As the Los Angeles wildfires continue to burn, California insurance commissioner Ricardo Lara has been taking several actions in response to affected residents' insurance needs. This is a roundup of these developments.
Moratorium on insurance cancellations and non-renewals
On January 15, the commissioner expanded a moratorium first issued on January 10 preventing homeowners insurance cancellations and non-renewals. The moratorium is similar to
The January 10 moratorium applies to those in the areas of the Palisades and Eaton fires, as well as ZIP codes bordering on those areas, in Los Angeles County, for one year following Governor Gavin Newsom's January 7 emergency declaration. The moratorium applies to those residents regardless of whether they suffered a loss.
The January 15 expansion of the moratorium adds those in the areas of the Hurst, Lidia, Sunset, and Woodley fires in Los Angeles County, also for one year following January 7.
In addition, the commissioner called on insurers to stop pending non-renewals or cancellations for any properties near wildfires. This includes non-renewals issued up to 90 days before January 7, but taking effect after the wildfires started. This pause would last six months. The commissioner also called for insurers to go beyond the existing 60-day grace period under existing law for policyholders to pay premiums.
Insurance workshops for wildfire survivors Jan. 18-19 and 25-26
The commissioner has announced two, two-day workshop events for Los Angeles wildfire survivors to help them better understand their insurance policy coverage and claims processes, as well as resources for rebuilding and recovery.
The first will be January 18 and 19 at Santa Monica College and the second will be January 25 and 26 at Pasadena City College. The state's Department of Insurance (CDI) is also planning another event to serve those affected by the Eaton Fire and others in Northeast Los Angeles County, with details to be announced. The commissioner will attend these events.
CDI experts will also be present to provide one-on-one consultations with residents to address specific and confidential insurance needs.
Oversight of insurance adjusters, advice against insurance scams
In other wildfire related actions, the commissioner issued an order for oversight of insurance adjusters, a reminder of rules for public adjusters, and announcement of disaster scam tips.
Out-of-state nonlicensed adjusters stepping in to handle the large volume of claims due to the wildfires must be overseen by California qualified and licensed adjusters, managers or insurers, the commissioner announced on January 13.
Insurers are required to provide an adjuster for claims. Public adjusters, who are hired and compensated independently by policyholders, cannot solicit business from disaster victims until seven days after an event.
Also, public adjusters may not contact policyholders between the hours of 6 p.m. and 8 a.m., unless requested by the policyholder. Public adjusters may not solicit policyholders while evacuation orders are in effect, and since the Los Angeles wildfires are considered a catastrophic disaster, they must wait until seven days after evacuation orders end.
CDI has posted disaster scam tips
Healthcare, prescription and health insurance emergency access
The commissioner has required California health insurers to provide emergency plans to ensure continued access to medically necessary health care services for the duration of the wildfire state of emergency issued January 7. The commissioner announced the order on January 9 and plans were due on January 11.
Under the order, prescription refill waiting periods are suspended. Health insurers must also remove barriers to access outpatient prescription drugs, allow orders of 90-day supplies of prescriptions, waive delivery charges, and eliminate step therapy and prior authorization processes for prescriptions.
Health insurers must also provide a toll-free telephone number for consumers, ensure access to medical care, even if outside their network. Patients will only be responsible for in-network rates. Insurers must also provide plans to replace medical equipment or supplies.
Additional Living Expenses (ALE) provisions
On January 8, the commissioner stated that homeowners or renters insurance policyholders who evacuated because of the wildfires may be eligible for coverage of evacuation and relocation costs, under Additional Living Expenses (ALE) provisions.
ALE typically includes food and housing costs, furniture rental, relocation and storage, and extra transportation expenses.
For further questions about ALE coverage, CDI can be reached at 1-800-927-4357 or
