Committee approves extending residential nonrenewal moratorium to some commercial properties after disasters

Senator L. Perez presented SB 547, a bill to expand the state’s post-disaster insurance moratorium to commercial properties located in ZIP codes within or adjacent to a fire perimeter after a state of emergency.

‘‘Existing law prohibits the cancellation or refusal to renew residential property insurance policies for residential properties located in a ZIP code within or adjacent to a fire perimeter for 1 year after a state of emergency is declared. This existing gap in state law was depicted in the devastating impact that the January 2025 wildfires not only had on residential properties, but on commercial properties in my community as well,’’ Perez said, noting impacts to thousands of structures and arguing local businesses and nonprofits need stability to rebuild.

Insurance Commissioner Ricardo Lara, who sponsors the bill, said his department has issued moratoriums covering millions of policyholders and that ‘‘if Main Street can’t rebuild, the entire city suffers.’’ He asked the committee for an aye vote.

Opponents including the American Property Casualty Insurance Association and the Pacific Association of Domestic Insurance Companies described commercial risks as fundamentally different from residential risks — often involving different uses, higher values, inventory and liability exposures. Denny Ritter (APCIA) warned the bill, as written, could restrict insurers’ ability to manage risk concentrations after a disaster and could force nonrenewals outside moratorium zip codes. The industry asked the author to narrow the bill’s scope (for example, to habitational commercial properties such as HOAs, condominiums and affordable housing units).

Senator Perez said she was actively engaging stakeholders and would continue work with APCIA and other groups. Senator Rubio, Senator Nilo and others voiced support for moving the bill forward to allow more detailed negotiations. The committee recorded a motion to pass the bill to Appropriations; the transcript shows roll-call activity with the motion ultimately recorded as passed by committee (tally recorded in roll-calls during the hearing).

Votes at a glance: SB 547 — Passed to Appropriations Committee (committee roll calls recorded during session).