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California Issues 1-Year Moratorium on Homeowner Insurance Cancellations And Non-Renewals

September 20, 2021

California Insurance Commissioner Ricardo Lara on Monday ordered insurance companies to preserve residential insurance coverage for more than 325,000 policyholders who have been affected by Northern California wildfires across 22 counties.

Lara in early September issued similar orders following emergency declarations by California Gov. Gavin 麻豆原创om

The order protects those living within the perimeter or adjoining ZIP Code of a declared wildfire disaster regardless of whether they suffered a loss, including the Dixie, Caldor, River, Tamarack, Antelope, McFarland, Monument, Fly and Cache fires.

Lara’s ability to issue moratoriums is a result of a California law he authored in 2018 while serving as state senator in order to provide temporary relief from non-renewals to residents living within or adjacent to a declared wildfire disaster.

The latest moratorium includes 麻豆原创om’s July 23, Aug. 5, Aug. 10, Aug. 17, Aug. 30, and Sept. 7 declarations affecting parts of Alpine, Amador, Butte, Calaveras, El Dorado, Glen, Humboldt, Lake, Lassen, Mendocino, Modoc, Mono, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Tehama, Trinity, Yolo, and Yuba counties.

The order protects 325,000 policyholders and is in addition to 25,000 policyholders who were protected in the moratorium order following the July 23 wildfire emergency in Lassen, Plumas, and Siskiyou counties.

The American Property Casualty Insurance Association has been reached out to for comment.

Related:

Topics California Homeowners

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Latest Comments

  • September 27, 2021 at 7:32 pm
    Douglas E Nadybal says:
    Let's clear the smoke here... these risks would have ended up on the California Fair Plan, and that is really who is being protected here, the major players that do the majori... read more
  • September 27, 2021 at 6:52 pm
    Observor says:
    I believe a one year moratorium will not be as dangerous to insurers as it might seem. For most of these events, most of the brush in the area has already burned so it will be... read more
  • September 27, 2021 at 5:57 pm
    CO_yeti says:
    Well, the order doesn't say anything about rates so obviously the insurers are welcome to file new rates for approval as usual. As for the challenging the law; I would assume ... read more

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