Cases

Mandatory Moratorium On Non-Renewals After Recent Wildfire Activity

Recently, California’s insurance commissioner issued a bulletin imposing a moratorium on insurers not renewing policies issued to those homeowners in areas of Los Angeles, Ventura, Riverside, and Sonoma counties have been affected by wildfires. The commissioner makes this request pursuant to the recent Wildfire Safety and Recovery Act, which was enacted in January.

In August, the California Department of Insurance issued a report that showed an increasing trend of nonrenewals from 2017 to 2018 for those homeowners in wildfire-risk areas. The commissioner is calling upon insurers in hopes that they will “give breathing room to communities and homeowners while they adapt and mitigate risks…” It is anticipated that more zip codes will be added to the moratorium as data becomes available.