California Expands Moratorium on Homeowners Insurance Cancellations, Non-Renewals
California Insurance Commissioner Ricardo Lara expanded emergency insurance protections for Southern California homeowners, adding new ZIP Codes to those already under a mandatory one-year moratorium on insurance non-renewals and cancellations.
The expanded order shields those within the perimeters or adjoining ZIP Codes of the Palisades, Eaton, Hurst, Lidia, Sunset and Woodley fires in Los Angeles County for one year from the Gov. Gavin Newsom’s Jan. 7 emergency declaration regardless of whether they suffered a loss.
Related: Los Angeles Is on Edge as Strong Winds Keep Fire Danger Elevated
Lara issued the first wave of protections last week after the Palisades and Eaton fires broke out. Lara said he will issue a supplemental order if additional ZIP Codes are within or adjacent to a fire perimeter subject to this declared state of emergency for Los Angeles and Ventura counties.
Residents and their agents can go to the California Department of Insurance website to see if their ZIP Code is included in the mandatory moratorium.
Related: LA Wildfire Insurance-Loss Estimates Approach $40 Billion
Lara also issued a notice calling on all insurance companies to stop any pending non-renewals or cancellations for any properties located near wildfires, if they are not already protected by the mandatory moratorium. This includes non-renewals issued up to 90 days prior to Jan. 7 but taking effect after the start of the wildfires. The pause on non-renewing and cancelling policies would last six months as impacted communities begin the recovery process.
In addition, Lara called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediate affected wildfire areas, to pay their home insurance premiums given the challenges that many policyholders in these areas are having.