A mandatory moratorium was issued, Thursday, that would block all insurance companies from canceling or not renewing the policies of people living in fire-prone areas in California.
California Insurance Commissioner Ricardo Lara issued the one-year moratorium, which will last until Dec. 5. 2020, following Gov. Gavin Newsom’s Oct. 11 emergency declaration that also barred insurance companies from canceling or non-renewing policies for residents living in areas that experienced major wildfires.
“I am calling on insurance companies to push the pause button on issuing non-renewals for one year to give breathing room to communities and homeowners while they adapt and mitigate risks, give the Legislature time to work on additional lasting solutions, and allow California’s insurance market to stabilize,” Lara said in a press release.