As the Line Fire continues to ravage over 38,000 acres of our mountain communities, residents are under evacuation orders and warnings, with rising concerns over homeowner insurance policies. With the increasing threat of natural disasters and escalating insurance costs, it’s essential for California homeowners to understand Senate Bill 824 and how it protects them in times of crisis.
California’s Insurance Commissioner, Ricardo Lara, played a key role in authoring Senate Bill 824 (2018) while serving as a state senator. This critical consumer protection law mandates a one-year moratorium on insurance companies canceling or non-renewing residential policies in areas affected by wildfires, following the governor’s declaration of a state of emergency.
“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” said Commissioner Lara. “This law gives millions of Californians breathing room and hits the pause button on insurance non-renewals while people recover.”
This law is a lifeline for homeowners in fire-prone areas, ensuring that they won’t face the additional hardship of losing their insurance coverage when they need it the most. Once the governor declares a state of emergency due to a wildfire, the Department of Insurance collaborates with Cal Fire and the governor’s Office of Emergency Services to identify the fire perimeter and adjacent ZIP codes affected by the disaster. Within these designated areas, insurance companies are prohibited from issuing cancellations or non-renewals for one year from the date of the emergency declaration.
The protection applies to all homeowners within the affected zones, regardless of whether they suffered damage to their property. Even those who experienced no loss at all are shielded from losing their insurance during this period. For those who experienced a total loss, additional protections are provided by law.
Since its passage, Commissioner Lara has implemented Senate Bill 824 during major wildfire seasons from 2019 to July 2024, protecting thousands of homeowners from losing their policies. As we now live in or near a wildfire-affected area, our affected ZIP codes will no doubt be covered under the moratorium. Should you receive a notice of cancellation or non-renewal due to wildfire risk, and your ZIP code is protected, you can request a reinstatement from your insurance company. If your insurance provider refuses, the California Department of Insurance can assist with filing a Request for Assistance.
As of now, the Department’s website has not yet been updated to include the current wildfires across Southern California, as the fires are still active. However, once the situation is under control, it is a good idea to periodically check the site for updated information. Navigate to www.insurance.ca.gov -> Consumers -> Dealing with Catastrophes -> Mandatory One Year Moratorium on Non-Renewals to stay informed.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social – Instagram: @theresagrantrealtor|YouTube: @theresagrantrealtor. Theresa is a Broker Associate with Coldwell Banker Sky Ridge Realty.
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