California Insurance Commissioner Ricardo Lara has implemented one-year nonrenewal and cancellation moratoriums for homeowners affected by recent wildfires in Siskiyou and Sierra counties.
The moratoriums apply to policyholders impacted by the Shelly Fire in Siskiyou County and the Bear Fire in Sierra County, according to a statement from the California Department of Insurance (CDI).
According to a report from AM Best, the CDI also indicated that a similar moratorium will soon be announced for residents affected by the Mountain Fire in Ventura County. Under California law, the insurance commissioner is authorized to issue such moratoriums in areas where a state of emergency has been declared by the governor.
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.
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.
Gov. Gavin Newsom declared a state of emergency for Siskiyou and Sierra counties on Nov. 1, resulting in moratorium protections across 14 ZIP codes for the Shelly Fire and six ZIP codes for the Bear Fire.
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.
In his statement, Lara emphasized that the moratorium provides residents “peace of mind” by ensuring the continuity of their insurance coverage.
“Safeguarding wildfire survivors from non-renewals is crucial as we tackle the challenges posed by climate change and work toward lasting reforms to stabilize our state’s insurance market,” he said.
So far in 2024, approximately 1 million policies have been subject to moratoriums, according to CDI data.
Earlier this year, the department announced a partnership with Cal Poly Humboldt to develop a public wildfire catastrophe model, which could become the first publicly available wildfire risk model.
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