Mandatory one-year moratorium prevents homeowners’ insurance cancellations and non-renewals following Governor’s December 9th emergency declaration
SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara today ordered insurance companies to preserve residential property insurance coverage for more than 14,800 policyholders affected by the Pack Fire after Governor Gavin Newsom issued an emergency declaration on December 9. The Commissioner’s Bulletin shields those living within the perimeters or adjoining ZIP Codes of the wildfire from insurance non-renewal or cancellation for one year from the date of the Governor’s emergency declaration regardless of whether they suffered a loss.
Under Commissioner Lara’s Sustainable Insurance Strategy, six insurance companies, including four of the state’s top homeowners carriers – Farmers, Mercury, CSAA, USAA, Pacific Specialty, and California Casualty – have announced they are staying and growing in parts of the state affected by wildfires. The Commissioner’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 insurance non-renewals and cancellations to residents living within or adjacent to a gubernatorial-declared wildfire disaster.
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