Bill > SB547

This bill adds Section 675.55 to the California Insurance Code to protect commercial property insurance policyholders in areas affected by wildfires by preventing insurers from canceling or refusing to renew their policies solely because the insured property is located in a wildfire-impacted area. Specifically, the bill prohibits insurance cancellation or non-renewal for one year after a state of emergency declaration for properties in ZIP Codes within or adjacent to the fire perimeter, as determined by the Department of Forestry and Fire Protection and confirmed by the insurance commissioner. The prohibition does not apply if the policyholder has committed willful or grossly negligent acts that increase risk, if unrelated losses would make the property ineligible for renewal, or if physical changes make the property uninsurable. The bill applies to most commercial property insurance policies under $25,000 in annual premiums, with specific exceptions for certain types of insurance like inland marine or transit coverage. The law also explicitly includes policies for various commercial residential properties such as homeowners associations, condominium complexes, apartment buildings, student housing, and senior living facilities, ensuring broader protection for commercial property owners in wildfire-affected regions.

Budget and Finance, Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB547