LASSEN COUNTY, Calif. — Insurance companies are unable to cancel or non-renew policies in areas affected by the Beckwourth Complex Fire and the Lava Fire.
California's Insurance Commissioner Ricardo Lara has issued the one-year moratorium to insurance companies, which prevents them from canceling or non-renewing policies in Siskiyou, Lassen and Plumas counties. This is the first moratorium called by Lara so far this year.
The moratorium includes more than 20,000 people who were already covered under last year's moratorium and extends their protections, according to a press release.
"No one should have to scramble to find fire insurance after suffering the effects of a wildfire. I created this new protection after learning from wildfire survivors how some insurance companies dropped their coverage even as they worked to recover,” Lara said in the press release. “By forbidding insurance companies from issuing non-renewals and cancellations for one year, homeowners have more time to get back on their feet. This is one part of a larger solution for consumers that includes working to increase insurance protections and increasing market competition to help protect consumers."
The insurance commissioner is allowed to issue moratoriums like this due to a 2018 law that provides temporary relief from non-renewals to residents living in or near a declared wildfire disaster. Lara also authored the law while he was serving as a state senator.
The moratorium is able to happen because Gov. Gavin Newsom issued emergency declarations in the Lava and Beckwourth Complex fire areas in July.
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