California has enacted a one-year ban on insurance cancellations and non-renewals for homeowners in Los Angeles areas affected by the recent Palisades and Eaton fires. This decision, announced by Insurance Commissioner Ricardo Lara, aims to provide relief to residents during the recovery process. The moratorium, effective from January 7, applies to all residential property policies in the impacted neighborhoods and adjoining ZIP codes, regardless of whether homeowners suffered direct losses.

“My heart goes out to my fellow Angelenos. Our top priority is protecting Californians during this crisis and helping us recover,” said Commissioner Lara. “I am using my moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don’t face the added stress of finding new insurance during this horrific event. I am working on all fronts to make sure wildfire victims get the benefits they are entitled to, and they get it as soon as possible.”

The California Department of Insurance may extend the moratorium to other areas if necessary. Additionally, Commissioner Lara has called on insurers to halt any pending non-renewals or cancellations for properties near the wildfires and to extend the grace period for premium payments beyond the standard 60 days.

To assist affected residents, the Department of Insurance will host free workshops in Santa Monica and Pasadena later this month. These sessions will help survivors understand their insurance policies and the claims process. For more information, residents can visit the Department of Insurance website or call 800-927-4357.

The fires have caused significant damage, with over 29,000 acres burned and at least 11 fatalities reported. Economic losses are estimated to be between $135 billion and $150 billion, with insurers potentially facing a bill exceeding $20 billion.

Madison in the Morning