California Insurance Commissioner Ricardo Lara has issued a Notice that instructs all insurance companies to stop enforcing policy or statutory deadlines on policyholders for claims or coverage until 90 days after California's statewide "state of emergency" or any other "state of emergency" that is related to COVID-19 has ended.

This policy has been issued in order to protect policyholders from losing, limiting, or waiving policy benefits because of the current national state of emergency. The notice will also help wildfire claimants, some of whom are being required to continue to repair and rebuild homes during the COVID-19 crisis if they wish to obtain the full replacement cost and additional living expense benefits owed to them. Applicable law requires insurers to provide no less than 36 months plus an additional 6 months for "good cause." Commissioner Lara, and the California Department of Insurance have determined that the COVID-19 pandemic constitutes a "good cause" under the applicable laws, as it is a circumstance completely beyond the control of the insured.

Insurers were notified that they shouldn't try to enforce statutory deadlines on policyholders for any deadlines which, if not met, could force policyholders to lose coverage.