Million Dollar Listing Los Angeles’ star Josh Flagg discusses evacuating Los Angeles amid the flames on The Claman Countdown. The California Department of Insurance (CDI) has announced a one-year moratorium on the cancellation of homeowners insurance policies in areas affected by the devastating wildfires, including the Palisades and Eaton fires in the Los Angeles area.
The moratorium applies to all homeowners, condo unit owners, mobile home homeowners or residential renters insurance policies in specified zip codes, and covers cancellations and non-renewal due to wildfire risk. As of Friday, the fires have destroyed over 10,000 homes, buildings, and other structures, and at least 10 people have been killed.
California Insurance Commissioner Ricardo Lara said that his top priority is protecting Californians during this crisis and helping them recover. He is using his 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 event.
The CDI has also issued a notice for insurance companies to stop pending non-renewals or cancellations for any properties near wildfires that aren’t already protected by the moratorium. This is effective 90 days prior to January 7, when the wildfire outbreak began, but takes effect after the start of the wildfires.
The pause on non-renewal and cancellation of policies will last six months as communities begin the recovery process. Lara has also called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediately affected wildfire areas to pay their home insurance premiums given the challenges facing many in those areas.
