California's Firearm Insurance Mandate: What Gun Owners Actually Need to Know

San Jose became ground zero for a nationwide experiment in 2025. The city’s council voted overwhelmingly to require all homeowners and renters who possess firearms to maintain active firearms insurance coverage—a first-of-its-kind policy that immediately ignited debate.

The mandate is explicit. According to the San Jose ordinance, residents must “obtain and continuously maintain in full force and effect a homeowner’s, renter’s or gun liability insurance policy from an admitted insurer…specifically covering losses or damages resulting from any negligent or accidental use of the Firearm, including but not limited to death, injury or property damage.” Additionally, gun owners must carry proof of insurance at all times and face administrative hearings and firearm confiscation for non-compliance.

The timing reflects a grim reality. Gun deaths surged 30% between 2019 and 2020—marking the steepest increase in over a century, according to CDC data. Meanwhile, firearm sales exploded to an estimated 20 million units in 2021 alone. The San Jose law explicitly frames firearms as a public health crisis, devoting 15 ordinance clauses to detailing the dangers of gun ownership.

Here’s the Insurance Problem Nobody’s Talking About

Here’s where it gets complicated: No major national or regional insurer currently offers standalone firearms insurance, according to Mark Friedlander of the Insurance Information Institute. This creates an enforcement headache for San Jose officials.

Most standard homeowners and renters policies do include firearm coverage—specifically, what’s called an HO-3 policy. These typically cover stolen firearms and accidental shootings. Liability coverage extends to self-defense incidents involving “reasonable force,” though it explicitly excludes intentional criminal acts like homicide. If a homeowner’s standard coverage maxes out at $300,000, they can purchase umbrella insurance to extend protection to $1 million or beyond.

But there’s a catch: carriers have shown little enthusiasm for creating dedicated firearms insurance products. After the 2012 Newtown, Connecticut shooting, several states proposed gun liability mandates. Congress has floated a “Firearm Risk Protection Act” multiple times—most recently in 2021—which would prohibit gun purchases without liability coverage. None passed.

The Second Amendment Showdown

The National Rifle Association (NRA) is mounting a court challenge, arguing the San Jose ordinance violates Second Amendment rights to “keep and bear arms.” Their complaint centers on two issues: the insurance requirement itself may be unenforceable, and the mandate effectively functions as a “gun harm reduction fee” funneled into suicide prevention programs, domestic violence services, and firearms safety education.

NRA spokesperson Amy Hunter doubles down: “Liability insurance will never cover criminal acts, and those who break the law are already liable through our justice system. Criminals will never get the insurance or pay annual fees.” The insurance industry largely agrees, arguing that most residents already have adequate firearms coverage within their existing policies.

What This Means Going Forward

San Jose’s ordinance faces legal jeopardy—but it signals a policy inflection point. Whether courts uphold the mandate or strike it down, firearms insurance is becoming a central insurance conversation. A $73 million settlement against Remington in the Sandy Hook case suggests victims’ families are increasingly turning to civil liability as a path to accountability.

For gun owners navigating this landscape, the practical takeaway is straightforward: review your homeowners or renters insurance now. Ask your agent whether your policy covers accidental firearm injuries and liability. If coverage gaps exist, umbrella insurance remains readily available at competitive rates.