California bans insurance cancellation, non-renewals in LA areas affected by fires
The state of California's insurance regulator on Friday announced a one-year moratorium on the cancellation of homeowners insurance policies in areas of Southern California that have been affected by this week's devastating wildfires.
The California Department of Insurance (CDI) announced that the mandatory one-year moratorium will prevent insurers from canceling or not renewing homeowners' policies in specific areas affected by the Palisades and Eaton wildfires in the Los Angeles area.
The moratorium applies to all homeowners, condo unit owners, mobile home homeowners or residential renters insurance policies in specified zip codes. It covers cancellations and non-renewal due to wildfire risk.
As of Friday, the fires have destroyed over 10,000 homes, buildings and other structures, according to local officials. At least 10 people have been killed by the fires. The Kenneth, Hurst and Lidia fires, along with the Palisades and Eaton fires, have collectively burned more than 27,000 acres in the area.
"My heart goes out to my fellow Angelenos. Our top priority is protecting Californians during this crisis and helping us recover," California Insurance Commissioner Ricardo Lara said in a statement. "I am using my moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don't face the added stress of finding new insurance during this horrific event."
"I am working on all fronts to make sure wildfire victims get the benefits they are entitled to, and they get it as soon as possible," Lara added.
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CDI also issued a notice that called for insurance companies to stop pending non-renewals or cancellations for any properties near wildfires if they aren't already protected by the moratorium. The notice applies to non-renewals or cancellations that were issued up to 90 days prior to Jan. 7, when the wildfire outbreak began, but take effect after the start of the wildfires.
The pause on the non-renewal and cancellation of policies would last six months as communities begin the recovery process. Lara also called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediately affected wildfire areas to pay their home insurance premiums given the challenges facing many in those areas.
FOX Business reached out to CDI regarding the moratorium and notice.
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Zip codes covered by the moratorium for the Palisades Fire include 90049, 90265, 90272, 90290, 90402, 91301, 91302, 91320, 91356, 91361, 91364 and 91436.
Eaton Fire zip codes subject to the moratorium include 91001, 91006, 91007, 91011, 91016, 91020, 91024, 91042, 91101, 91103, 91104, 91106, 91107, 91108, 91206, 91208, 91214, 91706, 91731, 91732, 91775, 91780 and 93563.
Area residents can go to the Department of Insurance website to see if their zip code is included in the moratorium.
The CDI said the agency may submit a supplemental bulletin if additional zip codes are determined to be within or adjacent to a fire perimeter subject to the governor's declared state of emergency for Los Angeles and Ventura counties.
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Lara also announced free two-day insurance support workshops open to all affected by the wildfires that will be held on Jan. 18 and 19 in Santa Monica and Jan. 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, as well as provide information about the rebuilding and recovery process.