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State Invokes Moratorium On Insurance Companies Cancelling Policies In Wildfire Disaster Zones

The December 2017 Thomas Fire burning off of Highway 101 near Faria Beach

The state Thursday invoked a new law which puts a one year moratorium on insurance companies refusing to renew the fire policies of homeowners in wildfire disaster areas. State Insurance Commissioner Ricardo Lara says the temporary ban will help an estimated 800,000 homeowners in Southern and Northern California.

Lara authored the legislation while he was a State Senator, before he became Insurance Commissioner. It became law in January. The moratorium applies to wildfire disaster zones.

But, the Insurance Commission is asking companies to take it a step further. He’s hoping they will voluntarily do a one year statewide moratorium on non-renewals of policies based on wildfire risks.

Lance Orozco has been News Director of KCLU since 2001, providing award-winning coverage of some of the biggest news events in the region, including the Thomas and Woolsey brush fires, the deadly Montecito debris flow, the Borderline Bar and Grill attack, and Ronald Reagan's funeral.