When a homeowner loses everything to an unprecedented firestorm like the catastrophe still active in greater Los Angeles, a canceled insurance policy is the last thing they want to deal with.
To that end, California Insurance Commissioner Ricardo Lara announced Jan. 15 he was expanding previously-issued emergency insurance protections for Southern California homeowners by adding new ZIP Codes to a one-year ban on insurance non-renewals and cancellations. This moratorium covers areas affected by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires.
Lara emphasized the need for insurance coverage for residents in impacted areas. He plans to issue further updates if additional areas are affected. Residents can check their ZIP Codes for moratorium inclusion on the Department of Insurance website. For inquiries about potential violations or claims, they can call 800-927-4357.
Additionally, Lara urged insurance companies to suspend non-renewals or cancellations for properties near wildfires for six months to aid recovery and extend grace periods for premium payments.
Acknowledging the recovery process will be long and arduous, with a variety of reforms needed, Lara also announced the final phase of his Sustainable Insurance Strategy is now enforceable, marking the largest insurance reform in 30 years. The new regulation requires insurance companies to increase coverage in high-risk areas and limits costs to consumers. Companies must provide policies for at least 85 percent of their market share in wildfire-prone regions. This strategy aims to restore insurance availability in the face of climate change and wildfires.
Other measures being taken to assist in the mitigation of damage of the disastrous wildfires have included insurance support workshops to help survivors understand their policies and claims processes; a crackdown on fraudsters targeting wildfire refugees; and notifying survivors of evacuation benefits they may be eligible for.