California’s Lara Orders 1-Year Moratorium for 750K Residents Following Wildfires

California Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance companies to preserve residential insurance coverage for 750,000 policyholders affected by the Airport, Bridge, and Line fires in the counties of Orange, Riverside, Los Angeles, and San Bernardino.

The commissioner’s moratorium shields those living within the perimeters or adjoining ZIP Codes of the fires from insurance non-renewal or cancellation for one year from the date of the Gov. Gavin Newsom’s emergency declarations regardless of whether they suffered a loss.

On Sept. 7, Newsom proclaimed a state of emergency covering San Bernardino County due to the Line Fire. On Sept. 11, Newsom proclaimed a state of emergency covering Los Angeles and San Bernardino counties due to the Bridge Fire and Orange and Riverside counties due to the Airport Fire.

While existing law prevents non-renewals and cancellations for those who suffer a total loss in areas subject to a declared disaster, a 2018 law established protection for those living within or adjacent to a declared wildfire emergency whether they suffer a loss or not. Homeowners who suffered a total property loss have up to 24 months of protection from non-renewal or cancellation.