California Insurance Commissioner Provides Insurance Coverage Protections

California Issues One-Year Moratorium on Insurance Cancellations in Wildfire-Affected Areas

California Insurance Commissioner, Ricardo Lara, issued a mandatory, one-year moratorium on insurance non-renewals and cancellations. This moratorium shields property owners within the perimeters or adjoining ZIP Codes of the Palisades and Eaton fires in Los Angeles County for one year from the Governor’s January 7th emergency declaration, regardless of whether they suffered a loss. As firefighters continue to battle wildfires across the region, the Insurance Department may expand protected areas 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.

Moratorium Details:

• Who is Protected: Property owners in the Palisades and Eaton fire areas, as well as adjacent ZIP Codes, are covered for one year from January 7th.
• Potential Expansion: The Insurance Department may expand protected areas if additional ZIP Codes are deemed affected.
• Scope of Moratorium: Prevents non-renewals and cancellations, including those within 90 days of January 7th but after the wildfires started.

Expanded Protections for Affected Communities

To provide additional stability for communities near the wildfires, Insurance Commissioner Lara also issued a Notice calling on all insurance companies to stop any pending non-renewals or cancellations for any properties located near wildfires, if they are not already protected by the mandatory moratorium. This includes non-renewals issued up to 90 days prior to January 7th, but taking effect after the start of the wildfires.

This moratorium on non-renewing and cancelling policies would last six months as impacted communities begin the recovery process. In addition, Commissioner Lara called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediately affected wildfire areas, to pay their home insurance premiums, given the challenges that many policyholders in these areas are facing right now.

Additional Actions by the Insurance Commissioner

Insurance Commissioner Lara has taken several other actions to support affected communities:

• 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 declared State of Emergency due to the Palisades, Eaton, and other fires.
• Cracking Down on Fraud: Commissioner 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.

Insurance Coverage for Evacuations

Insurance Commissioner Lara has advised 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 (ALE) coverage.

• What Is Covered: Evacuation costs, housing, food, furniture rental, relocation, and transportation expenses.
• Contact Information: For more information or assistance, call (800) 927-4357 or visit www.insurance.ca.gov.

Additional Tips and Resources

Here are some additional suggestions provided by the California Department of Insurance for residents affected by wildfires:

• Keep All Receipts: Documentation is key for reimbursement.
• Check Your Policy: Verify coverage, limits, and documentation requirements with your insurance company.
• Document Communication: Record dates, times, and names of insurance company representatives.
• Validate Public Adjusters: Ensure they have a valid license by checking online with the Department of Insurance.
• Download Wildfire Claimant Tips: Available in multiple languages, including Spanish, Mandarin, and Vietnamese.
• Don’t Solicit Within Seven Days: Public adjusters cannot solicit business for seven days post-disaster.
• Important Documents: Keep copies of insurance policies and an inventory of possessions. A quick and easy inventory can be done via smartphone and stored safely in the Cloud.

Additional Resources

For more assistance and resources, the following agencies and organizations are available:

• California Governor’s Office of Emergency Services (Cal OES): (916) 657-9494 or www.caloes.ca.gov
• California Department of Forestry and Fire Protection (CAL FIRE): www.fire.ca.gov
• Federal Emergency Management Agency (FEMA): (800) 621-FEMA (3362) or www.fema.gov
• Contractors State License Board: (800) 321-CSLB (2752) or www.cslb.ca.gov
• National Insurance Crime Bureau: (888) 815-9064 or www.nicb.org