California Insurance Commissioner Protects Wildfire Victims
California’s Insurance Commissioner, Ricardo Lara, is stepping up to help residents affected by recent wildfires. A new Notice issued on January 9, 2025, puts in place several measures designed to provide relief and stability to property owners facing insurance challenges.
This action comes in response to wildfires that caused disruptions and financial strain for many Californians.
Key Measures in Place
The core of Commissioner Lara’s actions relates to providing residents impacted by the fires with more time
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Moratorium on Non-Renewals and Cancellations: The commissioner has issued a minimum six-month pause on any pending property insurance cancellations and non-renewals that were issued within 90 days prior to January 7, 2025, and would become effective after January 7, 2025. This is to provide stability to communities dealing with the aftermath.
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Grace Period for Premium Payments: Insurers are reminded of their obligation to provide a 60-day grace period for premium payments on residential properties in the affected areas after a state of emergency. This can provide financial relief to homeowners dealing with evacuation and temporary housing. Commissioner Lara is encouraging companies to extend this where possible and to work with policyholders facing difficulties.
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Moratorium Periods: Existing California law offers two more moratorium periods, that give affected areas one year, and those who loss their homes two years of protections:
- Fire Perimeter: a one-year moratorium on cancellations and non-renewals for properties within or adjacent to the fire perimeter.
- Total Loss: an offer to renew policies for at least two years for those who experienced a total loss of their residence due to a declared disaster.
These measures aim to prevent homeowners in wildfire-affected areas from being penalized due to their location or circumstances.
Policyholder Actions:
Policyholders who received notices of non-renewals in the past year should review the dates and the January 9th Notice or contact their insurance broker or attorney for assistance.
Commissioner Lara’s actions demonstrate a commitment to helping California residents navigate the challenges.
