Short answer: If a wildfire destroys your home, Insurance Code §675.1 says your insurer can't cancel while the home is being rebuilt, except for the limited reasons in §676(a) to (e), and can't use the damaged condition alone as the reason. After a disaster-related total loss, the insurer must also offer to renew for at least the next two annual renewals, and no less than 24 months from the loss, with some exceptions. Vacancy clauses in your policy still matter for any partly damaged home that sits empty.
Your rights after a total loss
| Rule | What it says | Source |
|---|---|---|
| No cancellation while rebuilding | Only for the reasons in §676(a) to (e). The damaged condition can't be the sole basis | Ins. Code §675.1(a)(2) |
| Renewal after a disaster | Offer to renew for at least two annual renewals and at least 24 months from the loss, if the loss wasn't also due to your negligence and later changes haven't made the property uninsurable | §675.1(a)(3) |
| Limits adjusted at renewal | If rebuilding isn't finished, the insurer must consult you and adjust limits and coverages to match your exposure | §675.1(a)(1); CDI 2025 annual notice |
| Wildfire-area moratorium | No cancellation or nonrenewal for one year after an emergency declaration solely because the home is in a wildfire area (ZIP Codes in or next to the fire perimeter) | §675.1(b)(1) |
Vacancy and "under construction"
Many property policies limit or exclude certain losses, such as vandalism or glass breakage, once a building has been vacant for a set period. The policy in the case below used 60 days. In TRB Investments v. Fireman's Fund (2006), the California Supreme Court read a vacancy exclusion's "under construction" exception to mean substantial, continuing construction work, not minor repairs. If a partly damaged home sits empty while you wait for permits or a contractor, read your policy's vacancy wording and tell your insurer in writing. Ask whether a vacancy permit or endorsement is needed. Source: TRB Investments v. Fireman's Fund.
During the rebuild
- Builder's risk: Ask whether your homeowners policy covers the new structure while it's being built, or whether you or your contractor need a builder's risk policy.
- Liability on the lot: Keep liability coverage in place for an empty lot or construction site.
- Contents and ALE: See wildfire rebuild insurance rights in Los Angeles and the Palisades and Eaton rebuild checklist.
- If you're dropped: See who insures vacant homes in California.
Checklist
- Keep paying the premium. Rights under §675.1 apply while the policy stays in force.
- At renewal, review the adjusted limits with your insurer or broker.
- Get the vacancy clause and any vacancy permit in writing.
- Confirm builder's risk and site liability before construction starts.
Frequently asked questions
Can my insurer cancel my policy while I rebuild after a fire?
Not because of the damage alone. Ins. Code §675.1(a)(2) allows cancellation while rebuilding only for the reasons in §676(a) to (e).
How long must my insurer renew after a wildfire total loss?
For at least the next two annual renewals and no less than 24 months from the loss, with exceptions (§675.1(a)(3)).
Does a vacancy clause apply to a burned lot?
It depends on your policy wording. The California Supreme Court read "under construction" in a vacancy exclusion to mean substantial, continuing construction work (TRB Investments v. Fireman's Fund, 2006). Ask your insurer in writing.
Do I need builder's risk insurance?
Ask your insurer whether your policy covers the structure during construction. If it doesn't, you or your contractor may need a builder's risk policy.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.