California’s state insurance regulator on Friday announced a one-year moratorium on canceling homeowner’s insurance policies in areas of Southern California that have been hit by the crisis. this week devastating forest fires.
The California Department of Insurance (CDI) announced that the mandatory one-year moratorium will prevent insurers from canceling or not renewing policies for homeowners in specific areas affected by the Palisades and Eaton wildfires in the Los Angeles area.
The moratorium applies to all homeowners, condominium unit owners, mobile home owners or residential renters insurance policies in specified zip codes. Covers cancellations and non-renewal due to bushfire risk.
As of Friday, the fires have destroyed more than 10,000 homes, buildings and other structures, according to local authorities. At least 10 people have died in the fires. The Kenneth, Hurst and Lidia fires, along with the Palisades and Eaton fires, have collectively burned more than 27,000 acres in the area.
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“My heart goes out to my fellow Angelenos. Our top priority is protecting Californians during this crisis and helping us recover,” California Insurance Commissioner Ricardo Lara said in a statement. “I am using my moratorium powers to prevent insurance companies from doing this cancellation or non-renewal policies in bushfire affected areas so people don’t face the added stress of finding new insurance during this horrific event.”
“I’m working on all fronts to make sure bushfire victims get the benefits they’re entitled to and get them as soon as possible,” Lara added.
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CDI also issued a notice requesting this insurance companies leave pending non-renewals or cancellations for any properties near wildfires if they are not already protected by the moratorium. The notice applies to non-renewals or cancellations that were issued up to 90 days before Jan. 7, when the wildfire outbreak began, but are effective after the start of forest fires.
The pause on policy non-renewals and cancellations would last six months as communities begin the recovery process. Lara also asked insurers to offer beyond the 60-day grace period under current law for policyholders in wildfire-affected areas to immediately pay their home insurance premiums given the challenges faced by ‘face many in these areas.
FOX Business reached out to CDI about the moratorium and notice.
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Zip codes covered by the Palisades fire moratorium include 90049, 90265, 90272, 90290, 90402, 91301, 91302, 91320, 91356, 91361, 91364 and 91.
Eaton Fire zip codes subject to the moratorium include 91001, 91006, 91007, 91011, 91016, 91020, 91024, 91042, 91101, 91103, 91104, 91107, 91106 91206, 91208, 91214, 91706, 91731, 91732, 91775, 91780 and 93563.
Residents of the area can go to the Website of the Department of Insurance to see if your zip code is included in the moratorium.
The CDI said the agency may send an additional bulletin if additional ZIP codes are determined to be in or adjacent to a fire perimeter subject to the governor’s declared state of emergency for Los Angeles County and ventura
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Lara also announced free two-day insurance support workshops open to all those affected by the wildfires to be held on January 18-19 in Santa Monica and January 25-26 in Pasadena to help survivors understand your insurance policies and the claims process. as well as providing information on the reconstruction and recovery process.