact, and ask for the discount in writing.

The California FAIR Plan

The California FAIR Plan is the state's insurer of last resort. It is meant for homeowners who cannot find coverage in the regular market. Key things to know:

• Basic coverage. The FAIR Plan dwelling policy covers fire, lightning, smoke and some other named perils. It does not include liability, theft or water damage the way a standard homeowners policy does.
• Pair it with a DIC policy. A difference-in-conditions policy, sold by private insurers, fills in many of the gaps. Ask your agent to quote the two together.
• How to apply. Through a licensed broker or agent, or call (800) 339-4099.

A sensible order of steps

1. Check for a moratorium. This can make the rest unnecessary.
2. Ask your insurer what would change its mind. Mitigation sometimes does.
3. Shop the standard market. Independent agents can quote several companies. Some insurers are still writing in areas others left.
4. Look at surplus lines. A surplus-lines broker can place coverage with a nonadmitted insurer if admitted ones decline.
5. Use the FAIR Plan plus DIC if needed. Compare the combined cost to any surplus-lines quote.
6. Keep your lender informed. Tell your mortgage servicer before the policy lapses.

Document your home before you shop

Underwriters in wildfire areas often ask the same questions. Have answers ready: roof type and age, vent screens, what is within 5 feet of the house, distance to brush, and whether your community is a recognized Firewise USA site. Dated photos help. A complete file can shorten the time it takes to get a quote.

Flood and earthquake are separate

California homeowners policies do not cover flood or earthquake. After a wildfire, burn scars can raise mudflow risk. Check your address on FEMA's Flood Map Service Center and ask about earthquake coverage while you shop.

Questions to ask a California broker

• Which admitted insurers are still writing new policies in my ZIP code?
• If I need the FAIR Plan, what would a difference-in-conditions policy add, and what would the two cost together?
• Does the quote pay replacement cost or actual cash value, and is there extended replacement cost?
• Which Safer from Wildfires discounts does this company apply, and what proof does it need?
• Is there a separate wildfire or wind deductible?

Get answers in writing, and compare quotes side by side. A lower premium can hide a much smaller payout after a loss.

Keep your mortgage current

If your policy lapses, your lender can buy force-placed coverage and add the cost to your payment. It usually costs more and protects the lender, not your belongings. Send your new declarations page to your servicer as soon as you bind.

Before you sign

Read the declarations page and endorsements. Check the dwelling limit against a current rebuild estimate, since construction costs in many California areas have risen. Ask whether the policy includes extended replacement cost and code upgrade coverage, which help after a total loss.

Build a wildfire file before you call

California underwriters in fire areas ask detailed questions. Gather your roof's fire rating, photos of vent screens and the first 5 feet around the house, the distance to the nearest brush, and any Firewise USA or Safer from Wildfires paperwork. Add your nonrenewal notice and a current rebuild estimate. One complete file, sent to every broker, saves days of back and forth.

When to call the CDI

Call (800) 927-4357 if your notice came with less than 75 days left, gives no reason, or you think a moratorium applies. To talk through replacement options, call us.

Not sure what your letter says? Use the notice decoder. Roof the problem? Read roof-age rules. Other states: all state guides.

Sources

• California Insurance Code 678
• California Insurance Code 675.1
• California Department of Insurance
• CDI wildfire and residential resources
• California FAIR Plan