California Construction News staff writer
Tens of thousands of California residents either permanently relocate or rebuild their homes after the most destructive fires in Los Angeles’ history.
Insurance companies may cover thousands of dollars in temporary housing and living expenses — unless homeowners are underinsured or not covered.
For example, if someone’s insurance covers US$100,000 for a property, the insurance company might cover another $20,000 — or 20 per cent — in additional living expenses, Collins said.
Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance non-renewals and cancellations on Jan. 9, a move he says will protect those within the perimeters or adjoining ZIP Codes of the Palisades and Eaton fires in Los Angeles County for one year from the Governor’s January 7 emergency declaration regardless of whether they suffered a loss.
As firefighters continue to battle wildfires across the region, the Department may issue a supplemental bulletin if additional ZIP Codes are determined to be within or adjacent to a fire perimeter subject to this declared state of emergency for Los Angeles and Ventura counties.
“My heart goes out to my fellow Angelenos. Our top priority is protecting Californians during this crisis and helping us recover,” Lara said. “I am using my moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don’t face the added stress of finding new insurance during this horrific event. I am working on all fronts to make sure wildfire victims get the benefits they are entitled to, and they get it as soon as possible.”
To provide additional stability for communities near the wildfires, Commissioner Lara also issued a Notice calling on all insurance companies to stop any pending non-renewals or cancellations for any properties located near wildfires, if they are not already protected by the mandatory moratorium. This includes non-renewals issued up to 90 days prior to January 7, but taking effect after the start of the wildfires.
A pause on non-renewing and cancelling policies would last six months as impacted communities begin the recovery process. In addition, Commissioner Lara called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediate affected wildfire areas, to pay their home insurance premiums given the challenges that many policyholders in these areas are having right now.
Visit the Department of Insurance website to see if their ZIP Code is included in the moratorium. Consumers should contact the Department of Insurance at 800-927-4357 or via chat or email at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.
Commissioner Lara also announced a free two-day insurance support workshops on Jan. 18 and 19 in Santa Monica and Jan. 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery.
The workshop is open to all those impacted by the recent wildfires. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert.