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