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Committee advances bill expanding wildfire nonrenewal moratorium to commercial policies
Summary
SB 547 would extend existing post‑disaster moratoria on cancellations and nonrenewals to commercial property insurance within wildfire perimeters or adjacent ZIP codes for one year after a state emergency is declared.
SB 547, carried in committee by Senator Rubio as a coauthor and sponsored by the Department of Insurance, would extend the existing residential moratorium on cancellations and nonrenewals after a declared state emergency to certain commercial property policies covering entities such as HOAs, condominiums, affordable housing, small businesses and nonprofits.
Josephine Figueroa of the Department of Insurance said the extension would protect commercial entities that are essential to community recovery and continuity, including food banks, HOAs and affordable housing units. “To truly support recovery, we have to do everything we can to sustain local economies, preserve livelihoods, and prevent the added burden of sudden insurance cancellation,” Figueroa testified.
Supporters included county boards of supervisors, consumer groups and the California Association of Realtors. Major insurer groups that had earlier opposed the bill — including the American Property Casualty Insurance Association and the Pacific Association of Domestic Insurers — withdrew opposition after negotiations and the author’s amendments.
Opposition was removed by several industry groups following late amendments that narrowed scope and addressed earlier carrier concerns; committee staff and the author said the bill had been refined to avoid unintended consequences for the insurance market. The committee voted to pass SB 547 to Appropriations. Roll call recorded an affirmative majority and the chair left the roll open for absent members (committee roll recorded multiple ayes; formal tally from recorded roll: yes 14; others left on call).
Supporters argued the extension is practical because wildfires increasingly affect entire communities and many commercial policyholders face the same recovery challenges as homeowners. Industry negotiators said they would continue to monitor implementation and work with the department and author to minimize market disruption.
