Around the PIA Western Alliance States – Week of November 18, 2024

California — Commissioner Lara orders insurance protections for Siskiyou and Sierra County residents following fires: Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance companies to preserve residential insurance coverage for more than 11,000 policyholders affected by the Shelly Fire located in Siskiyou County and the Bear Fire located in Sierra County. The Commissioner’s Bulletin shields those living within the perimeters or adjoining ZIP Codes of this fire from insurance non-renewal or cancellation for one year from the date of the Governor’s emergency declarations regardless of whether they suffered a loss.

“My moratorium will ensure that homeowners have the peace of mind knowing their insurance coverage remains intact,” said Commissioner Lara. “Safeguarding wildfire survivors from non-renewals is crucial as we tackle the challenges posed by climate change and work toward lasting reforms to stabilize our state’s insurance market.”

Commissioner Lara’s ability to issue these moratoriums is a result of a California law that he authored in 2018 while serving as a state senator in order to provide temporary relief from insurance non-renewals and cancellations to residents living within or adjacent to a gubernatorial-declared wildfire disaster.

Thus far in 2024, approximately 1,000,000 policies are protected for one year. Today’s order protects over 11,000 policyholders for one year, effective November 1, 2024. Consumers who were non-renewed prior to the emergency declaration date and are unable to obtain insurance or are dissatisfied with their current coverage should contact the Department of Insurance for assistance in shopping for insurance.

Consumers can go to the Department of Insurance website to see if their ZIP Code is included in the moratorium. Consumers should contact the Department of Insurance at 800-927-4357 or via chat or email at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.

Since taking office in 2019, Commissioner Lara has done the following major wildfire-related actions:

    Announced his Sustainable Insurance Strategy, the largest insurance reform in 30 years, which includes multiple executive actions aimed at improving insurance choices and protecting Californians from increasing climate threats while addressing the long-term sustainability of the nation’s largest insurance market.

    Modernized and improved the California FAIR Plan, the insurer of last resort. Commissioner Lara’s plan offers homeowners and condo associations, and business owners expanded coverage in a new “high-value” plan with limits up to $20 million per building, a sound financial formula to protect policyholders in extreme loss scenarios, and improved transparency by requiring increased public reporting on FAIR Plan activity and customer service metrics. Commissioner Lara previously raised residential and commercial coverage limits for the first time in 25 years to keep pace with increased costs.

    Released his catastrophe modeling regulation that will help restore options for all Californians. His proposed regulation will have major benefits for Californians in the form of more reliable rates, greater availability of insurance, stronger oversight, and safer communities.

    Announced “Safer from Wildfires,” a new insurance framework that incorporates wildfire safety measures to help save lives while making homes and businesses more resilient. Safer from Wildfires was created by a first-ever partnership between the Department of Insurance and the emergency and preparedness agencies in the Governor’s Administration, including CAL FIRE, the Governor’s Office of Emergency Services (CalOES), the Governor’s Office of Planning and Research, and the California Public Utilities Commission.

    Finalized new regulations to incorporate Safer from Wildfires in insurance pricing, driving down costs for consumers who have taken actions to protect their communities while increasing transparency about their home’s or business’s “wildfire risk score.”

    Sponsored new insurance protections signed into law by the Governor — despite opposition from insurance companies — that will mean larger payouts for some claims, less red tape from insurance companies, and more help for people under evacuation orders.

Following the Governor’s state of emergency declarations, the Department of Insurance partners with CAL FIRE and CalOES, pursuant to existing statute, to identify wildfire perimeters for mandatory moratorium areas. The Department of Insurance will continue to collaborate with CAL FIRE and CalOES to identify additional wildfire perimeters for any fires where the Governor declares a state of emergency.

California — Commissioner Lara announces action to protect insurance coverage for Mountain Fire survivors: Insurance Commissioner Ricardo Lara announced an impending action to protect communities affected by the Mountain Fire in Ventura County following Governor Newsom’s emergency declaration. Under state law, once the fire’s perimeter is determined, Commissioner Lara will issue a Bulletin identifying areas in the immediate vicinity of the fires that will be protected for one-year from homeowners’ insurance non-renewal or cancellation due to wildfire risk. Thus far in 2024, approximately 1 million policies are protected for one year because of Commissioner Lara’s actions.

“Even if you don’t experience property damage, wildfires take a heavy emotional and financial toll,” said Insurance Commissioner Ricardo Lara, who is leading efforts to tackle California’s insurance crisis through his Sustainable Insurance Strategy. “As we continue to roll out long-term reforms over the next few months, it’s critical that people have the coverage they need in the aftermath of a wildfire. Insurance benefits can help survivors recover quickly and cover added expenses, like the cost of evacuations. Once the fires are contained, we’ll be on the ground, assisting those affected and enforcing California’s strong consumer protections to help them rebuild and recover.”

Commissioner Lara reminds residents in Ventura County who have been ordered to evacuate due to the wildfires that their homeowners’ or renters’ insurance may help with evacuation and relocation costs under Additional Living Expenses coverage, known as ALE. ALE coverage typically includes food and housing costs, furniture rental, relocation and storage, and extra transportation expenses, among other costs.

If you have any questions or need assistance, the California Department of Insurance is here to help. Please call: 1-800-927-4357 or visit www.insurance.ca.gov.

Many homeowners are unaware that they may have coverage under their homeowners’ and renters’ insurance policies to help them with evacuation and recovery expenses.

In 2020, Commissioner Lara sponsored a new law — SB 872 authored by Senator Bill Dodd — that requires insurance companies pay at least two weeks of ALE benefits to evacuees and provide an advance payment for no less than four months of ALE without an itemized inventory form, among other consumer protections. This important consumer protection law removes barriers for disaster survivors to get critical insurance benefits and streamlines wildfire recovery processes for homeowners who suffer from a loss.

Here are some additional tips for consumers:

    Keep all receipts during your evacuation.

    Policy provisions, including deductibles, vary by company, and residents should check with their insurance company or agent as soon as possible to confirm coverage, limits, and any other limitations and documentation requirements. Most renter’s policies also typically include ALE coverage.

    Document the date, time, and names of any insurance company employees you speak to regarding your coverage.

    Consumers should make sure any insurance agent or public adjuster offering their services has a valid license by checking online with the Department of Insurance.

    Download the Department’s Top 10 Tips for Wildfire Claimants (also available in Spanish, Mandarin, and Vietnamese), which includes information about claiming ALE benefits.

    Under existing law, public adjusters cannot solicit business for seven calendar days after a disaster.

    Don’t forget copies of insurance policies, important papers, and a photo or video inventory of your possessions. An inventory can be completed quickly and easily on your smart phone and safely stored in the Cloud.