California homeowners have one new protection as the Los Angeles wildfires continue to ravage roughly 29,000 acres.
California Insurance Commissioner Ricardo Lara issued a one-year moratorium that protects homeowners’ insurance if they live in the areas impacted by the Palisades and Eaton wildfires on Thursday.
Why It Matters
The Palisades fire was the first to begin at 10:30 a.m. local time Tuesday morning. Since then, more than 5,000 properties have been destroyed.
The wildfires have also led to at least 10 deaths as of Thursday night.
Los Angeles homeowners also face significant risks of losing their homes. In a new LendingTree report, one in 10 Los Angeles homes were found to be uninsured. This is driven in part because home insurance has skyrocketed due to wildfire risks in California, and many home insurers have left the area completely.
For homeowners who do have insurance, though, the threat of losing insurance amid the wildfires is prevalent as insurers look to retain profits and cut their losses.
A firefighter watches the flames from the Palisades Fire burning homes on the Pacific Coast Highway amid a powerful windstorm on January 8, 2025 in Los Angeles, California. California homeowners have a new protection that… A firefighter watches the flames from the Palisades Fire burning homes on the Pacific Coast Highway amid a powerful windstorm on January 8, 2025 in Los Angeles, California. California homeowners have a new protection that will ensure they keep insurance for the next year. More Apu Gomes/Getty Images
What To Know
Lara’s moratorium is in effect until January 7, 2026, and prevents insurance companies from canceling insurance plans or enacting non-renewals for the year-long period.
This applies to all homeowners who live within the perimeters of the Palisades and Eaton wildfires.
The Department of Insurance website tells residents if their zip code is included in the moratorium.
You can contact the department if you feel your insurer violated the new rule at 800-927-4357.
What People Are Saying
California Insurance Commissioner Ricardo Lara said in a statement:
California Homeowners Get New Protection From Insurance Cancellations
