California state Sen. Ben Allen, D-Pacific Palisades, introduced legislation Friday that would require property insurers to give policyholders six months' notice before dropping their coverage and explain the specific reasons for doing so.

Senate Bill 1301 would also prohibit insurers from nonrenewing a policy solely because a policyholder inquired about a claim, filed a claim that was not paid, or filed a claim that fell within their deductible.

California policyholders face the fourth-highest rate of nonrenewals in the nation, according to a 2024 congressional investigation. The state's FAIR Plan, which serves as the insurer of last resort, has seen its total exposure increase by 230% since 2022.

Under the bill, policyholders would have the opportunity to make repairs or adjustments to their property to maintain coverage before a nonrenewal takes effect.

"Too many Californians are losing this critical support system without a proper explanation or opportunity to retain coverage, unnecessarily risking their livelihoods," Allen said. "SB 1301 will put an end to that."

The bill is sponsored by the Eaton Fire Survivors Network, which represents more than 10,000 survivors of the Palisades and Eaton fires.

"Right now, people are being dropped without warning or explanation, left scrambling and scared," said Joy Chen, the organization's executive director. "Californians deserve a fair chance to stay insured and protect the life we've built."

Consumer Watchdog is co-sponsoring the measure.

"Insurance companies have rules about what homes they cover but families losing coverage never get a chance to meet them," said Carmen Balber, the group's executive director. "SB 1301 gives consumers information they can act on to keep their policy, and a right to use their insurance without losing it."