In wake of fires, Calif. issues 1-year moratorium on insurance cancellations

In the wake of historic wildfires burning throughout the Los Angeles area, California Insurance Commissioner Ricardo Lara has issued a mandatory one-year moratorium on insurance non-renewals and cancellations. The Commissioner’s Bulletin issued Thursday shields those within the perimeters or adjoining ZIP Codes of the Palisades and Eaton fires in Los Angeles County for one year from Gov. Gavin Newsom’s Jan. 7 emergency declaration, regardless of whether they suffered a loss.

Lara’s action comes after heavy losses from previous wildfires led several major insurers to pull back from the California marketplace recently.

As firefighters continue to battle wildfires across the region, the California Department of Insurance may issue a supplemental bulletin if additional ZIP codes are determined to be within or adjacent to a fire perimeter subject to this declared state of emergency for Los Angeles and Ventura counties.

'Protecting Californians' a top priority

“Our top priority is protecting Californians during this crisis and helping us recover,” Lara said in a news release. “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.”

Residents can go to the Department of Insurance website to see if their ZIP code is included in the moratorium. Consumers should contact the Department of Insurance at 800-927-4357 or via chat or email at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.

Lara also announced a free two-day insurance support workshop on January 18 and 19 to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery. This workshop is open to all those impacted by the recent wildfires. Additionally, the department is planning another insurance support workshop for those affected by the Eaton Fire and others in Northeast Los Angeles County. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert.

Other actions taken by Lara

Lara took several other actions in the wake of the wildfires.

• Protecting access to health care and medication: Issued a notice directing companies to submit emergency plans detailing how they will ensure continued access to medically necessary health care services for the duration of the state of emergency.
• Cracking down on fraud: Lara is sending the Department’s enforcement team to safeguard Angelenos from fraudsters who are targeting wildfire survivors.
• Ensuring fair risk assessment: Newly enacted reforms are now in effect to ensure insurance companies accurately assess risk and set premiums fairly for consumers.
• Alerting residents to evacuation benefits: Many consumers are unaware that they may have coverage under their homeowners’ and renters’ insurance policies to help them with evacuation and recovery expenses.

Lara told residents in Los Angeles County who have been ordered to evacuate due to the wildfires that their homeowners’ or renters’ insurance may help with evacuation and relocation costs under Additional Living Expenses coverage, known as ALE. ALE coverage typically includes food and housing costs, furniture rental, relocation and storage, and extra transportation expenses, among other costs.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.