California Imposes Moratorium on Home Insurance Cancellations

California's Insurance Commissioner has enacted a one-year moratorium on the cancellation or non-renewal of homeowners insurance policies for areas affected by the Palisades and Eaton wildfires. This decision, effective from January 7, aims to protect residents from losing coverage during a time of crisis, as the wildfires have destroyed over 10,000 structures and left at least 10 people dead. The moratorium applies to all policies in force and covers homeowners even if their properties were not directly damaged. Commissioner Ricardo Lara emphasized the importance of providing stability for affected residents and has urged insurers to extend grace periods for premium payments. In addition, he called for a halt on any pending non-renewals initiated in the 90 days prior to the wildfires. The economic impact of the wildfires is projected to reach between $135 billion and $150 billion, with insurers facing claims potentially exceeding $20 billion.