California Insurance Commissioner Ricardo Lara announced one-year nonrenewal and cancellation moratoriums for home insurance policyholders affected by the Shelly Fire in Siskiyou County and the Bear Fire in Sierra County.
A similar measure is expected soon for Ventura County residents impacted by the Mountain Fire, according to the commissioner’s statement.
Under California law, the insurance commissioner can declare a moratorium in areas following a state of emergency declaration by the governor.
The commissioner coordinates with the California Department of Forestry and Fire Protection and the Governor’s Office of Emergency Services to establish the perimeter. These nonrenewal and cancellation restrictions last for one year from the emergency declaration date.
The moratoriums cover over 11,000 policies in Siskiyou and Sierra counties. The order applies to structures within the defined perimeter and adjacent ZIP codes, even if they didn’t experience a loss.
Governor Gavin Newsom declared an emergency for Siskiyou and Sierra counties on Nov. 1. The coverage includes 14 ZIP codes around the Shelly Fire and six ZIP codes linked to the Bear Fire.
On Nov. 7, Newsom declared an emergency for Ventura County due to the Mountain Fire. A formal moratorium for Ventura County is expected soon, with affected ZIP codes still under review. The California Department of Insurance has not provided additional details on the scope of the upcoming order.
My moratorium will ensure that homeowners have the peace of mind knowing their insurance coverage remains intact
California Insurance Commissioner Ricardo Lara
He says about the importance of protecting wildfire survivors from nonrenewals as the state works to address climate change and stabilize the insurance market.
To date, approximately 1 mn policies have fallen under moratorium orders this year, according to the department.
The current moratorium covers more than 11,000 insurance policies across Siskiyou and Sierra counties, including properties within the designated wildfire perimeters and nearby ZIP codes, regardless of whether they experienced direct fire damage, the department said.
Following Newsom’s emergency declaration for Ventura County on Nov. 7 due to the Mountain Fire, the CDI stated that it is preparing a similar moratorium for affected ZIP codes in the region.
Efforts to gather additional details from the CDI regarding the scope of the Ventura County moratorium were not immediately successful.
