California bans insurance cancellation, non-renewals in LA areas affected by fires

California’s state insurance regulator on Friday announced a one-year moratorium on canceling homeowners insurance policies in affected Southern California counties. devastating forest fires.

The California Department of Insurance (CDI) announced that a mandatory one-year moratorium would prevent insurers from canceling or not renewing policies for homeowners in specific areas affected by the Palisades and Eaton wildfires. Los Angeles area.

The moratorium applies to all home owners, apartment block owners, mobile home owners or residential renters insurance policies in the specified postcodes. It covers cancellations and non-renewals due to bushfire risk.

The fires have destroyed more than 10,000 homes, buildings and other structures as of Friday, and at least 10 people have died in the fires, according to local officials. The Kennett, Hurst and Lydia fires, along with the Palisades and Eaton fires, have burned more than 27,000 acres in total.

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Chimneys stand under the rubble of the Palisades fire in Pacific Ocean, California, on Wednesday. (Agustin Paullier/AFP via Getty Images/Getty Images)

“My heart goes out to my fellow Angelenos. Our priority is to protect Californians during this crisis and help us recover,” California Insurance Commissioner Ricardo Lara said in a statement cancellation or non-renewal policy in areas affected by wildfires, so people don’t have the added stress of finding new insurance during this terrible event.”

“I’m working on all fronts to make sure that bushfire victims get the benefits they’re entitled to, and they get it as soon as possible,” Lara added.

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Smoke plumes from a wildfire in Pacific Palisades, California on Tuesday. (David Swanson/AFP via Getty Images/Getty Images)

CDI also issued a statement calling for insurance companies stop the non-renewal or cancellation of any properties near the bushfires, unless they are already protected by the moratorium. after starting.

The moratorium on non-renewals and cancellations will last six months as communities begin the recovery process. Lara also called on insurers to offer beyond the 60-day grace period under current law. to immediately pay policyholders in bushfire-affected areas their home insurance premiums, given the challenges faced by many in those areas.

FOX Business has reached out to CDI regarding the moratorium and notice.

California wildfires could cost INSURERS $20 billion, the highest in state history.

Khaled Fouad, left, and Mimi Lane check on a family member’s property in Altadena, Calif., which was destroyed by the Eaton Fire on Thursday. (Justin Sullivan/Getty Images/Getty Images)

ZIP codes covered by the Palisades Fire moratorium include 90049, 90265, 90272, 90290, 90402, 91301, 91302, 91320, 91356, 91361, 91364 and 91364.

Eaton Fire zip codes subject to the moratorium include 91001, 91006, 91007, 91011, 91016, 91020, 91024, 91042, 91101, 91103, 91104, 91206, 91208, 91214, 91706, 91731, 91732, 91775, 91780 and 93563.

Area residents can go Department of Insurance website to see if their zip code is included in the moratorium.

CDI said the agency may issue an additional bulletin if additional zip codes are determined to be within or adjacent to a fire perimeter subject to a governor-declared emergency for Los Angeles and Ventura counties.

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Lara also announced free two-day insurance support seminars open to wildfire victims on January 18th and 19th in Santa Monica and January 25th and 26th in Pasadena to help survivors understand their insurance policies and the claims process : as well as provide information about the reconstruction and recovery process.