To protect Southern California households impacted by recent fires, the California insurance commissioner placed a one-year freeze on cancellations and non-renewals.
Commissioner Ricardo Lara stated during a press conference on Friday that ensuring residents impacted by the fires receive the full insurance benefits to which they are entitled is his top priority.
“Last night I issued a bulletin to protect homeowners affected by thePalisadesandEatonfires from non-renewals and cancellations by your insurance companies for one year,” Lara stated.
As multiple flames that have scorched over 36,000 acres continue to devastate the area, Lara imposed the moratorium on Thursday. The zip codes around the Palisades and Eaton fires, as well as other regions, are covered by his moratorium. Even if a homeowner’s home was not damaged or destroyed, it will still be covered.
“I’m also calling on insurancecompanies to suspend any pending non-renewals and cancellationsthat homeowners received before these fires started,” Lara stated. “This means that if you received a non-renewal from your homeowner’s insurance between Oct. 9 and Jan. 7, essentially 90 days, your insurance company should do the right thing and retain you as a valued policyholder.”
Lara’s suspension follows the insurers’ decision to cancel thousands of policyholders in Los Angeles before to the Palisades Fire. According to CNS MoneyWatch, State Farm discontinued over 1,600 policies in the Pacific Palisades region in July.
Lara urged insurers to extend their 60-day grace period for homeowners to pay their insurance payments in order to offer more assistance to those impacted.
Lara stated at the conference that people are having problems with health insurance as well. All California health insurers have received a warning from him instructing them to send emergency plans to his agency.
“These plans must detail how they’re going to ensure that consumers can continue to access essential medical care and obtain their medications in the wake of these disasters,” Lara stated.
Lara plans to present additional legislation to safeguard business owners in his moratorium measure, in addition to protecting homeowners.
Two free workshops on insurance support will be held at his office.On January 18 and 19, the first will take place in Santa Monica, and on January 25 and 26, the second will take place in Pasadena.