Composite educational exampleUnder reviewpersonal lineshomeowners, residential property

A composite homeowner with no fire damage receives a nonrenewal notice after a declared wildfire emergency and reads the statute that governs the moratorium

Last reviewed: August 31, 2026
Author: Aaron Bollinger
Reviewer: Brian Bollinger
Sources: 3 records

What happened

In the scenario, a wildfire burns in a California county and the Governor declares a state of emergency. A homeowner whose house is a few miles from the burn area has no damage, and several weeks later receives a notice from the insurer stating that the homeowners policy will not be renewed at expiration, with wildfire risk given as the reason. The homeowner wants to understand the statutory one year moratorium on cancellation and nonrenewal that follows a declared wildfire emergency [1] [2]. Everything in the scenario is invented; only the statutes and the Department of Insurance page are real.

What information mattered

Insurance Code section 675.1(b)(1) provides that an insurer shall not cancel or refuse to renew a policy of residential property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred [1].
Under section 675.1(b)(2) the fire perimeter is determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services, and the commissioner then issues a bulletin to inform insurers which ZIP Codes are subject to the subdivision [1].
The Department of Insurance states that the one year protection applies to all residential policyholders within the affected areas who suffer less than a total loss, including those who suffer no loss, and that it lasts one year from the date of the Governor's emergency declaration [2].
Section 675.1(d) provides that policy of residential property insurance has the meaning described in subdivision (a) of section 10087, so the section's affirmative scope is residential property insurance as defined there [1].
Section 678 requires an insurer to deliver or mail either an offer of renewal or a notice of nonrenewal at least 45 days before expiration, and for a policy expiring on or after July 1, 2020 it requires a notice of nonrenewal at least 75 days before expiration; a notice of nonrenewal must contain the specific reason or reasons for the nonrenewal [3].
Under section 678, if the required notice is not given in time, the existing policy with no change in its terms and conditions remains in effect for 45 or 75 days measured from the date the offer or notice is actually delivered or mailed [3].

The insurance question

What does the statutory one year moratorium after a declared wildfire emergency actually say, and what facts determine whether it reaches a given policy?

The reasoning path

The answer sits in three written conditions. Section 675.1(b)(1) prohibits cancellation or refusal to renew a policy of residential property insurance for a property in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred [1]. So the questions are whether the ZIP Code is in the moratorium area, whether the policy is a policy of residential property insurance as section 675.1(d) defines that term by reference to section 10087(a), and whether the action rests solely on that ground [1].

Geography is settled by documents rather than by how close the fire felt. The fire perimeter is determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services, the department supplies the commissioner with perimeter data, and the commissioner then issues a bulletin telling insurers which ZIP Codes are subject to the subdivision [1]. The Department of Insurance describes the same coordination with CAL FIRE and the Governor's Office of Emergency Services to identify perimeters and adjacent ZIP Codes [2]. The first thing to look at is therefore whether the risk address sits in a ZIP Code identified for that specific emergency.

Having no damage is not by itself a disqualifier. The Department of Insurance states that the one year protection applies to all residential policyholders within the affected areas who suffer less than a total loss, including those who suffer no loss, and that it runs one year from the date of the Governor's emergency declaration [2]. Total losses are addressed by subdivision (a) of the same section, which deals with limits, premium, cancellation during rebuilding, and renewal offers after a disaster [1].

The phrase based solely on is both the hinge and the limit. The prohibition in subdivision (b)(1) is directed at action based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, and it runs for one year [1]. That is why the reason printed on the notice matters, and why the notice mechanics matter too: section 678 requires an offer of renewal or a notice of nonrenewal before expiration on the timelines above, requires the specific reason or reasons to be stated in a nonrenewal notice, and provides that an untimely notice leaves the existing policy in effect for 45 or 75 days from the date the notice is finally delivered or mailed [3].

Whether the statute reaches a particular policy is not something an article can decide. The stated reason and the date on the notice are what the insurer and the Department of Insurance will look at, and the Department of Insurance is the agency that publishes the moratorium information and whose commissioner issues the ZIP Code bulletins [1] [2]. Whether a specific notice is valid, and whether a policy continues, is decided by the insurer, by the Department of Insurance, or by a court, and a homeowner who wants an opinion on the legal effect of a notice is asking a legal question for a lawyer.

What was decided, and by whom

No authority decided this. It is illustrative only. The statutory text and the Department of Insurance description of the moratorium are real; the homeowner, the notice, and the fire in the scenario are invented.

What cannot be generalized from this

Moratorium coverage is emergency specific. Each declared emergency has its own perimeter, its own commissioner bulletin identifying ZIP Codes, and its own one year window, so nothing here tells anyone whether a particular address is included [1] [2].
Section 675.1 as read on 2026-08-31 speaks to policies of residential property insurance as defined in section 10087(a) [1]. What governs any other line has to be found in the statute that actually addresses that line; the sources read here do not say.
Subdivision (b)(1) is directed at action based solely on the stated wildfire ground [1]. It does not tell anyone what follows when an insurer states a different ground, and other statutes govern cancellation and nonrenewal generally.
Nothing here is a determination that a particular notice was valid or invalid, or that a policy will remain in force. That is decided by the insurer, the Department of Insurance, or a court.
Statutes and bulletins change. Confirm the current text of sections 675.1 and 678 and the current bulletins before relying on the periods and deadlines recorded here.

Source ledger

3 sources. Every citation number above resolves to a record below. Nothing here sits behind an account.

[1]
California Insurance Code section 675.1(opens the original record on California Legislative Information (Legislative Counsel of California))
California Legislative Information (Legislative Counsel of California)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: Amended by the Legislature; check leginfo for the current text each session.ID ins-675-1
What this source supports (5)
Subdivision (b)(1) provides that an insurer shall not cancel or refuse to renew a policy of residential property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred.
Subdivision (b)(2) provides that the fire perimeter is determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services, that the department provides the commissioner with perimeter data, and that the commissioner then issues a bulletin to inform insurers which ZIP Codes are subject to the subdivision.
Subdivision (d) provides that for purposes of the section, policy of residential property insurance has the meaning described in subdivision (a) of Section 10087.
Subdivision (a) addresses obligations following a total loss to a primary insured residential structure, including adjusting limits and coverages at renewal, adjusting premium to reflect coverage changes, restrictions on cancellation during rebuilding, and an offer of renewal for a stated period where the loss resulted from a disaster.
The section as displayed carries the amendment note: Amended by Stats. 2018, Ch. 618, Sec. 1.5. (SB 894) Effective January 1, 2019.
Effective: 2019-01-01
Active
[2]
Mandatory One Year Moratorium on Non-Renewals (consumer page)(opens the original record on California Department of Insurance)
California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: Updated by the Department as new wildfire emergencies are declared and new moratorium bulletins are issued.ID cdi-moratorium
What this source supports (5)
The Department of Insurance states that the one year moratorium on insurance cancellations and non-renewals is authorized under California Insurance Code section 675.1.
The Department states that the protection from cancellation or non-renewal lasts for one year from the date of the Governor's emergency declaration.
The Department states that this one year protection applies to all residential policyholders within the affected areas who suffer less than a total loss, including those who suffer no loss.
The Department states that it coordinates with CAL FIRE and the Governor's Office of Emergency Services to identify wildfire perimeters and adjacent ZIP Codes within the mandatory moratorium areas.
The page describes residential property insurance policies and does not describe commercial policies.
Active
[3]
California Insurance Code section 678(opens the original record on California Legislative Information (Legislative Counsel of California))
California Legislative Information (Legislative Counsel of California)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: Amended by the Legislature; check leginfo for the current text each session.ID ins-678
What this source supports (5)
The section requires an insurer to deliver or mail to the named insured either an offer of renewal of the policy contingent upon payment of premium or a notice of nonrenewal of the policy, at least 45 days before the policy expiration.
For a policy expiring on or after July 1, 2020, the section requires the insurer to deliver or mail the notice of nonrenewal at least 75 days before the policy expiration.
A notice of nonrenewal must contain the specific reason or reasons for the nonrenewal.
If the insurer fails to give the required notice in time, the existing policy, with no change in its terms and conditions, remains in effect for 45 days from the date the offer to renew or the notice of nonrenewal is delivered or mailed, and for 75 days from that date where the 75 day requirement applies.
The section as displayed carries the amendment note: Amended by Stats. 2022, Ch. 424, Sec. 8. (SB 1242) Effective January 1, 2023.
Effective: 2023-01-01
Active

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Plain text

BestInsurance Research. "A composite homeowner with no fire damage receives a nonrenewal notice after a declared wildfire emergency and reads the statute that governs the moratorium." WJB Services, Inc. dba Bollinsure Insurance Services. Published August 31, 2026. Last reviewed August 31, 2026. Content version 2026.08.31. https://bestinsuranceresearch.com/examples/wildfire-nonrenewal-moratorium

BibTeX

@misc{bir-wildfire-nonrenewal-moratorium-2026,
  title        = {A composite homeowner with no fire damage receives a nonrenewal notice after a declared wildfire emergency and reads the statute that governs the moratorium},
  author       = {Aaron Bollinger},
  organization = {BestInsurance Research},
  institution  = {WJB Services, Inc. dba Bollinsure Insurance Services},
  year         = {2026},
  month        = {08},
  note         = {Last reviewed August 31, 2026; content version 2026.08.31},
  howpublished = {\url{https://bestinsuranceresearch.com/examples/wildfire-nonrenewal-moratorium}},
  urldate      = {2026-08-31}
}

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