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SB-547 • 2026

Commercial property insurance cancellation and nonrenewal.

Commercial property insurance cancellation and nonrenewal.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Pérez (S) , Rubio
Last action
2025-10-10
Official status
Chaptered by Secretary of State. Chapter 544, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on enforcement mechanisms or consequences if insurers violate the law.

Commercial Property Insurance Protection During Wildfires

This law prevents insurance companies from canceling or not renewing commercial property insurance for one year after a wildfire if the decision is based solely on the location of the property.

What This Bill Does

  • Prevents insurance companies from ending policies for businesses in areas affected by wildfires.
  • Applies this protection to commercial properties located within ZIP Codes near or inside fire-affected areas.
  • Limits when insurers can cancel or not renew a policy, ensuring it's only allowed if there are reasons other than the property’s location after a wildfire.

Who It Names or Affects

  • Businesses with commercial property insurance in areas affected by wildfires.
  • Insurance companies providing coverage for commercial properties.

Terms To Know

Wildfire
A large, uncontrolled fire that spreads quickly over dry vegetation and can cause significant damage to buildings and the environment.
ZIP Code
A postal code used by the United States Postal Service to identify specific delivery areas within a city or region.

Limits and Unknowns

  • The law does not specify what happens if an insurer cancels or refuses to renew a policy for reasons other than location.
  • It is unclear how this law will be enforced and monitored by regulatory bodies.

Bill History

  1. 2025-10-10 California Legislative Information

    Chaptered by Secretary of State. Chapter 544, Statutes of 2025.

  2. 2025-10-10 California Legislative Information

    Approved by the Governor.

  3. 2025-09-23 California Legislative Information

    Enrolled and presented to the Governor at 2 p.m.

  4. 2025-09-13 California Legislative Information

    Assembly amendments concurred in. (Ayes 36. Noes 0. Page 3052.) Ordered to engrossing and enrolling.

  5. 2025-09-13 California Legislative Information

    In Senate. Concurrence in Assembly amendments pending.

  6. 2025-09-13 California Legislative Information

    Read third time. Passed. (Ayes 79. Noes 1. Page 3442.) Ordered to the Senate.

  7. 2025-09-13 California Legislative Information

    Joint Rule 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)

  8. 2025-08-21 California Legislative Information

    Read second time. Ordered to third reading.

  9. 2025-08-20 California Legislative Information

    From committee: Do pass. (Ayes 15. Noes 0.) (August 20).

  10. 2025-07-17 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  11. 2025-07-16 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (July 16).

  12. 2025-07-10 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.

  13. 2025-06-09 California Legislative Information

    Referred to Com. on INS.

  14. 2025-06-04 California Legislative Information

    In Assembly. Read first time. Held at Desk.

  15. 2025-06-03 California Legislative Information

    Read third time. Passed. (Ayes 39. Noes 0. Page 1452.) Ordered to the Assembly.

  16. 2025-05-06 California Legislative Information

    Read second time. Ordered to third reading.

  17. 2025-05-05 California Legislative Information

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  18. 2025-04-25 California Legislative Information

    Set for hearing May 5.

  19. 2025-04-24 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 869.) (April 23). Re-referred to Com. on APPR.

  20. 2025-04-04 California Legislative Information

    Set for hearing April 23.

  21. 2025-03-05 California Legislative Information

    Referred to Com. on INS.

  22. 2025-02-21 California Legislative Information

    From printer. May be acted upon on or after March 23.

  23. 2025-02-20 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 547, Pérez.
Commercial property insurance cancellation and nonrenewal.
Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified.
This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance, except as specified.

Current Bill Text

Read the full stored bill text 
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