On February 25, 2025, California Insurance Commissioner Ricardo Lara issued a bulletin expanding the previously announced one-year moratorium preventing homeowners insurance cancellations and non-renewals to those affected by the Hughes Fire. Previously, the moratorium only protected residents impacted by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley Fires.
The moratorium expires in January 2027, and shield those within the perimeters or adjoining ZIP codes of the applicable fires, regardless of whether they suffered direct property loss. There is a link on the Department of Insurance website that residents can access to determine if their ZIP code is included in the moratorium. Consumers can contact the Department of Insurance if they believe their insurance company canceled or non-renewed a policy in violation of the moratorium.
Commissioner Lara has indicated that homeowners should not have to be concerned about losing coverage in the midst of the wildfires crisis. “My moratorium powers ensure that insurers cannot cancel or refuse to renew policies for those in wildfire-impacted areas, providing much-needed stability and relief during this difficult time. My team and I are working tirelessly to protect consumers and help them receive the benefits they are entitled to as quickly as possible,” said Commissioner Lara.
On a related matter, earlier this month the Insurance Commissioner issued a formal Notice to all residential property insurance companies encouraging them to continue providing Additional Living Expense (ALE) coverage to wildfire survivors whose homes are uninhabitable as a result of the fires. ALE, also known as Loss of Use or Fair Rental Value coverage, is intended to help policyholders cover certain additional costs when a home becomes uninhabitable due to a covered event. Subject to the terms of the specific policy, this can include temporary housing, food, relocation expenses, extra transportation costs, and utility installation fees.
