Fire insurance: reporting on cancellation and nonrenewal.

Senator Alvarado-Gil's fire insurance reporting legislation requires the California Department of Insurance to analyze and report annually on the effectiveness of existing protections that prevent insurers from canceling or refusing to renew residential property policies in wildfire-affected areas.

The bill mandates that starting January 1, 2027, the Department must submit detailed reports to the Legislature examining how the current one-year prohibition on policy cancellations impacts insurance coverage in ZIP codes subject to these protections. These reports must include data on the number of policies canceled or not renewed during the moratorium period, new California FAIR Plan policies issued, and comparative assessments of FAIR Plan policy uptake before, during, and after the prohibition expires.

The reporting requirements aim to provide empirical data about whether the existing moratorium affects insurance availability through the FAIR Plan, which serves as California's insurer of last resort. The Department must compile statistics on policy changes in protected ZIP codes, which are determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services based on fire perimeter data.