California Insurance Commissioner Ricardo Lara has barred insurance companies from dropping fire victims’ policies for one year.
“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” Lara said in a statement Thursday. “This law gives millions of Californians breathing room and hits the pause button on insurance non-renewals while people recover.”
This policy comes as several large blazes, including the Palisades and Eaton fires, devastate Los Angeles County. At least 10 people are dead as the blazes destroy more than 36,000 acres as of Friday morning.
Here’s everything you need to know about the new policy:
Can my home insurer drop me if I live near the California fires?
Under Lara’s new policy, insurance companies can’t enact non-renewals or cancelations for residents of the areas scorched by the Palisades and Eaton fires until January 7, 2026.
The rule applies to everyone living in the eligible zip codes, regardless of whether they suffered damage from the fire.
Residents can use the Department of Insurance website to see if they live in an eligible zip code.
“As firefighters continue to battle wildfires across the region, the department may issue a supplemental bulletin if additional ZIP Codes are determined to be within or adjacent to a fire perimeter subject to this declared state of emergency for Los Angeles and Ventura counties,” the Department of Insurance said in a statement.
What can residents do if their home insurer still drops them?
If an eligible resident believes their insurance company is violating the new policy, they can contact the Department of Insurance via phone, chat or email.
What tips should policy owners follow?
The Department of Insurance says home insurance policy owners impacted by the fires should keep receipts for all expenses during evacuation and document all conversations with insurance companies.
Policy owners should also make sure all insurance agents or adjusters they work with have their licenses through the Department of Insurance.
What are insurance companies saying in response?
Top California homeowner insurance providers include State Farm, Farmers Insurance, CSAA Insurance Exchange and Liberty Mutual, according to the Insurance Information Institute.
State Farm said customers are encouraged to file a claim if they’ve been impacted by the fires — but did not directly comment on the new policy when contacted by The Independent.
“Our priority right now is the safety of our customers, agents and employees impacted by the fires and assisting our customers in the midst of this tragedy,” the company’s statement reads.
The Independent has contacted the other insurance agencies for comment on the new policy.
Why is California in a home insurance ‘crisis’?
Many insurance giants, including State Farm, AIG, and Allstate have all stopped writing home insurance policies in California due to the wildfire risks.
Last month, the insurance commissioner called the state of insurance in California a “crisis” amid the exodus of companies and high rates from the insurers that remained.
This has left many Californians without home insurance as the fires devastate the southern part of the state.
