Commissioner Lara Orders Insurance Protections For 750,000 in Southern California Following Major Wildfire Emergencies
Commissioner Lara Orders Insurance Protections For 750,000 in Southern California Following Major Wildfire Emergencies
Mandatory one-year moratorium prevents homeowners insurance cancellations and non-renewals in areas around Airport, Bridge and Line fires.
September 19, 2024 - Today Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance companies to preserve residential insurance coverage for approximately 750,000 policyholders affected by the Airport, Bridge, and Line fires located in the counties of Orange, Riverside, Los Angeles, and San Bernardino. The Commissioner’s Bulletin shields those living within the perimeters or adjoining ZIP Codes of these fires from insurance non-renewal or cancellation for one year from the date of the Governor’s emergency declarations regardless of whether they suffered a loss.
The Department of Insurance is deploying staff to wildfire disaster areas to assist survivors in filing claims and protect communities from potential insurance fraud and abuse. Consumer services experts are available in-person to answer questions at Local Assistance Centers. Visit the Department’s website to find information about Local Assistance Centers near you and view the Top 10 Tips for wildfire claimants to avoid becoming a victim of a scam, or call 800-927-4357 with any insurance-related question.
Commissioner Lara’s ability to issue these moratoriums is a result of a California law that he authored in 2018 while serving as a state senator in order to provide temporary relief from insurance non-renewals and cancellations to residents living within or adjacent to a gubernatorial-declared wildfire disaster.
“By law, I am able to place moratoriums on insurance company homeowners cancellations and non-renewals in areas stricken by wildfires. This creates much-needed breathing room for homeowners while my Sustainable Insurance Strategy takes effect,” said Insurance Commissioner Ricardo Lara, who has protected nearly 5 million people under the law since 2019. “Wildfire survivors should not have to worry about insurance while they are recovering. This temporary protection also will help calm fears and stabilize the market while the reforms we are making this year are implemented.”
Since 2019, Commissioner Lara’s actions have protected nearly 5 million homeowners. Today’s order protects approximately 750,000 policyholders in 91 ZIP Codes for one year. That includes approximately 170,000 policies for the Line Fire in San Bernardino County, effective September 7, 2024, and 580,000 policies for the Airport Fire in Orange and Riverside counties and the Bridge Fire in Los Angeles and Riverside counties, effective September 11, 2024. Consumers who were non-renewed prior to the emergency declaration date and are unable to obtain insurance or are dissatisfied with their current coverage should contact the Department of Insurance for assistance in shopping for insurance. Earlier this year, the Department protected 185,000 residents of Central and Northern California affected by multiple fires across four counties – for a total of nearly 1 million policies under moratorium in 2024.
Following the Governor’s state of emergency declarations, the Department of Insurance partners with CAL FIRE and CalOES, pursuant to existing statute, to identify wildfire perimeters for mandatory moratorium areas. The Department of Insurance will continue to collaborate with CAL FIRE and CalOES to identify additional wildfire perimeters for any fires where the governor declares a state of emergency.
Consumers can go to the Department of Insurance website to see if their ZIP Code is included in a moratorium. Consumers should contact the Department of Insurance at 800-927-4357 or via chat or email at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
