California Insurance Commissioner Ricardo Lara announced a temporary ban on insurance companies canceling or refusing to renew home insurance policies for residents impacted by the devastating Palisades and Eaton wildfires in Los Angeles County.
The moratorium, effective for one year, applies to homeowners within the fire perimeters and surrounding ZIP codes, regardless of whether they suffered a loss, following Governor Gavin Newsom’s January 7 emergency declaration.
The Eaton Fire in Altadena has already damaged or destroyed approximately 5,000 structures, while the Palisades Fire has destroyed over 5,300 structures in areas including Pacific Palisades and Malibu. The widespread devastation has left thousands of residents grappling with the aftermath, making insurance stability a critical concern.
California Officials Have Placed A 1-Year Moratorium On Insurance Cancellations And Non-Renewals For Residents Impacted By LA Fires pic.twitter.com/mPUltYXziS
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“I am using my moratorium powers to stop all nonrenewals and cancellations, Commissioner Lara said in a press conference on Friday. “Last night, I issued a bulletin to protect homeowners affected by the Palisades and Eaton fires from non-renewals and cancellations by your insurance companies for one year under a moratorium law that I wrote while I was serving in the State Senate.”
The Department of Insurance has also urged insurers to provide additional relief. This includes a six-month pause on non-renewals or cancellations issued between October 9 and January 7. Lara further called for extending the grace period for premium payments for those impacted beyond the standard 60-day period.
Residents can verify if their ZIP code is included in the moratorium by visiting the Department of Insurance’s website. Those seeking assistance with insurance-related issues or other questions can contact the department at 800-927-4357.
