California Insurance Regulation Update: Fire Protection Measures for Policyholders

California Insurance Regulation Update: Protection Measures for Fire-Affected Policyholders

In a strategic move to stabilize the insurance market after recent wildfires, California Insurance Commissioner Ricardo Lara has mandated that insurance providers maintain residential property insurance for over 14,800 policyholders impacted by the Pack Fire. This directive follows Governor Newsom's emergency declaration on December 9, ensuring policyholders within affected ZIP Codes are protected from non-renewal or cancellation for one year post-declaration, regardless of individual loss experience.

Commissioner Lara's initiative aligns with his Sustainable Insurance Strategy, securing commitments from leading insurers such as Farmers, Mercury, CSAA, USAA, Pacific Specialty, and California Casualty. They pledged to continue operations in California's wildfire-prone areas. This resilience mechanism stems from a 2018 law, offering temporary relief from insurance non-renewals post-wildfire emergencies.

Since 2019, the residential moratorium framework has protected over 4 million homeowners. Those struggling to secure insurance after a declaration should seek guidance from the California Department of Insurance to explore available coverage options. Looking ahead, the Business Insurance Protection Act (SB 547, effective January 1, 2026) will extend these moratorium provisions to include commercial entities, homeowners’ and condominium associations, affordable housing projects, senior centers, and non-profits.

Policyholders are advised to check the Department of Insurance website to verify if their ZIP Code falls under the current moratorium. Those suspecting insurer non-compliance or having questions related to their claims should contact the Department's helpline. Under Commissioner Lara's direction, the Department of Insurance collaborates with CAL FIRE and CalOES to delineate fire perimeters warranting moratorium designations post-emergency declarations, ensuring fair pricing, adequate coverages, and the equitable treatment of policyholders.

For further assistance and inquiries, consumers should reach out to the Department through its official channels.