CA Introduces Insurance Protections For Palisades, Eaton Fire Victims

LOS ANGELES, CA — The state insurance commissioner says he has taken several actions to protect victims of the Eaton and Palisades fires, including prohibiting insurers from canceling or declining to renew policies held by people within the fire zones for a year.

"My top priority is to protect all affected people during this crisis and assist in their insurance recovery," Insurance Commissioner Ricardo Lara said at a Friday morning news conference. "My primary concern at this very moment is to ensure that wildfire survivors receive the insurance benefits to which they are entitled as soon as possible."

Chief among his actions was issuing a moratorium that he says will stop all non-renewals and cancellations of residential insurance policies within the Palisades and Eaton fire areas for one year.

The protection applies to all residential policyholders within the affected areas who suffer less than a total loss — including those who suffer no loss. Those who suffer a total loss have additional protections under the law, according to the state Department of Insurance.

In other words, anyone who lives in the fire areas will be protected from their policies being canceled or not renewed.

He instructed residents to go to the state Department of Insurance website to see if they're eligible for the protection.

Vice President Kamala Harris called out insurance companies at a news conference Thursday.

"Sadly, many insurance companies have canceled insurance for a lot of the families who have been affected and will be affected, which is only going to delay or place an added burden on their ability to recover. I think that is an important point that must be raised," she said.

Lara said he also took additional actions in response to the fires:

• He issued a notice calling on insurance companies to stop any pending non-renewals or cancellations for properties located near wildfires, but not protected by the mandatory moratorium. That includes non-renewals issued up to 90 days prior to Jan. 7 that are or were set to take effect after the start of the fires.
• He called on insurers to extend the 60-day payment grace period required by law for policyholders in the fire areas.
• He called on health insurance companies to submit emergency plans detailing how they will ensure continued access to medically necessary health care services during the State of Emergency declared due to the fires.
• He is sending his enforcement team to safeguard fire victims from fraudsters who are targeting survivors.

SEE ALSO: 10 Dead, 10K Structures, 35K+ Acres: The Wildfires Burning SoCal

Looking ahead, Lara said he plans to ask the governor and state Legislature to support his proposal to provide consumers with "home hardening grants."

"We need to put money in people's hands. This measure is critical to protecting homes and improving long term resilience against wildfire risk," he said.

He also said he plans to introduce legislation that would include businesses in the non-renewal/cancellation moratorium in effect for residential policies.

"Businesses are an important consumer of insurance and the financial backbone of many communities, and they also need this vital protection," he said.

Additionally, Lara said insurance reforms finalized by his department in December "make insurance rates more stable and predictable."

"My sustainable insurance strategy mandates that insurance companies expand and maintain coverage in high-wildfire areas if they are going to use forward-looking catastrophic models and incorporate the reinsurance cost in the rate making," he said.