California 2025-2026 Regular Session

California Senate Bill SB547

Introduced
2/20/25  
Refer
3/5/25  
Report Pass
4/24/25  
Refer
4/24/25  
Report Pass
4/24/25  
Engrossed
6/3/25  
Refer
4/24/25  
Refer
6/9/25  
Refer
7/10/25  
Report Pass
7/16/25  

Caption

Commercial property insurance cancellation and nonrenewal.

Impact

The bill extends the existing prohibition on policy cancellation for residential properties to commercial property insurance. By doing so, it aims to provide stability and assurance for business owners facing the challenges of wildfire aftermath and helps promote economic recovery in affected areas. The measure is particularly significant given the increasing frequency of wildfires in California, allowing businesses to maintain their coverage without fear of being dropped by insurers due to wildfire incidents.

Summary

Senate Bill 547 introduces an important update to California's Insurance Code by expanding protections for commercial property insurance in the wake of wildfires. Specifically, it prohibits insurance companies from canceling or refusing to renew commercial property insurance policies for properties located in areas within or adjacent to a wildfire's fire perimeter for a year following a declared state of emergency. This amendment aligns commercial property regulations with pre-existing protections for residential property, emphasizing the need for a consistent response to wildfire risks in an increasingly fire-prone environment.

Sentiment

Generally, the sentiment surrounding SB 547 appears to be positive among legislators and stakeholders who recognize the necessity of providing businesses with some protection during disaster recovery phases. Supporters argue that it is a significant step towards comprehensive wildfire management and economic resilience. However, there may also be concerns regarding the implications for insurers' risk assessments and operational practices in high-risk areas, which could lead to higher premiums in the long term.

Contention

One notable point of contention is whether the bill adequately balances consumer protections with the sustainability of the insurance industry. Critics may argue that while the bill provides essential protections for property owners, it could also lead to increased risk for insurers that may push them to limit offerings or raise premiums in wildfire-prone areas. Additionally, there are exceptions included in the bill that permit cancellations if negligence or physical changes to the property increase risk levels, which could be points of debate regarding their clarity and enforceability.

Companion Bills

No companion bills found.

Previously Filed As

CA AB478

Wildfires: insurance.

CA SB1295

Automobile insurance: notice of cancellation.

CA AB2416

Residential property insurance: wildfire risk.

CA SB505

Property insurance.

CA SB1060

Property insurance underwriting: risk models.

CA AB1095

Insurance: personal vehicle sharing.

CA AB2743

Insurance: personal vehicle sharing.

CA SB1103

Tenancy of commercial real properties: agreements: building operating costs.

CA AB1315

Small business guide to commercial insurance.

CA SB672

Residential property insurance.

Similar Bills

No similar bills found.