Key Takeaways
- Lara’s Moratorium Authority: California Insurance Commissioner Ricardo Lara has long-standing “moratorium powers” to prevent insurers from canceling policies in wildfire-affected areas. This authority was not used when insurers first began to withdraw from high-risk zones.
- One-Year Mandate—but Delayed: The newly issued one-year moratorium covers specific ZIP codes impacted by the Palisades and Eaton wildfires in Los Angeles. Despite the coverage relief, the timing means many victims lost their policies before the fires struck.
- Where to Check: If you live in one of the affected areas, visit the California Department of Insurance website to see if your ZIP code is covered.
By Samuel A. Lopez – USA Herald
LOS ANGELES, CA – I’ve spent over two decades immersed in the legal and insurance sectors, and yet, I’ve rarely witnessed the level of frustration and betrayal felt by Californians over the recent wave of insurance cancellations. If you’re tuning in from the Los Angeles area—or anywhere in wildfire-prone California—you’ve likely heard that the state has slapped down a new moratorium preventing insurers from canceling or non-renewing homeowners’ insurance policies in certain ZIP codes devastated by the Palisades and Eaton fires.
But here’s the bigger story: Our state’s Insurance Commissioner, Ricardo Lara, had the power all along to stop giant insurers like State Farm and Allstate from fleeing wildfire risks. For months (if not years), we watched helplessly as policies were canceled left and right, leaving countless homeowners in the lurch. Now, after homes have been reduced to ash and hundreds of families lost everything, Commissioner Lara has decided to use those “moratorium powers.”
On Thursday, Lara said “I am using my moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don’t face the added stress of finding new insurance during this horrific event.”
Yes, it’s a relief to see a one-year ban on cancellations for specific areas, but one can’t help wondering: What took so long? Governor Gavin Newsom has been issuing emergency proclamations for at least a year due to wildfire risks. Meanwhile, the insurance exodus has been no secret—especially during the scorching summer of 2024, when we saw an unprecedented spike in cancellations. So, why did the Commissioner wait until now, after irreparable damage, to act?
