California Insurance Commissioner Issues Moratorium on Homeowners’ Insurance Cancellations and Non-Renewals Following Palisades and Eaton Fires
On Thursday night, California Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium, protecting homeowners’ insurance coverage in areas affected by the Palisades and Eaton fires.
What is the Moratorium?
The moratorium will prohibit insurance companies from enacting non-renewals and cancellations until January 7, 2026. This applies to all homeowners within the perimeters or adjoining ZIP codes of the two fires in Los Angeles County, regardless of whether they suffered a loss.
Why was the Moratorium Issued?
“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” said Lara. “This law gives millions of Californians breathing room and hits the pause button on insurance non-renewals while people recover.”
How Can Homeowners Check if They are Affected?
Residents can go to the Department of Insurance website to see if their ZIP code is included in the moratorium.
What Should Homeowners Do During this Time?
- Keep all receipts during your evacuation.
- Policy provisions, including deductibles, vary by company, and residents should check with their insurance company or agent as soon as possible to confirm coverage, limits, and any other limitations and documentation requirements. Most renter’s policies also typically include ALE coverage.
- Document the date, time, and names of any insurance company employees you speak to regarding your coverage.
- Consumers should make sure any insurance agent or public adjuster offering their services has a valid license by checking online with the Department of Insurance.
- Download the Department’s Top 10 Tips for Wildfire Claimants (also available in Spanish, Mandarin, and Vietnamese), which includes information about claiming ALE benefits.
- Under existing law, public adjusters cannot solicit business for seven calendar days after a disaster.
- Don’t forget copies of insurance policies, important papers, and a photo or video inventory of your possessions. An inventory can be completed quickly and easily on your smart phone and safely stored in the Cloud.
Conclusion
The moratorium aims to provide relief to homeowners affected by the Palisades and Eaton fires, giving them time to recover without worrying about losing their insurance coverage. Homeowners can check if they are affected and take steps to prepare for the moratorium.
FAQs
Q: What areas are affected by the moratorium?
A: The moratorium applies to all homeowners within the perimeters or adjoining ZIP codes of the two fires in Los Angeles County.
Q: How long does the moratorium last?
A: The moratorium will be in effect until January 7, 2026.
Q: How can I check if my ZIP code is affected?
A: Residents can go to the Department of Insurance website to see if their ZIP code is included in the moratorium.
Q: What should I do if I believe my insurance company is in violation of this law?
A: Homeowners are encouraged to contact the Department of Insurance at 800-927-4357 or via chat or email at insurance.ca.gov.
