The homeowners forms are covered in the national guide. California's homeowners questions focus on cancellation and nonrenewal of residential property (CIC 675 to 679), required disclosures, replacement cost estimates (10 CCR 2695.183), earthquake rules, and the post-disaster protections passed after recent wildfires (CIC 2051.5, 2060, 10103.7).

Cancellation and nonrenewal (CIC 675 to 678)

Scope. These rules apply to residential real property of no more than four dwelling units (CIC 675).

Cancellation.

• During the first 60 days of a new policy, the insurer may cancel for underwriting reasons with proper notice.
• After that, or on a renewal, it may cancel only for (CIC 676):
  • nonpayment
  • conviction of a crime that increases the hazard
  • fraud or material misrepresentation
  • grossly negligent acts that increase the hazard
  • physical changes that make the property uninsurable
• The notice must state the ground and supporting facts and tell the insured the Department of Insurance can review the cancellation (CIC 677).
• Under the standard fire policy, the insurer cancels on 20 days' notice, or 10 days for nonpayment (CIC 2071).

Nonrenewal and renewal changes (CIC 678):

• If the nonrenewal notice is late, the policy continues unchanged for 75 days after notice.
• A nonrenewal notice must point the insured to the Home Insurance Finder, the FAIR Plan, and difference-in-conditions coverage.

Disaster protections

• Wildfire moratorium. After a wildfire emergency, insurers may not cancel or nonrenew residential policies in ZIP codes within or next to the fire perimeter, based solely on the fire's location, for one year (CIC 675.1(b)).
• Renewal after a total loss. After a disaster total loss the insured didn't cause through negligence, the insurer offers at least two annual renewals, covering at least 24 months (675.1(a)(3)).
• Premium grace period: 60 days in the emergency area (CIC 2062).
• Additional living expense (CIC 2060, 2061):
  • at least 24 months, plus up to 12 more for delays beyond the insured's control
  • an advance of at least four months of ALE on request after a total loss
  • at least two weeks of ALE, with extensions, when a civil authority order bars access to an undamaged home
• Replacement cost time limits (CIC 2051.5):
  • at least 12 months from the first ACV payment to collect replacement cost, or 36 months for state-of-emergency losses
  • six-month extensions for good cause
  • an insured may rebuild or buy elsewhere and receive up to the cost to rebuild on the original site, with no deduction for land value
• Contents advance. After a state-of-emergency total loss of a furnished primary home, the insurer offers at least 60% of the contents limit, up to $350,000, without an itemized inventory. This is the rule as amended effective 2026 (CIC 10103.7(b)).
• Combining limits. The insured may combine the dwelling and other structures limits if needed to rebuild (10103.7(a)).
• Suit limit: 12 months, or 24 months for state-of-emergency losses (CIC 2071).

Disclosures and valuation

• A homeowners policy comes with the Residential Property Insurance Disclosure, with a signed acknowledgment within 60 days, or mailed within 3 business days of a phone application (CIC 10102). It also comes with the Residential Property Insurance Bill of Rights (CIC 10101, 10103.5). Renters and condo-unit policies get the Bill of Rights.
• The declarations page must state that the dwelling limit is based on an estimate of the cost to rebuild (CIC 10103).
• Replacement cost estimates (10 CCR 2695.183):
  • They must include labor, materials, overhead and profit, demolition and debris removal, and permits and architect's plans.
  • They may not be based on land value or the loan amount, and may not deduct depreciation.
  • A phone estimate is mailed within 3 business days. Records are kept for the policy term plus five years.
  • A noncompliant estimate is a misleading statement under the Unfair Practices Act.
• A new estimate goes out with the renewal every other year, with limited exceptions (CIC 10103.4).
• Actual cash value on a structure is replacement cost less fair depreciation, applied only to components that normally wear out (CIC 2051).
• To collect full replacement cost, the insured generally must actually repair or replace.

Earthquake

• Insurers must offer earthquake coverage with residential policies (CIC 10081).
  • The offer may come up to 60 days after issue or renewal.
  • It's presumed declined if not accepted within 30 days.
  • It's re-offered every other year.
• Without earthquake coverage, a loss where earthquake is a proximate cause isn't covered (CIC 10088), but fire following an earthquake is still covered (10088.5).
• The California Earthquake Authority sells residential earthquake policies only through participating insurers, with percentage deductibles.

Common exam traps

• Residential nonrenewal notice is 75 days. 45 days applies only to renewal offers that cut coverage.
• Cancellation notices must mention Department review.
• ALE after a disaster: 24 months + 12. Replacement cost after a disaster: 36 months.
• The contents advance is 60%, up to $350,000, as amended for 2026.
• Fire following earthquake is covered even without earthquake coverage.