Climate change has left many parts of the world dealing with extreme weather. As a result, some areas are getting hit harder by severe storms and natural disasters, which are destroying property and taking lives. Now insurance companies are feeling the pain after having to pay big claims, which can add up to several billion dollars a year.
That has some homeowners insurance (HOI) companies pulling out of certain areas across the country, like in California, where wildfires have been especially damaging. But Californians aren’t just losing their insurance due to climate emergencies. There are all kinds of reasons why HOI companies are choosing not to renew, and Senator Ben Allen wants to make it so they have to explain those reasons to policyholders.
He introduced Senate Bill 1301 on Feb. 20, 2026, according to the California Legislative Information website. If passed, HOI companies would be forced to tell policyholders exactly why they cannot renew, and give them time to fix any issues that prompted the decision.
While this wouldn’t help those hard-hit wildfire areas, it could help other households protect their homes from everyday emergencies.
The Bill’s Supporters Think It Will Help Homeowners
According to The Center Square, SB 1301 could offer policyholders a chance to fix problems around the house. The bill would make it so that HOI companies would need to explain exactly what issues triggered the non-renewal and then give the homeowner 90 days to remedy the situation.
For example, if your HOI company doesn’t want to renew your policy because your roof is 40 years old, this bill would require them to inform you of that reason and then give you 90 days to have your roof replaced before they could terminate your policy.
“Consumers often have little information about the reason for the nonrenewal, and have no path to correcting a problem before their policy gets cancelled,” Carmen Balber, executive director of nonprofit Consumer Watchdog, told the publication. “This bill gives folks more notice, a path to remediate the problem if there is one, and the ability to keep their coverage.”
Critics of the Bill Say It’s Bad for Business
It may seem like it would be a win-win for companies and policyholders, since homeowners would get to keep their home insured while HOI companies would get to keep collecting an annual premium. But Mark Sektnan, vice president of the American Property Casualty Insurance Association, told the publication he was opposed to the idea, especially the part about the 90-day timeframe.
“The way the bill was drafted, it would have created a situation where a homeowner could basically hold on to their policy for two years and not do any mitigation.”
Homeowners Must Carry Insurance if They Have a Mortgage
Insuring your home isn’t just something that gives you some peace of mind when it comes to the unexpected; it’s also required by lenders. According to Experian, a lack of an active and valid HOI policy could trigger a foreclosure.
Most mortgage companies require you to keep a policy on your home. If the company finds out it has lapsed, they could require you to carry force-placed insurance, which is a policy that is obtained by the servicer of your loan to make sure they don’t lose out on their investment.
Of course, once your loan is paid off, you are free to go without an HOI policy. That being said, doing so could open you up to financial and liability issues that could bankrupt you, making it not worth the risk.