California home insurance cancellation and non-renewal laws

Notice of non-renewal

California's published rule requires a notice of non-renewal to be delivered or mailed at least 75 days before the policy expires. When the notice is mailed, California's mailing rule adds 5 days (10 if mailed from or to an address outside California).

• Applies to policies of residential property insurance described in § 675 expiring on or after July 1, 2020.
• If the notice is mailed (on and after July 1, 2022), the time periods and procedures of Code of Civil Procedure § 1013(a) apply: 5 extra calendar days when mailed within California, 10 when mailed from or to an address outside California.

Notice of cancellation

California's published rule requires a notice of cancellation at least 20 calendar days before it takes effect (10 days for nonpayment of premium or fraud). When the notice is mailed, 5 days are added (10 if mailed from or to an address outside California).

• CCP § 1013(a) applies if the notice is mailed (+5 days in-state, +10 out-of-state).
• Nonpayment of premium and fraud: 10 calendar days (separate rule).

Notice of cancellation for nonpayment

California's published rule requires at least 10 calendar days' notice before a cancellation for nonpayment of premium takes effect. When the notice is mailed, 5 days are added (10 if mailed from or to an address outside California).

• CCP § 1013(a) applies if the notice is mailed (+5 days in-state, +10 out-of-state).

What a non-renewal notice must include

California's published rule says a non-renewal notice must state the specific reason or reasons, give the insurer's phone number for consumer questions, explain that you may have the matter reviewed by the California Department of Insurance, and include information about the California Home Insurance Finder and the FAIR Plan.

Requesting the information behind the decision

California's published rule gives a way to ask for more detail: a written request made within 90 business days of the notice asks the insurer to provide, within 21 business days, the specific information that supports its reasons and where that information came from.

• Written request within 90 business days of the notice.
• Privileged information may be withheld where the insurer has a reasonable, documented suspicion of fraud or material misrepresentation (§ 791.10(b)(2)(A)).

Permitted grounds for cancellation

After a policy has been in force for 60 days (or right away for a renewal), California's published rule lists five grounds for cancellation: nonpayment of premium; conviction of a crime that increases a hazard insured against; fraud or material misrepresentation; grossly negligent acts that substantially increase a hazard; and physical changes that make the property uninsurable. The notice must say which ground is relied on.

• Applies after the policy has been in effect 60 days, or immediately if the policy is a renewal.

Pending claims

California's published rule says an insurer may not refuse to renew solely because a claim is pending under the policy (earthquake claims are treated differently).

• Earthquake claims under Chapters 8.5 and 8.6 are excluded.

Protections after a total loss

After a total loss of the home, California's published rule limits cancellation while the home is being rebuilt, and — for total losses caused by a declared disaster — requires the insurer to offer renewal for at least the next two annual renewal periods (no less than 24 months from the loss), subject to listed exceptions.

• Total loss to the primary insured structure under a § 675 policy.
• The § 676 cancellation grounds still apply.
• Renewal offer applies where the total loss was caused by a disaster, was not also due to the insured's negligence, and later losses have not made the property uninsurable.

What the rule says about late non-renewal notices

California's published rule describes what happens when a non-renewal notice is not given at least 75 days before expiration: the existing policy remains in effect, unchanged, for 75 days from the date the notice is delivered or mailed. Your Department of Insurance can answer questions about how this applies.