Quick Answer
SB 547 is a California law signed on October 10, 2025 (Chapter 544, Statutes of 2025). It adds Insurance Code section 675.55 and bars insurers from canceling or declining to renew a commercial property insurance policy for one year after a governor's state of emergency is declared, when the property is inside the wildfire perimeter or in an adjacent ZIP code. The Insurance Commissioner has described the protection as reaching commercial policies held by groups such as HOAs, affordable housing providers and nonprofits.
What the Law Does
- One-year protection. For one year from the declaration of a state of emergency, an insurer cannot cancel or refuse to renew a covered commercial property policy.
- Location test. The property must be within the perimeter of the wildfire or in an adjacent ZIP code.
- Broad support. The bill passed the Legislature with near-unanimous votes, including a 79-1 Assembly vote and a 36-0 Senate concurrence vote, according to the Insurance Commissioner's office.
It builds on earlier protections for homeowners' policies after wildfire emergencies and extends the idea to commercial property coverage. Read the <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB547" target="_blank" rel="noopener noreferrer">chaptered text of SB 547</a> for the exact wording.
Why It Matters for HOAs and Condo Associations
Most associations carry commercial property insurance on common areas and, for condominiums, often on the building structure. Losing that coverage in a high-fire-risk area can leave a community unable to meet lender requirements and exposed to a loss it cannot fund. Davis-Stirling requires associations to maintain certain insurance, so a nonrenewal can quickly become a governance problem. SB 547 gives boards a one-year window after an emergency to find replacement coverage, if the association's property falls within the law's location test.
What SB 547 Does Not Do
- It does not guarantee coverage or cap premiums. An insurer may still raise prices where the law allows.
- It does not apply to every association: the location test (inside the perimeter or an adjacent ZIP code) and the emergency declaration both matter.
- It protects against cancellation and nonrenewal for a period, not against changes in coverage terms the law does not address.
Because the Commissioner's summaries and the bill text can differ in emphasis, confirm with your association's attorney or insurance broker whether your policy and location are covered.
Board Checklist
- Put your property policy's renewal date and the insurer's notice deadlines on the board calendar.
- Ask your broker how SB 547 applies to your association's location and policy type.
- Get quotes from more than one carrier well before renewal, and ask about any wildfire mitigation steps that could help.
- Review your coverage limits and deductibles, and ask whether the reserve fund can cover the deductible.
- Document defensible-space and fire-hardening work that the association controls, as insurers often ask about it.
- Keep owners informed about any change in coverage, since owners may need to adjust their own policies.
For more on coverage basics, see our California HOA insurance guide and Bay Area HOA insurance in 2026. For other recent legislation, see the 2027 laws overview.
Frequently Asked Questions
When was SB 547 signed?
The Governor approved it on October 10, 2025, and it was chaptered as Chapter 544, Statutes of 2025.
Does SB 547 apply to HOAs?
The Insurance Commissioner has described the law as expanding the protection to commercial policies, including those held by HOAs. Check the chaptered text and your policy with your attorney or broker.
How long does the protection last?
One year from the declaration of the state of emergency.
Can my insurer still raise my premium?
The law restricts cancellation and nonrenewal, not pricing generally. Ask your broker what rate changes the insurer is allowed to make.
What if my association is not near a wildfire?
The protection is tied to a wildfire emergency and to the property's location, so it would not apply to a community outside those areas.
How APM Helps
APM manages community associations in California and Michigan, from budgets and insurance renewals to vendor oversight and board meetings. See our California board and homeowner resources, the California communities we serve, or request a free proposal.
This article is general information, not legal advice. Laws and documents vary by community; ask your association's attorney about your situation. Last verified October 24, 2026.
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