Commissioner Lara’s call to action leads State Farm to rescind non-renewals for wildfire survivors
After Insurance Commissioner Ricardo Lara used his moratorium power to halt non-renewals in Southern California wildfire areas and called on insurance companies to rescind non-renewals, State Farm has responded to his call. The Los Angeles Times reported that the state’s largest homeowner’s insurance company will offer renewals to all Los Angeles County homeowners, rental dwelling policyholders, residential community associations, or business owners policies who are pending non-renewal or cancellation.
Commissioner’s POV: “All eyes are on insurance companies right now, including mine. I asked insurance companies to do the right thing and stand by their customers. State Farm is answering my call and setting the tone for other insurance companies to follow. As I told the Los Angeles Times we are going to keep working to make sure everyone's claims are paid fairly, quickly and completely -- while protecting people from non-renewals under my moratorium orders.”
Background: Commissioner Lara issued a moratorium on insurance companies non-renewing wildfire survivors. Today he expanded the moratoriums adding new wildfires. The amended Commissioner’s Bulletin shields those within the perimeters or adjoining ZIP Codes of the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires in Los Angeles County for one year from the Governor’s January 7 emergency declaration regardless of whether they suffered a loss.
To provide additional stability for communities near the wildfires, Commissioner Lara also issued a Notice calling on all insurance companies to stop any pending non-renewals or cancellations for any properties located near wildfires, if they are not already protected by the mandatory moratorium. This includes non-renewals issued up to 90 days prior to January 7, but taking effect after the start of the wildfires. State Farm is the first company heeding his call to action.
In addition, Commissioner Lara called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediate affected wildfire areas, to pay their home insurance premiums given the challenges that many policyholders in these areas are having right now.
What’s next: Commissioner Lara announced free two-day insurance support workshops on January 18 and 19 in Santa Monica and January 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery. These workshops are open to all those impacted by the recent wildfires. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert. Visit www.insurance.ca.gov.
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.
