California prohibits cancellation and non-renewal of insurance in areas of Los Angeles affected by fires

The California state insurance regulator on Friday announced a one-year moratorium on canceling 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 owners or residential renters insurance policies in specific ZIP codes. Covers cancellations and non-renewal due to forest fire risk.

As of Friday, the fires have destroyed more than 10,000 homes, buildings and other structures, according to local officials. At least 10 people have died from 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.

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Chimneys lie among the rubble after the Palisades Fire passed through Pacific Palisades, California, on Wednesday. (Agustín Paullier/AFP via Getty Images/Getty Images)

“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 not renewing policies in areas affected by bushfires, so that people do not face the additional stress of finding new insurance during this horrific event.”

“I am working on all fronts to ensure that wildfire victims get the benefits they are entitled to and do so as soon as possible,” Lara added.

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Plumes of smoke are seen as a wildfire burns in Pacific Palisades, California, on Tuesday. (David Swanson/AFP via Getty Images/Getty Images)

CDI also issued a notice asking insurance companies to suspend pending non-renewals or cancellations of any properties near wildfires if they are not already protected by the moratorium. The notice applies to non-renewals or cancellations that were issued up to 90 days before Jan. 7, when the wildfire outbreak began, but take effect after the wildfires began.

The pause on non-renewal and cancellation of policies would last six months while communities begin the recovery process. Lara also called on insurers to offer beyond the 60-day grace period under existing law for policyholders in areas immediately affected by wildfires to pay their home insurance premiums, given the challenges many in those areas face. .

FOX Business contacted CDI regarding the moratorium and notice.

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Khaled Fouad, left, and Mimi Laine inspect a family member’s property in Altadena, California, that was destroyed by the Eaton Fire on Thursday. (Justin Sullivan/Getty Images/Getty Images)

ZIP codes covered by the Palisades Fire moratorium 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.

Residents of the area can go to the Department of Insurance website to see if your 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 state of emergency declared by the governor for Los Angeles wildfires and Ventura counties.

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Lara also announced free two-day insurance support workshops, open to everyone affected by the wildfires, taking place Jan. 18-19 in Santa Monica and Jan. 25-26 in Pasadena to help survivors understand their insurance policies and the claims process. as well as provide information about the reconstruction and recovery process.