California prohibits cancellation and non-renewal of insurance in areas of LA affected by wildfires
‘Million Dollar Listing Los Angeles’ star Josh Flagg discusses evacuating Los Angeles amid flames on ‘The Claman Countdown.’
California’s state insurance regulator on Friday announced a one-year moratorium on canceling homeowner’s insurance policies in areas of Southern California affected by this week’s devastating forest fires.
The California Department of Insurance (CDI) has announced that a mandatory one-year moratorium will prevent insurers from canceling or not renewing homeowners policies in certain areas affected by the Palisades and Eaton wildfires in Los Angeles area.
The moratorium applies to all homeowners, condo owners, mobile home owners, or renters insurance policies in certain zip codes. Covers cancellations and non-renewals due to fire hazards.
By Friday, the fires had destroyed more than 10,000 homes, buildings and other structures, according to local officials. At least 10 people died in the fires. The Kenneth, Hurst and Lidia fires, along with the Palisades and Eaton fires, have combined to burn more than 27,000 acres in the area.
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Chimneys stand among the rubble after the Palisades Fire broke out in Pacific Palisades, California on Wednesday. (Agustin Paullier/AFP via Getty Images/Getty Images)
“My heart goes out to my fellow Angelenos. Our top priority is to protect Californians during this crisis and help us recover,” California Insurance Commissioner Ricardo Lara said in a statement. “I am using my moratorium powers to prevent insurance companies from cancellation or non-renewal policies in areas affected by the fires, so people don’t face the added stress of looking for new insurance during this horrific event.”
“I am working on all fronts to ensure that the victims of the fire receive the benefits they are entitled to, and as soon as possible,” added Lara.
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Plumes of smoke are seen as a wildfire burns in Pacific Palisades, California on Tuesday. (David Swanson/AFP via Getty Images/Getty Images)
The CDI has also issued a notification inviting the insurance companies to stop pending non-renewals or cancellations for all properties near wildfires if not already protected by a moratorium. The notice applies to non-renewals or cancellations that were issued up to 90 days before Jan. 7, when the fire began, but take effect after the fire began.
The hiatus on policy non-renewals and cancellations will last six months while communities begin the recovery process. Lara also called on insurers to offer home insurance premiums to policyholders in areas immediately affected by the bushfire after the 60-day grace period under existing law given the challenges many are facing in those areas.
FOX Business contacted CDI regarding the moratorium and notification.
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Khaled Fouad, left, and Mimi Laine inspect a family member’s property in Altadena, Calif., that was destroyed by the Eaton fire Thursday. (Justin Sullivan/Getty Images/Getty Images)
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 Department of Insurance website to see if their zip code is included in the moratorium.
CDI said the agency may file an additional bulletin if additional zip codes within or near the fire area are determined to be subject to the governor’s state of emergency for Los Angeles and Ventura counties.
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Lara also announced free two-day insurance support workshops open to anyone affected by the wildfires to be held Jan. 18-19 in Santa Monica and Jan. 25-26 in Pasadena to help survivors understand their insurance policies and the claims process , as well as provide information on the rebuilding and recovery process.
