Insurance cancellations banned for local wildfires – Orange County Register

California regulators have imposed a one-year moratorium on canceling or refusing to renew insurance policies for residents living in or near areas burned in the Airport, Bridge and Line fires this month.

The Department of Insurance’s bulletin, issued Thursday, will affect homeowners living in 91 ZIP codes in Los Angeles, Orange, Riverside and San Bernardino counties.

The ban will remain in effect until September 7, 2025, for residents of San Bernardino County affected by the Line Fire and until September 11, 2025, for residents of the four counties affected by the Airport and Bridge Fires.

The three fires have collectively burned nearly 118,000 acres since September 5.

See also: Anxious homeowners struggle to keep insurance

A 2018 law written by state Insurance Commissioner Ricardo Lara, while he was still a state senator, created a one-year moratorium for residents in or near wildfires that prompted a state emergency declaration.

“Losing your insurance should be the last thing on your mind after surviving a devastating wildfire,” Lara said in the newsletter. “This law gives millions of Californians breathing room and puts a pause on insurance non-renewals while people recover.”

The law has been invoked 28 times since its adoption, including five times last summer.

The news comes as homeowners struggle to maintain their insurance coverage.

The number of California homeowners insurance policies canceled or not renewed by insurance companies increased 46% between 2018 and 2021, the most recent year available, according to state figures. The number of policyholders forced to use the state’s insurer of last resort, the costly FAIR Plan, has increased 164% since 2019.

See also: Homeowners Join Consumer Advocates to Attack California Insurance Reforms

The moratorium only applies to residential policyholders, prohibiting all insurance companies from ending coverage due to wildfire risk, according to the Ministry of Insurance bulletin. It applies to homeowners, condominiums and manufactured homes as well as renters.

Residents who receive a cancellation or non-renewal notice should contact their insurance company to request reinstatement of their policy, the bulletin states. If the insurance company refuses, they can contact the Department of Insurance and file a “request for assistance.”

— To see the zip codes of line, airport and bridge fires affected by the moratorium, CLICK HERE