SB 1301 & CA Property Insurance Nonrenewals: What To Know

What happened: On August 17, 2026, California Senate Bill 1301, which would significantly tighten rules for residential property insurance nonrenewals, was ordered to a third reading in the Assembly. If enacted, the bill would require longer notice periods, specific reasons for nonrenewal, and more homeowner protections, with most provisions taking effect January 1, 2028.

On August 17, 2026, the California Legislature advanced Senate Bill 1301, a key piece of legislation aimed at reforming how residential property insurers can nonrenew policies or reduce coverage. The bill, authored by Senator Ben Allen, whose district includes El Segundo, is not yet law but its progress signals major changes for homeowners and the real estate industry.

What changed?

SB 1301, if passed and signed into law, would introduce several new requirements for insurance carriers starting January 1, 2028. The core changes focus on increasing transparency and providing homeowners with more time and opportunity to maintain their coverage.

Key proposed changes include:

• Longer Notice Periods: Insurers would be required to provide at least 90 days' notice before a policy's expiration date for nonrenewal or renewal with reduced limits. This is an increase from the current 45-day notice for nonrenewal.
• Specific Reasons for Nonrenewal: Carriers would have to provide the policyholder with specific, documented reasons for nonrenewing a policy or reducing coverage, including information from the underwriting guidelines used in the decision. For decisions based on wildfire risk, insurers must disclose details about the risk score.
• Time to Remediate: Homeowners would be given a 90-day period to fix any correctable issues cited by the insurer. This window could be extended to 180 days upon request.
• Restrictions on Nonrenewal: The bill prohibits nonrenewal based solely on certain factors, such as the age of a roof (if it is in good condition), inquiries about coverage that did not lead to a claim, or certain types of minor claims.
• Public Reporting: Insurers would be mandated to submit annual reports on all nonrenewals and coverage reductions to the state, with the data being published online. This creates a public record of carrier activity by area.

These changes are designed to prevent abrupt coverage loss and give homeowners a fair chance to address an insurer's concerns. You can follow the bill's official progress on the California Legislature's information portal.

When does it take effect?

The provisions of SB 1301 are not yet law. The timeline below outlines the bill's recent progress and proposed effective date.

What this means in the South Bay and on the Westside

While SB 1301 is a statewide bill, its impact will be strongly felt in our local markets. For agents and homeowners in Manhattan Beach, Hermosa Beach, Palos Verdes, and Santa Monica, the availability and cost of property insurance are already major transaction hurdles.

In coastal cities like Manhattan Beach and high-fire-risk hillside areas like Palos Verdes, an unexpected nonrenewal notice can kill a deal. Lenders will not fund a loan without proof of adequate insurance. The proposed 90-day notice period under SB 1301 would provide a critical buffer. Instead of a 45-day scramble, all parties would have three months to find alternative coverage or for the homeowner to make required repairs. This is a significant improvement for escrow timelines.

For high-value homes on the Westside, particularly in Santa Monica, Venice, and Playa Vista, the rules around roof age are important. We've seen insurers nonrenew policies on well-maintained homes simply because the roof is 15 or 20 years old. SB 1301 would force insurers to consider the roof's actual condition, not just its age. This provides more stability for owners of older, but well-kept, properties and reduces a common point of friction during the buyer's due diligence.

What agents and homeowners should do now

Even though the bill is pending, you can take steps now to prepare for its potential enactment.

1. Monitor the Bill's Progress. Do not assume SB 1301 is law. The bill must still pass an Assembly vote and be signed by the Governor. We will provide updates, but you can also track its status independently on sites like GovBuddy.
2. Review Current Insurance Policies. Advise your clients to know their policy expiration date and their carrier's current renewal guidelines. Proactively ask their insurance agent about any potential issues well before the renewal period begins.
3. Document Property Upgrades. If you or your clients have recently replaced a roof, upgraded electrical systems, or cleared brush for defensible space, keep all receipts and records. This documentation will be essential if you need to challenge a nonrenewal notice under the new rules.
4. Budget for Mitigation. The bill provides time to make repairs, but it doesn't pay for them. Homeowners in high-risk areas should have a financial plan for potential mitigation work required by an insurer to maintain coverage.
5. Identify Alternative Insurers. Don't wait for a nonrenewal notice. Agents should build relationships with multiple insurance brokers who specialize in high-risk properties, including those who can access the California FAIR Plan.

Open questions

As of late August 2026, several key points remain unconfirmed.

• Final Bill Language: The bill was amended on August 13. The final text that goes to a floor vote may contain further changes. The exact wording is critical.
• Enactment: The bill has not been signed into law. There is no guarantee it will pass the Assembly floor vote or that the Governor will sign it.
• Insurer Implementation: If enacted, we don't know precisely how carriers will implement the new rules. The California Department of Insurance may need to issue further regulations, and each insurer will develop its own internal processes and forms.

Sources

• GovBuddy: SB 1301 Bill Tracking
• Consumer Watchdog: Press Release on Insurance Reform Bills

FAQ

Is SB 1301 law in California now?

No. As of August 27, 2026, SB 1301 has not been passed by the full Legislature or signed by the Governor. It is still a pending bill, and its requirements are not yet in effect.

How does SB 1301 help homeowners with old roofs?

If enacted, SB 1301 would prohibit an insurance company from nonrenewing a policy based solely on the age of the roof. The insurer would have to consider the roof's actual condition, giving owners of older but well-maintained roofs a better chance at keeping their coverage.

What is the new notice period for insurance nonrenewal under SB 1301?

The bill proposes a new minimum notice period of 90 days before a policy's expiration for an insurer to issue a nonrenewal or a renewal with reduced coverage. This would be a significant increase from the current 45-day notice requirement for nonrenewals.

Does SB 1301 stop insurers from non-renewing policies in wildfire areas?

No, SB 1301 does not prohibit nonrenewals in high-risk wildfire areas. Instead, it requires insurers to provide specific reasons for the nonrenewal, including data from their wildfire risk model, and gives the homeowner a 90-day window to take remedial action to potentially keep their policy.

The property insurance market is a moving target. If you have a transaction in the South Bay or Westside and are concerned about how insurance issues might affect your closing, please reach out. We can help you anticipate challenges and keep your file on track. Contact us, Matt Goeglein and Xavier de la Piedra IV, for help with your next deal.