California Enacts Year-Long Insurance Moratorium

California Insurance Commissioner Ricardo Lara has enacted a one-year moratorium preventing insurance companies from canceling or refusing to renew policies for approximately 750,000 homeowners affected by recent wildfires in Southern California, including the Airport, Bridge, and Line fires. This decision, initiated following emergency declarations by Governor Gavin Newsom, applies to residents in the impacted areas of Los Angeles, Orange, Riverside, and San Bernardino counties, regardless of whether they suffered a loss. The moratorium aims to alleviate the insurance market's challenges exacerbated by increasing wildfire risks attributed to climate change. Lara emphasized that the temporary measure provides essential support for wildfire survivors as they recover. The Department of Insurance is mobilizing staff to assist affected residents with claims and address potential violations of the moratorium. This action is part of Lara's broader Sustainable Insurance Strategy to stabilize the insurance market in California.