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California extends post-wildfire residential insurance protections to two years
Assembly Bill 2038 raises guaranteed renewal coverage for total-loss claims from 24 to 36 months, signed by Governor Gavin Newsom on September 30.
California expanded its rules limiting insurers from canceling residential policies after wildfire damage, extending the moratorium from one year to two years, according to Insurance Business.
The changes also increase total-loss renewal guarantees from 24 months to 36 months for residential property policies in or near wildfire-affected ZIP codes, affecting both renewal and nonrenewal timelines.
Assembly Bill 2038, which amends Section 675.1 of the California Insurance Code, was signed by Governor Gavin Newsom on September 30, with Assemblymember Harabedian as the author.
Insurance Business said the update requires California residential property insurers and other parties involved, including the California Department of Insurance, Cal Fire, and the Office of Emergency Services, to adjust nonrenewal workflows, ZIP code monitoring, and renewal calendars.