The California Department of Insurance published a formal notice addressed to residential property insurance companies reminding them they are required to provide ALE benefits if a home is deemed uninhabitable following the 2025 wildfires.
The Department specifies that accessibility does not mean a home is fit to live in. There are many unsafe conditions that can make a home uninhabitable, including toxic debris and ash, contaminated water, and a lack of essential utilities.
County Public Health has stated that if Phase 1 & 2 of the fire debris removal and cleanup are not completed, an area remains hazardous and can lead to short and long-term medical conditions for anyone in the area. In a public health advisory, they warn of living within 250 yards of a burned structure, which can be greater if there are strong winds.
Insureds in the impacted areas of County Public Health’s Advisory should receive their ALE benefits as long as the advisory is in effect, or if the insured chooses to live elsewhere. For all other insureds, the Department is asking insurers to do their due diligence in determining whether a home is safe to live in.
The notice can be found here.