California Insurance Commissioner Ricardo Lara published a bulletin announcing a moratorium on cancellations and non-renewals of residential property insurance policies that meet certain criteria following the Thompson fire in Northern California.
California statutes provide that insurers cannot cancel or non-renew residential property policies within or next to a fire perimeter due solely to the fact that the property is located in an area where a wildfire occurred. The moratorium is in effect for one year after the declaration of a state of emergency.
As expected, Governor Gavin Newson declared a state of emergency in Butte County due to the Thompson fire on July 3, 2024. As a result, insurers may not cancel or non-renew residential property policies due to wildfire risk for one year in the following ZIP codes, as determined by the Department of Forestry and Fire Protection: 95901, 95914, 95915, 95916, 95917, 95919, 95920, 95938, 95941, 95948, 95953, 95954, 95965, 95966, 95968, 95969, 95972, 95974. If additional ZIP codes are determined to be within or adjacent to the fire perimeter at a later time, the Department will issue an updated list.
This action will protect around 46,000 policyholders within or adjacent to the fire perimeter. Consumers who were non-renewed before the emergency declaration should contact the Department of Insurance for assistance.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.