California Orders One-Year Insurance Moratorium After Los Angeles Fires

The protection runs for one year from the state of emergency proclaimed by the Governor on Tuesday 7 January and applies whether or not the policyholder suffered a loss. The Department said it may issue a supplemental bulletin if further ZIP Codes fall within or next to fire perimeters in the declared emergency for Los Angeles and Ventura counties.

What insurers are being asked to do

Beyond the mandatory insurance moratorium, the Department issued a notice calling on insurers to pause, for six months, pending non-renewals and cancellations for properties near the wildfires that the bulletin does not already cover. That request extends to non-renewal notices issued up to 90 days before 7 January that would take effect after the fires began. Insurers were also asked to give policyholders in the immediately affected areas more time to pay premiums than the 60-day grace period under existing law.

The Department reminded residents under Los Angeles County evacuation orders that homeowners and renters policies may include additional living expenses cover for food, housing, furniture rental, relocation, storage and extra transport. It separately directed health insurers to submit emergency plans for continued access to medically necessary care, and said its enforcement team is targeting fraud aimed at wildfire survivors.

The wider emergency response

Who is affected

For property and casualty insurers writing homeowners business in Los Angeles County, the bulletin freezes a key underwriting lever in the affected ZIP Codes for a year. Policyholders should check whether their ZIP Code is covered on the Department's website, keep evacuation receipts and record their contacts with insurers. The Department also warned that public adjusters may not solicit business for seven calendar days after a disaster.

Sources

• California Department of Insurance: Commissioner Lara protects insurance coverage for Southern California residents