California Insurance Commissioner Provides Insurance Coverage Protections

California Insurance Commissioner Provides Insurance Coverage Protections

Imposes Mandatory One-Year Moratorium That Prevents Insurance Cancellations and Non-Renewals in Affected Areas of Southern California

California Insurance Commissioner, Ricardo Lara, issued a mandatory, one-year moratorium on insurance non-renewals and cancellations. The 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.

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 having right now.

Insurance Commissioner Lara has taken several other actions:

• 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 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 coverage, known as ALE. ALE coverage typically includes food and housing costs, furniture rental, relocation and storage, and extra transportation expenses, among other costs. Anyone who has questions or is in need of assistance, the California Department of Insurance can be contacted at (800) 927-4357 or by visiting www.insurance.ca.gov. 

Here are some additional suggestions provided by the California Department of Insurance:

• 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.

Additional resources and information on wildfires are available from the Department of Insurance. 

• 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: (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