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California moratorium on insurance cancellation in LA fire zones extended by state commissioner

California’s insurance commissioner expanded emergency protections under his recent moratorium for Southern California residents affected by wildfires.

Commissioner Ricardo Lara has added new zip codes to his mandatory one-year moratorium on insurance non-renewals and cancellations. The update now covers residents in the zip codes affected by the Palisades, Eaton, Hurst, Lidia, Sunset and Woodley fires, along with neighboring zip codes.

USA-WEATHER-FIRE
Chris Larson examines the ruins of his business, the Rancho Bar, destroyed by the Eaton Fire in Altadena, California on January 9, 2025. The couple also lost their nearby home in the fire.

ZOE MEYERS/AFP via Getty Images


“I’m using my moratorium powers to prevent insurance companies from canceling or not renewing policies in wildfire-affected areas so people don’t have to deal with the added stress of finding new insurance during this horrific event,” Lara said. “My staff and I are working on all fronts to ensure that wildfire victims receive the benefits they are entitled to, and that they receive them as quickly as possible.”

Last Thursday, Lara issued its first wave of protection after the Palisades and Eaton fires broke out. If a homeowner received a non-renewal notice from their insurance company between October 9 and January 7, they are covered by Lara’s moratorium.

“Your insurance company needs to do the right thing and keep you as a valued policyholder,” Lara said.

Lara also called on insurers to extend the 60-day grace period for homeowners to pay their insurance premiums.

To help residents experiencing issues with their health insurance, Lara sent a message to all health insurers in California directing them to submit contingency plans to his department.

“These plans should detail how they will ensure that consumers can continue to access essential medical care and obtain their medications in the aftermath of these disasters,” Lara said.

Lara’s final element in his Sustainable Insurance Strategy is now also in effect and enforceable. His office said it is “the state’s largest insurance reform in 30 years.”

“The new net cost of reinsurance in ratemaking regulations will require insurance companies – for the first time – to increase coverage in high-risk areas, ensuring more options for Californians while reducing costs passed on to consumers. be limited,” Lara’s office said.

The Los Angeles District Attorney’s Office also announced a new rapid response initiative aimed at combating and prosecuting insurance fraud targeting wildfire survivors.

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