Insurance companies could have to tell homeowners up front they could see their policies canceled after filing multiple damage claims.
That´s if new regulations proposed today by California Insurance Commissioner John Garamendi go into effect.
Garamendi says more than 40,000 Californians lose their homeowners insurance every year after filing damage claims on their houses.
But insurers are already warning his move could provoke another court battle.
A state appeals court rebuffed Garamendi´s previous attempts to stop the practice, saying he overstepped his authority.
Garamendi now wants insurers to spell out for their potential clients the specific circumstances that would cause their policies not to be renewed.
Insurers defend the industry practice as legitimate.