Insurance commissioner prohibits policy cancellations for fire victims

California Insurance Commissioner Ricardo Lara has barred insurance companies from canceling residential coverage of some 750,000 policyholders affected by the Airport, Bridge and Line fires.
The order issued Thursday protects residents within the fire zones or adjoining ZIP Codes from insurance non-renewals or cancellations for one year from the date of emergency declarations Gov. Gavin Newsom issued this month.
“Wildfire survivors should not have to worry about insurance while they are recovering,” Lara said in a statement.
The fires in Los Angeles, Orange, San Bernardino and Riverside counties, which began this month and have yet to be fully contained, have burned more than 100,000 acres and destroyed more than 100 homes.
In August, Lara issued a similar bulletin shielding more than 185,000 policyholders affected by the Park, Borel and Gold Complex fires in Kern County and Northern California. The bulletins protect homeowners whether they have suffered a loss.
Consumers can go to the Department of Insurance website to see if their ZIP Code is included in a moratorium.
The department is deploying staff to the areas to help survivors file claims. Consumers should contact the department at 800-927-4357 or via chat or email at insurance.ca.gov if they believe their insurer is violating the law.
Lara authored the 2018 legislation that established authority for the moratoriums.
Lara’s action comes as he seeks to enact his Sustainable Insurance Strategy, a package of executive actions intended to stabilize the California insurance market amid the growing number of wildfires, which have been attributed to climate change.
The fires have caused insurers to withdraw from the market, forcing many homeowners in communities with high wildfire risks into the state Fair Plan, an insurer of last resort that offers policies with fewer benefits than full insurance.
Lara’s reforms have been controversial, with a leading consumer group saying they include giveaways to the insurance industry, which he disputes.