Bulletin from California Insurance Commissioner Ricardo Lara regarding mandatory Moratorium on Cancellations and Non-Renewals of Policies of Residential Property Insurance After the Declaration of a State of Emergency: Insurance commissioner issues a mandatory one-year moratorium on insurance non-renewals and cancellations.
- No Non-Renewal or Cancellation Within Fire Perimeter (Moratoriums) For One Year: Insurance companies are prohibited from cancelling or refuse to renew residential property insurance policies for a property 2 located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency
- No Non-Renewals After a Declared Disaster: When there is a total loss to a residential property as a result of a declared disaster, the insurance company is required to offer a renewal of the policy for at least the next two annual renewal periods
- 60-Day Grace Period for Insurance Premium Payments: In the event of a state of emergency, insurance companies must offer a 60-day grace period for payment of premiums for residential property insurance policies for property located within the affected area.
- Pending non-renewals: In addition to the above, I’m calling on all property insurance companies to forego any pending non-renewals and cancellations that are due to take effect on residential properties located within and around these wildfires. This is not something the commissioner has authority to do however it would urge insurance companies to pause any cancellations for up to 90 days before January 7th. We will wait to see if any insurance companies issue a statement on this.
*Note that 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.
Link to full press release from CA Department of Insurance, January 9, 2025: https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/releasea005-2025.cfm
