California bans insurance cancellations and non-renewals in Los Angeles areas affected by fires

The California Insurance Regulatory Commission on Friday announced a one-year moratorium on canceling homeowners’ insurance policies in areas of Southern California affected by flooding this week. Devastating forest fires.

The California Department of Insurance (CDI) announced that a mandatory one-year moratorium will prevent insurers from canceling or not renewing homeowners’ policies in specific areas affected by the Palisades and Eaton wildfires in California. Los Angeles area.

The moratorium applies to all homeowners, condominium owners, mobile homeowners or condominium renters insurance policies in designated zip codes. It covers cancellations and non-renewals due to bushfire risk.

As of Friday, the fires had destroyed more than 10,000 homes, buildings and other structures, according to local officials. At least 10 people died as a result of the fires. The Kenneth, Hurst, and Lydia fires, along with the Palisades and Eaton fires, have burned more than 27,000 acres in the area.

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“My heart goes out to my fellow Angelenos,” California Insurance Commissioner Ricardo Lara said in a statement. “Our top priority is protecting Californians during this crisis and helping us recover.” “I’m using my moratorium powers to prevent insurance companies from doing so Cancellation or non-renewal policies “In areas affected by bushfires, so that people do not face the additional stress of finding new insurance during this horrific event.”

“I am working on all fronts to make sure bushfire victims get the benefits they are entitled to, and that they get them as soon as possible,” Lara added.

Help people affected by the California wildfires here

CDI has also issued a notice calling for the same Insurance companies To stop pending non-renewals or cancellations for any properties close to wildfires if they are not already protected under the moratorium. The notice applies to non-renewals or cancellations that were issued 90 days before Jan. 7, when the wildfire outbreak began, but became effective after the wildfire started.

The pause on non-renewal and cancellation policies will continue for six months as communities begin the recovery process. Lara also called on insurance companies to immediately provide a grace period beyond 60 days under current law for policyholders in bushfire-affected areas to pay their home insurance premiums given the challenges facing many in those areas.

FOX Business has reached out to CDI regarding the suspension and notice.

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Zip codes covered by the Palisades fire moratorium include 90049, 90265, 90272, 90290, 90402, 91301, 91302, 91320, 91356, 91361, 91364 and 91436.

Eaton Fire zip codes subject to the moratorium include 91001, 91006, 91007, 91011, 91016, 91020, 91024, 91042, 91101, 91103, 91104, 91106, 91107, 91108, 91206, 91208, 91214, 91706, 91731, 91732, 91775, 91780 and 93563.

Area residents can go to Insurance Department website To see if their zip code is included in the moratorium.

CDI said the agency may provide a supplemental bulletin if additional zip codes are identified within or near the perimeter of a fire subject to a governor-declared state of emergency for Los Angeles and Ventura counties.

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Lara also announced free two-day insurance support workshops open to all those affected by the wildfires that will be held on January 18 and 19 in Santa Monica and January 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process. In addition to providing information about the rebuilding and recovery process.