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Daycare Center and Family Home Forum>PSA- Law Protecting California Childcare Providers
spedmommy4 01:44 PM 05-06-2016
This is just a public service announcement. I just had a horrible experience with my home owners insurance policy. In the process, I learned that California has a law in place to protect childcare providers against homeowner's policy cancellations.
California insurance code 676.1 states
676.1. (a) The arbitrary cancellation of a policy of homeowners' insurance solely on the basis that the policyholder has a license to operate a family day care home at the insured location shall subject the insurer to administrative sanctions authorized by this code unless, there has been a material misrepresentation of fact, the risk has changed substantially since the policy was issued, there has been a nonpayment of premium, or the insurer no longer writes homeowners policies.
(b) The arbitrary refusal to renew a policy of homeowners'
insurance solely on the basis that the policyholder has a license to operate a family day care home at the insured location shall subject the insurer to administrative sanctions authorized by this code unless, there has been a material misrepresentation of fact, the risk has changed substantially since the policy was issued, there has been a nonpayment of premium, or the insurer no longer writes homeowners' policies. For purposes of this subdivision, an insured's purchase of a policy of homeowner's insurance to cover a new, primary residence from the same insurer which insured his or her previous primary residence, provided that the insurer then underwrites homeowners' insurance in the geographic area containing the new residence, shall be deemed a renewal of the policy on the previous, primary residence.
(c) It shall be against public policy for a residential property insurance policy to provide coverage for liability for losses arising out of, or in connection with, the operation of a family day care home. This coverage shall only be provided by a separate endorsement or insurance policy for which premiums have been assessed and collected.
Just letting everyone know so that you can be armed with information if your insurance threatens to cancel you too.
California insurance code 676.1 states
676.1. (a) The arbitrary cancellation of a policy of homeowners' insurance solely on the basis that the policyholder has a license to operate a family day care home at the insured location shall subject the insurer to administrative sanctions authorized by this code unless, there has been a material misrepresentation of fact, the risk has changed substantially since the policy was issued, there has been a nonpayment of premium, or the insurer no longer writes homeowners policies.
(b) The arbitrary refusal to renew a policy of homeowners'
insurance solely on the basis that the policyholder has a license to operate a family day care home at the insured location shall subject the insurer to administrative sanctions authorized by this code unless, there has been a material misrepresentation of fact, the risk has changed substantially since the policy was issued, there has been a nonpayment of premium, or the insurer no longer writes homeowners' policies. For purposes of this subdivision, an insured's purchase of a policy of homeowner's insurance to cover a new, primary residence from the same insurer which insured his or her previous primary residence, provided that the insurer then underwrites homeowners' insurance in the geographic area containing the new residence, shall be deemed a renewal of the policy on the previous, primary residence.
(c) It shall be against public policy for a residential property insurance policy to provide coverage for liability for losses arising out of, or in connection with, the operation of a family day care home. This coverage shall only be provided by a separate endorsement or insurance policy for which premiums have been assessed and collected.
Just letting everyone know so that you can be armed with information if your insurance threatens to cancel you too.
CalCare 05:57 PM 05-06-2016
Wow good to know thanks