Thousands of Los Angeles residents impacted by the Hughes Fire are receiving an insurance boost, thanks to California Insurance Commissioner Ricardo Lara, who has extended emergency protections to include homeowners near the blaze.
This move provides crucial relief in the wake of devastating wildfires that have ravaged properties across the state. Newsweek reached out to the California Department of Insurance for comment.
A press release issued on Tuesday by the California Department of Insurance (CDI) announced Lara’s expansion of a mandatory one-year moratorium. This prevents insurance companies from canceling or declining to renew homeowners’ policies in wildfire-affected areas.
The recent order now encompasses residents affected by the Hughes Fire in Los Angeles County. This builds upon existing protections for those impacted by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley Fires in Southern California.
California is grappling with increasing challenges in its insurance market due to the rising frequency and intensity of wildfires. Many insurers have withdrawn coverage or significantly increased premiums in high-risk areas. Hundreds of Los Angeles homeowners in the Pacific Palisades had their policies canceled just months before recent fires.
The recent fires destroyed 16,255 residential and commercial buildings, according to analysis by the Fire Safety Research Institute.
In the press release, California Insurance Commissioner Ricardo Lara stated, “Homeowners affected by the Hughes Fire and other devastating wildfires should not have to worry about losing their insurance coverage during this crisis.”
Lara continued, “My moratorium powers ensure that insurers cannot cancel or refuse to renew policies for those in wildfire-impacted areas, providing much-needed stability and relief during this difficult time. My team and I are working tirelessly to protect consumers and help them receive the benefits they are entitled to as quickly as possible.”
Los Angeles residents can verify their ZIP code’s inclusion in the moratorium on the Department of Insurance website. According to CBS News Los Angeles, the first phase of hazardous debris removal is complete.
