California Home Insurer Allowed to Drop 1,300-Plus Policies in High Wildfire Risk Areas | Insu
A year after a series of wildfires ripped through the
On
The move will "result in the non-renewal of 1,363 policies," the insurer stated in the request it filed with the
Previously, homes with Verisk FireLine scores of 7 or higher weren't eligible for coverage. Now, homes with FireLine scores of 3 or higher will be ineligible.
Where homeowners will have to seek new coverage
ZIP codes with the highest number of affected policyholders are largely in areas that
Communities in the
Other communities where First Select policies won't renew include:
Insurer says it will follow one-year moratorium on non-renewals and cancellations
A 2018 state law bars home insurance companies from canceling or non-renewing coverage on affected homes for one year following a governor-declared wildfire emergency. California Insurance Commissioner
The protections expire one year after the governor declares a state of emergency —
In its state filing, Standard Guaranty stated it will abide by the moratorium as it issues non-renewals. None of the ZIP codes where the insurer intends to drop policies are in the state's list of areas protected due to the
What's next: 75 days' notice for affected homeowners
Once affected First Select policyholders receive a non-renewal notice, they'll have 75 days before their coverage ends, Standard Guaranty said in its state filing.
Sometimes, insurers provide policyholders with options that allow them to continue coverage, such as making risk-mitigation home improvements. Standard Guaranty won't be providing that type of option, the insurer told regulators.
Reform efforts from Lara's insurance department have made some progress toward mitigating the state's insurance crisis. Some large insurers that had either reduced their business in the state or left it altogether have begun selling policies in


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