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Home insurance legislation to watch

Federal and state home insurance bills and new laws as of October 2026, from NFIP reauthorization to California claims reforms, and how to track any bill.

4HomeownersInsurance · Published October 10, 2026 · Updated October 24, 2026

Most of the law that touches your homeowners policy is state law, and the bills with the nearest deadlines are federal flood insurance reauthorization on December 11, 2026 and a wave of 2026 state laws now taking effect, led by California's wildfire claims reforms. This is a status report as of October 2026. Bills change, so each item says what it does, its status and where to confirm it.

Federal: what has a deadline

NFIP reauthorization. Congress authorized the National Flood Insurance Program through December 11, 2026 in Public Law 119-103, signed September 2, 2026, according to the text on govinfo.gov. The program lapsed twice in recent months, from October 1 to November 12, 2025 and February 1 to 3, 2026, and both gaps were fixed retroactively. During a lapse, existing policies and claims continue, but new policies and renewals can stall, which can delay a closing in a flood zone. If you are buying or renewing near a lapse date, see NFIP reauthorization and what a lapse means for you and the 30-day flood insurance waiting period.

Premium tax deduction. H.R. 9978, the Homeowners Premium Tax Reduction Act of 2026 (119th Congress, 2nd session), was introduced by Rep. Gus Bilirakis (R-Fla.) on July 30, 2026 and referred to the House Ways and Means Committee. It would let individuals deduct up to $10,000 a year of homeowners insurance premiums on their principal residence "above the line," meaning you would not need to itemize (bill text). As of October 24, 2026, Congress.gov shows no action since the referral. Far more bills stall in committee than pass.

Catastrophe reinsurance and disaster backstops. Members of Congress have proposed federal reinsurance-style programs and mitigation funding, such as the Homeowners' Defense Act of 2025 (H.R. 827), introduced by Rep. Frederica Wilson on January 28, 2025 and aimed at state catastrophe programs. As of October 24, 2026, it and the other backstop bills were still in committee. These ideas come back every session and have never passed. federal catastrophe reinsurance proposals explains the concept, and the federal role in home insurance covers what Washington already does. Insurance regulation itself remains with the states under the McCarran-Ferguson Act.

California: laws signed in September 2026

Governor Newsom signed a package of claims-handling bills in September 2026. The California Department of Insurance's announcement of September 28 describes two of them.

SB 876, the Disaster Recovery Reform Act (Sen. Padilla). Effective January 1, 2027 per the department, it requires insurers to file a disaster recovery plan for review in advance, doubles penalties for fair claims practice violations during a declared emergency, requires restitution to be paid directly to policyholders for unfair claims settlement practices, requires a status report within 15 days when a new adjuster is assigned, requires insurers to offer extended replacement cost and additional living expenses coverage when a policy is written, and applies ordinance or law coverage coverage at the time of rebuild rather than the time of loss.
AB 1795, the Smoke Damage Recovery Act (Asm. Gipson). Trade press reports a rebuttable presumption that smoke or combustion byproducts found in a surviving home inside a wildfire impact zone came from that fire, and a requirement for state health-based testing standards by June 30, 2027. The department describes it as protecting families from hidden smoke damage. Confirm the chaptered text on the Legislature's site before relying on the details.
SB 1301. Reported to lengthen the nonrenewal notice from 75 to 90 days, and to 120 days when the cause is something the policyholder can fix. We could verify this only through news summaries. Read california's home insurance crisis for context, and check the statute for your policy's date.

The California story also includes the Sustainable Insurance Strategy rules; see California's Sustainable Insurance Strategy.

Other states in 2026

Colorado. Governor Polis signed SB26-155 in June 2026. According to Insurance Journal, it creates an enterprise that starting in 2027 charges admitted homeowners insurers an annual fee of 0.5% of premiums collected in Colorado. At least 85% of the revenue goes to grants for hail and wind retrofits such as resilient roofs, with the remainder for hail data, roof standards, contractor codes of conduct and a wildfire study. Proponents say it will lower premiums over time; critics note the fee is a cost on premiums that insurers may pass through. A 2025 law, HB25-1182, is reported to take effect July 1, 2026 and to require disclosure of wildfire models, a written wildfire risk score and a way to appeal it. Verify with the Colorado Division of Insurance.

Florida. The Florida Department of Financial Services lists 2026 changes: SB 1028 (effective June 16, 2026) requires Citizens to use clearinghouses for commercial properties; SB 1452 (June 26, 2026) revises My Safe Florida Home eligibility and has public adjusters answer consumer requests within 14 days; and HB 7031E extends the home hardening sales tax exemption through June 30, 2029. See the state's property insurance changes page and florida's 2022–2023 property insurance reforms explained.

Michigan. Senate Bill 1129, introduced by Sen. Mary Cavanagh on July 29, 2026, would require home insurers to give an actuarially justified premium discount, or another premium reduction, when a home is built or retrofitted to the IBHS FORTIFIED Home roof standard and certified by an IBHS-certified evaluator. It would apply to policies issued or renewed after December 31, 2027. It is part of a three-bill package (SB 1128 to 1130) that would also create a Strengthen MI grant program for FORTIFIED roof retrofits, according to the Senate Fiscal Agency analysis of October 13, 2026. As of October 24, 2026, the bill sits in the Senate Finance, Insurance, and Consumer Protection Committee. Michigan's 2025-2026 session ends December 31, 2026, and bills that have not passed by then die.

Hawaii. Governor Green signed SB 2964 as Act 256 on July 14, 2026, and it takes effect January 1, 2027. At least once every two years, your homeowners insurance producer must send you a paper notice saying you can submit information about improvements to the home, including their type and cost, for an updated replacement cost estimate. The insurer must then re-estimate replacement cost. If your dwelling limit is below it, the insurer must offer added coverage up to the full replacement cost, quote the premium, keep the offer open for 30 days and renew it each year. Each violation carries a $250 fine (enacted text). The law responds to the underinsurance found after the 2023 Maui wildfires.

Why the same themes keep returning

Three issues drive most bills.

Claims handling after disasters. Deadlines, adjuster contact, smoke and ALE rules. Backers say insurers need firmer standards; insurers say rigid deadlines can lengthen reviews in catastrophe surges and raise costs.
Mitigation money. Grants and discounts for roofs, windows and defensible space. Few object in principle, but funding and fees are contested. See The FORTIFIED Home standard and insurance discounts.
Availability. Limits on nonrenewals, moratoriums, residual market reforms and rate review. Consumer groups want more protection; insurers say rates must reflect risk or they leave. The balance is covered in why insurers are pulling out of states.

How to track a bill that affects you

Find your state legislature's site and search the bill number or keywords such as "homeowners," "property insurance" or "nonrenewal."
Read the bill summary and the analysis from committee staff, which is usually more readable than the text.
Check status: introduced, in committee, passed one chamber, sent to the governor, signed. Most bills die in committee.
Check the effective date, which is often several months after signing, and whether it applies to policies issued or renewed after that date or to claims filed after it.
Ask your agent or your state insurance department how it will change your policy. Start from the home insurance rules by state.
Contact your legislator. Written, specific comments about your own experience are noticed.

Key takeaways

NFIP is authorized through December 11, 2026; a lapse stalls new and renewing flood policies but not existing claims.
California's September 2026 reforms, including SB 876 effective January 1, 2027, tighten claims handling after declared emergencies.
Colorado's SB26-155 funds hail and wind retrofit grants from a 0.5% fee on premiums starting in 2027.
Most proposed bills never become law, so look at a bill's stage and effective date before assuming it applies.
Check the primary source (legislature or insurance department) for any detail that affects your decisions.

Terms used in this guide

National Flood Insurance Program (NFIP) The federal program, run by FEMA since 1968, that makes flood insurance available to owners and renters in communities that adopt floodplain management rules. FORTIFIED Home A voluntary construction standard from the insurer-funded IBHS that strengthens a house against wind, hail and storm damage, with certified designations. Wildfire risk score A number a modeling vendor assigns to a property to estimate its exposure to wildfire, which insurers use to accept, price or decline coverage. Extended replacement cost Extra dwelling coverage, often 25% or 50% above the Coverage A limit, that helps pay to rebuild when the actual cost after a loss exceeds the limit. Additional living expenses The increase in your normal costs of living, such as hotel bills, restaurant meals and extra mileage, after a covered loss forces you out of your home. Nonrenewal An insurer's decision to end coverage at the end of the policy period by declining to offer another term, as opposed to ending it partway through.

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