California bans homeowners insurance cancellations in wildfire-affected areas for one year to aid recovery.
California’s insurance regulator has implemented a one-year moratorium on homeowners insurance policy cancellations in Southern California, specifically for areas impacted by recent wildfires.
This moratorium encompasses homeowners, condo owners, mobile home owners, and renters in designated zip codes affected by the Palisades and Eaton wildfires, safeguarding them from cancellations or non-renewals linked to wildfire risks.
The wildfires have resulted in significant destruction, with more than 10,000 homes and structures lost, and at least 10 fatalities reported. Collectively, over 27,000 acres have been consumed by the fires.
California Insurance Commissioner Ricardo Lara emphasised the importance of this moratorium in providing peace of mind for affected residents during this crisis. He is also working to ensure that wildfire victims receive their entitled benefits promptly.
In addition, the California Department of Insurance has urged insurance companies to halt cancellations or non-renewals that were initiated within 90 days prior to the wildfires, offering a protective pause of six months.
The Commissioner also called on insurers to extend the grace period for premium payments beyond the standard 60 days, considering the challenges faced by those in affected areas.
Residents can check if their zip codes fall under the moratorium via the Department of Insurance website. Additionally, workshops will be held to assist wildfire survivors in understanding insurance policies and claims processes.
