Posted on 01/10/2025 4:28:47 PM PST by SeekAndFind
Los Angeles and surrounding wildfire-hit regions are shielded by a new one-year moratorium on insurance non-renewals, according to California’s insurance commissioner, Ricardo Lara, who announced the year-long freeze on Jan. 9.
“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,” Lara said in a statement.
The one-year moratorium on policy non-renewals and cancellations protects residents in and near the ZIP codes affected by the Palisades and Eaton fires in Los Angeles County, regardless of whether the properties sustained damage, according to Lara.
[ZH: ... and all it took was a bunch of angry rich democrats losing their homes!!!]
The ZIP codes covered by the moratorium are listed in the Commissioner’s Bulletin, a document that formalizes the freeze.
The California Department of Insurance may release a supplemental bulletin if new ZIP codes are identified as being within or near the fire perimeter related to the declared state of emergency for Los Angeles and Ventura counties, according to Lara.
The authority to issue such moratoriums was granted to the insurance commissioner by Senate Bill 824, introduced by Lara during his tenure as a state senator and signed into law in 2018. The law prohibits insurers from canceling or refusing to renew residential property policies in wildfire-affected areas when a state of emergency is declared. It also provides policyholders who lose their homes to fire with protection for up to 24 months.
The freeze is effective starting from Jan. 7, the day that Gov. Gavin Newsom declared an emergency to support the communities impacted by the fires. Newsom’s declaration noted that much of Southern California faced life-threatening winds and extreme fire risk.
Besides the moratorium, Lara announced a two-day workshop on Jan. 18–19 for residents affected by the fires to help them understand their insurance policies and provide them with additional resources.
At least 10 people have been killed in the wildfires to date, Los Angeles County officials have confirmed. Around 180,000 people remain under mandatory evacuation orders as firefighters work to contain the infernos.
Nearly 36,000 acres had been burned and over 10,000 structures had been destroyed by the fires in the Los Angeles area, according to Cal Fire on Friday morning. Forecasters say the high-fire weather risk will continue into Friday.
The potential economic loss and damage from the fires is estimated to be between $135 billion and $150 billion, according to AccuWeather data released on Jan. 9. Previously, the company estimated damages to be between $52 billion and $57 billion. The preliminary damage estimate accounts for both insured and uninsured losses, including property damage, wage impacts, infrastructure destruction, supply chain disruptions, and other related effects.
“These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history,” AccuWeather Chief Meteorologist Jonathan Porter said in a statement. “Hurricane-force winds sent flames ripping through neighborhoods filled with multi-million-dollar homes. The devastation left behind is heartbreaking and the economic toll is staggering.”
The insurance industry is bracing for significant losses. Early projections from Morningstar DBRS estimate the catastrophe could result in $8 billion in insured losses.
“Property insurance affordability is likely to remain a challenge in the state going forward, with many property owners opting to remain uninsured or under-insured because of the high costs,” Patrick Douville, vice president of global insurance and pension ratings at Morningstar DBRS, said in a Jan. 9 note.
Bloomberg Intelligence analysts project that insured losses could reach $10 billion, citing the high value of homes at risk.
People are fleeing California because of high taxes (among other things). Insurance companies may soon be fleeing California as well.
What “moratorium powers”?
Beach commission ain’t gonna let houses on the ocean side. The trailer park on PCH now gone. Yeah, not likely. Permits, EPA and Cali regs? If you aint a multi millionaire, you’re done.
Directive 10-289
Stupid Marxists.
This is what happens when you do business with those crooks and thieves in Cauliphonya.
Power makes it so easy.
Imagine being mandated to ensure repeat convicted, drunk drivers for auto insurance
Insure
Stupid Siri
Trailer park on PCS? Where? Did one burn?
Insurance companies are already in process of fleeing California. Ricardo Lara is one of the reasons for the current insurance crisis.
My sister lives in the colony Malibu.
You can be a billionaire and it will still take years to get building permits through the coastal commission.
Get ready for home and auto insurance rates to go up. Even for those of us in low-risk areas. My house insurance has almost doubled since Biden took office. I expected to see it go up at least 50% due to Helene and now with the California fires I bet it will double (again). We are going to feel their pain!
If CA had let insurance companies raise their rates, they would have more insurance companies still in the state. There would also have been less insurance policy cancellations over the past year. California regulations cost all of us money.
Seriously, this is straight out of Atlas Shrugged.
Yup. It was right across from a huge parking lot beach side. One of the faux reporters was right next to it. Before and after. They’re all gone now. You know someone is already eyeing the land.
You can use Directive 10-289 or “the moratorium on brains.”
Wouldn’t it be simpler if California just ordered the insurance companies to give each resident of the state $5,000,000?
That would sure cut down down on all the paperwork.
📝
EXACTLY
THOSE COMPANIES ARE ALREADY CANCELLING POLICIES. I WOULD ALSO. NO ONE IS MINDING THE STORE REGARDING FIRE PREVENTION or SUPPRESSION.
AND-—IF IT ALL IS CALLED AN “ACT OF GOD”-—THERE IS NO PAYOUT AT ALL.
California: Go Fund Me
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