New safeguards give impacted Californians policy stability for a year.
A one-year nonrenewal and cancellation moratorium has been imposed by California Insurance Commissioner Ricardo Lara for residents in Siskiyou and Sierra counties who have been impacted by recent disasters.
The California Department of Insurance (CDI) said the moratoriums are applicable to policyholders affected by the Bear Fire in Sierra County and the Shelly Fire in Siskiyou County.
The CDI also stated that a similar embargo will be announced shortly for Ventura County households impacted by the Mountain Fire, according to a report by AM Best. In regions where the governor has proclaimed a state of emergency, the insurance commissioner is empowered by California law to impose such moratoriums.
The department collaborates with the California Department of Forestry and Fire Protection and the Governor’s Office of Emergency Services to define the affected areas. Once established, these nonrenewal and cancellation protections extend for one year from the emergency declaration date.
According to the government, the current moratorium applies to nearly 11,000 insurance policies in Siskiyou and Sierra counties, including those for homes located in the designated wildfire perimeters and adjacent ZIP codes, regardless of whether they were directly damaged by fire.
On November 1, Siskiyou and Sierra counties were placed under a state of emergency by Governor Gavin Newsom, which led to the suspension of protections in six ZIP codes for the Bear Fire and 14 ZIP codes for the Shelly Fire.
In response to Newsom’s Nov. 7 emergency declaration for Ventura County because of the Mountain Fire, the CDI said it is getting ready to implement a similar moratorium for the region’s impacted ZIP codes. There was a delay in getting more information from the CDI on the extent of the Ventura County moratorium.
Lara stressed in his statement that by guaranteeing the continuation of their insurance coverage, the moratorium gives residents “peace of mind.”
“As we address the challenges presented by climate change and strive towards long-term reforms to stabilise our state’s insurance market, protecting wildfire survivors from non-renewals is essential,” he stated.
According to CDI data, moratoriums have been applied to about 1 million policies so far in 2024.
The department and Cal Poly Humboldt stated earlier this year that they would collaborate to create a public wildfire catastrophe model, which may be the first wildfire risk model made available to the general public.
What do you think of this tale? Kindly feel free to leave a comment below.
