Insurance Town Hall Resources

The non-renewal notice from your current insurer must arrive 75 days in advance of the non-renewal date and must identify the specific reason for the non-renewal (California Insurance Code Section 678). If you can remedy the cause of the non-renewal before the expiration of your current policy, you should immediately contact your agent or insurer to indicate that the issue has been corrected. If the insurer does not then rescind the non-renewal, contact the Department of Insurance at its 800 number: 800-927-4357.

The Insurance Commissioner does not have the authorization to make any insurance company cover any individual or business. Homeowners should reach out to the Consumer Hotline at 800-927-4357 to file a complaint and ensure that your non-renewal was compliant with the law.

Whether or not you believe you can resolve the cause of the non-renewal, you should immediately begin shopping for replacement coverage. Because the current insurance market is so challenging, you may need to contact multiple agents or insurers before you find new coverage. Make sure you do a thorough search of the market before settling for coverage with the California FAIR Plan - the very expensive “insurer of last resort” for those who can’t find coverage elsewhere. Be aware that if you do end up with a FAIR Plan policy, you will need to purchase a separate “Difference in Conditions” policy, sometimes referred to as a “DIC” or “wraparound,” to achieve coverage approximating a homeowners policy.

Helpful information that you can check out online include United Policyholders website:

Dropped by Your Home Insurer? Don't Panic, Try Our Tips - United Policyholders

And this webpage from the Department of Insurance website:

Top Ten Tips for Finding Residential Insurance

The best ways to avoid non-renewal are to do all the things that are within your control to lower your risk of loss. That means maintaining the structure by making sure your roof is not deteriorating and that your plumbing is not leaking, that your electrical system is up to date, and that your air conditioning and furnace are regularly serviced. Locks, lighting and alarm systems are also important crime deterrents. Keep good communication with your neighbors to look out for each other.

Because much of the recent concern is about the risk of wildfire, you should do everything reasonably within your control to maintain your landscape to be consistent with either the Safer from Wildfires standards or the Wildfire Prepared Home standards. Consider joining a Firewise Community if one exists nearby.

With respect to escalating rates, there is not a whole lot that the insured can control. However, you should ask your agent or insurer what discounts are available. And note that every admitted insurer and the California FAIR Plan will give you discounts for Safer from Wildfire mitigation actions.

Another important consideration should be raising your deductible. It’s not a good idea to make small claims anyway so it’s best to raise your deductible to an amount where you are able to reasonably sustain the loss without filing a claim. For every policyholder that may be a different amount but deductibles of $5,000 or $10,000 (or more) can have a notable impact on reducing the premium.

There may be some other options to reduce certain coverages in your policy; discuss with your agent what options may be available to you.

And remember, additional information is always available (for free) at uphelp.org!

Answer coming soon

Insurance Commissioner Ricardo Lara is addressing both short and long-term factors to create lasting solutions for consumers, including:

Safer from Wildfire Regulations: Commissioner Lara, in partnership with the emergency response and readiness agencies in Governor Newsom’s administration, has mandated insurance companies to recognize and reward wildfire safety and mitigation efforts made by homeowners and businesses. This new regulation requires insurance companies to submit new rates that recognize the benefit of safety measures such as upgraded roofs and windows, defensible space, and memberships in community-wide programs such as Firewise USA and the Fire Risk Reduction Community designation developed by the state’s Board of Forestry and Fire Protection. It further requires insurance companies to provide discounts to consumers that meet various elements of the Safer from Wildfires framework and to provide consumers with their property’s “wildfire risk score,” including a right for consumers to appeal that score.

Sustainable Insurance Strategy: Commissioner Lara’s Strategy is a comprehensive initiative aimed at modernizing the state’s insurance market to ensure accessible insurance for all Californians, create a resilient insurance marketplace, and protect consumers and communities from the adverse impacts of climate change.   The strategy consists of several components to enhance insurance access, fairness and resilience for both the market and consumers.

• Streamlining the rate application process
• Introducing risk management tools such as catastrophe modeling and net cost of reinsurance, with a commitment from insurance companies to write at least 85% of the homes and business in distressed area
• And strengthening the FAIR Plan

Proactive Outreach to Insurance Companies: Commissioner Lara continues to proactively outreach to insurance companies to write more business in California so consumers continue to have available coverage options in the face of continued climate change. These discussions are on-going.

Rate Filing Approvals and Market Conduct Reviews: The Department experts closely review insurers’ submitted rate filings to ensure any approved rates are justified and to make sure consumers are not paying more than necessary for their coverage. These reviews promote fairness, transparency, and accountability within the insurance marketplace. Commissioner Lara unveils first wave of proposed regulatory reforms to help safeguard the integrity of the state's insurance market.

FAIR Plan Reforms: Commissioner Lara is reforming the FAIR Plan to expand its coverage options and ensure affordability for policyholders, including expanding residential and commercial coverage limits for the first time in 25 years to keep pace with increased costs. His agreement with the FAIR Plan increases its commercial coverage limit to $20 million for businesses unable to find coverage in the normal insurance marketplace.

Moratorium on Non-renewals and Cancellations: Under Senate Bill 824 (2018), authored by then-Senator Lara, the Commissioner has protected more than 4 million people statewide since 2019 through mandatory one-year moratoriums on insurance companies cancelling or non-renewing residential insurance policies in certain areas within or adjacent to a fire perimeter after a declared state of emergency is issued by the Governor.

It is not feasible for the State of California to become an insurer. The FAIR Plan was created to be the insurer of last resort.

The FAIR Plan remains committed to ensuring all Californians have access to basic property coverage and the peace of mind they deserve. As an insurer of “last resort,” the FAIR Plan was established by statute to provide a temporary safety net for consumers who need fire insurance until coverage through the voluntary market is available.

The FAIR Plan, by statute, is required to charge actuarially sound rates to ensure that it has the capacity to pay claims. If the FAIR Plan is unable to pay claims and its operating expenses, by statute, and with the approval of the Insurance Commissioner, it is able to issue assessments to all carriers admitted in California who write property insurance.

The FAIR Plan covers a significantly higher concentration of high-fire risk properties than voluntary insurers and typically has higher rates due to its elevated risk exposure. The FAIR Plan provides insurance to property owners who are unable to obtain coverage in the voluntary or surplus lines markets.

The FAIR Plan is required by law to have actuarially sound rates which means that FAIR Plan rates must be sufficient to cover expenses and projected losses.

The FAIR Plan has experienced historic growth, and more Californians are continuing to turn to it for the coverage they need. The FAIR Plan supports efforts to improve the health of California’s insurance marketplace so that consumers have choices when it comes to property insurance. The FAIR Plan is committed to ongoing collaboration with the California Department of Insurance, the Governor, the Legislature and other stakeholders to stabilize the market and depopulate the FAIR Plan, which are essential goals of the Insurance Commissioner’s Sustainable Insurance Strategy.

All questions regarding a specific policy, whether home, auto, business, life or other insurance should be directed to our toll-free Consumer Hotline at 800-927-4357 or online at https://www.insurance.ca.gov. 

The hotline is staffed by Compliance Officers who are the only Department of Insurance representatives that can answer specific questions about a particular policy.  If needed, you will be directed to fill-out a Request for Assistance (RFA) form.

If you would like to suggest ideas pertaining to California laws, you should contact your local legislative representatives.  If you want to suggest ideas to the California Department of Insurance please contact the Department’s Consumer Hotline at 800-927-4357 or join one of the public workshops to provide public comment that pertains to the topic being discussed.  The process is transparent and welcomes public comments.  You can sign up for alerts to receive workshop notifications below.

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