NBC - KNBC - How To Maintain Your Home Insurance After A Wildfire (Airdate: 2024-09-11)

Published Date: 09/11/2024

How to Maintain Your Home Insurance After a Wildfire: What Every California Homeowner Needs to Know

When wildfires rage across California, the immediate focus is safety — evacuating, protecting loved ones, and securing what matters most. But after the flames die down, many homeowners face a second crisis: keeping or regaining their home insurance coverage.

In a recent NBC4 Los Angeles report, featuring insurance expert Karl Susman from Insurance Hour, the spotlight turned to a lesser-known but powerful safeguard that protects homeowners in the aftermath of declared disasters — California’s mandatory one-year non-renewal moratorium.

This law, along with key coverage provisions and new market reforms, offers essential protections for anyone living in wildfire-prone areas. Here’s what every homeowner should understand — and how to prepare long before the next red flag warning hits.

The Growing Crisis: When Insurance Companies Pull Back

California’s worsening wildfire seasons have reshaped the insurance landscape. Tens of thousands of homeowners have been dropped by their carriers in recent years, especially in high-risk regions like San Bernardino, Napa, and Sonoma Counties.

As wildfires like the Line Fire in San Bernardino County continue to force evacuations and destroy property, many homeowners are asking:

“Will I still have insurance after this?”

According to Susman, that fear is understandable — but not always warranted.

“As soon as CAL FIRE establishes a perimeter,” he explained, “the Department of Insurance will normally put a lock in place, meaning carriers cannot non-renew properties in that area for at least a year.”

This is the heart of California’s one-year moratorium rule, designed to give residents breathing room in the wake of natural disasters.

What the One-Year Moratorium Actually Does

When the governor declares a state of emergency due to a wildfire, the California Department of Insurance (CDI) automatically enforces a 12-month ban on insurance companies canceling or non-renewing homeowners’ policies within or near the impacted zone.

This means:

• If you live within the wildfire perimeter or in an adjacent ZIP code designated by CAL FIRE and the CDI, your insurer cannot legally drop your coverage for one year following the declaration.
• The protection applies even if your home wasn’t damaged — as long as you’re within the declared area.
• Those who suffered total losses receive additional protections, including guaranteed renewals and expedited claims processing.

In short: the moratorium stops the domino effect of insurers fleeing the region after a major disaster. It ensures residents aren’t left uninsured during the most vulnerable period of rebuilding and recovery.

“The one-year protection applies to residential policyholders who suffered less than a total loss or even no loss at all,” Susman clarified. “It’s there so people can focus on recovery, not panic about losing coverage.”

What You Should Do Immediately After a Wildfire

If your area has been impacted by a wildfire — even if your home survived — there are key steps you should take to protect your insurance rights and prepare for possible claims.

1. Get a Copy of Your Policy — Now

Don’t wait until you need it. Request a digital copy (PDF) from your insurer or agent today. Having it on hand allows you to confirm exactly what’s covered — from evacuation expenses to rebuilding costs.

“You can usually call your agent or carrier directly,” Susman noted. “They can email you a copy within minutes.”

2. Understand Your Coverage for Evacuation and Living Expenses

If you’re forced to evacuate, your policy may cover Additional Living Expenses (ALE) — such as hotels, meals, and transportation.
However, coverage depends on several factors:

• Whether there’s an official state of emergency.
• Whether the evacuation was mandatory or voluntary.
• The specific wording in your policy.

Not all policies handle these details the same way, so Susman advised asking your broker directly:

“Ask them, ‘What will my policy do for me if there’s a mandatory evacuation?’ Every policy has slightly different language.”

3. Contact Your Insurer Early — But Don’t Expect Changes During a Fire

When a wildfire is actively burning, insurers are in what’s called a “moratorium period” — a freeze on policy changes. You can’t increase coverage, add endorsements, or start a new policy while a fire is active nearby.

“When there’s an active fire like there is right now,” Susman explained, “carriers are not able to make changes to your policy. You can’t just call and say, ‘I think I should have more coverage today.’ That’s not going to happen.”

So the best move is preparedness ahead of time. Review your limits and policy terms before wildfire season, not during it.

Coverage You May Not Realize You Have

Beyond the basics of fire damage and personal property protection, many standard homeowners’ policies include lesser-known benefits that can make a big difference during evacuation or recovery:

• Debris Removal – Covers clearing damaged structures or burned vegetation.
• Food Spoilage – Reimburses for groceries lost due to power outages.
• Tree and Shrub Coverage – Replaces landscaping damaged by fire suppression efforts.
• Smoke Damage Cleaning – Pays for professional cleaning of walls, carpets, and HVAC systems.

However, these are often subject to sub-limits — meaning they only pay up to certain amounts. Always review the fine print or ask your broker to clarify.

How to Check If You’re Covered by the Wildfire Moratorium

The California Department of Insurance regularly updates an interactive map and ZIP code list showing all communities protected by wildfire-related moratoriums.

You can check your address here:
📍 California Department of Insurance – Wildfire Moratorium Map

If your ZIP code is listed, your insurer cannot cancel or non-renew your homeowners policy for one year following the emergency declaration.

“It’s one of the strongest consumer protections in the country,” Susman said. “It’s designed so that homeowners can focus on safety and recovery, not fighting their insurance company.”

For Homeowners with Total Loss

If your home has been completely destroyed by wildfire, additional protections apply:

• Your insurer must offer at least a renewal policy to help you rebuild or relocate.
• You may qualify for extended replacement cost coverage if you selected it prior to the loss.
• You may be entitled to “advance payments” for temporary housing, debris removal, and living expenses.

Document everything — from evacuation costs to destroyed property — and keep detailed records of communications with your insurer or broker.

New Rules on the Horizon: Expanding Access in High-Risk Zones

As wildfires become more frequent and severe, regulators are working to restore stability to California’s fragile insurance market.

Susman referenced new regulations announced in mid-2024 that would require insurance companies to offer coverage in certain high-risk and underserved areas — regions where many carriers have withdrawn entirely.

These rules, expected to take effect by late 2024 or early 2025, aim to balance availability with transparency.

“These new rules will apply to areas of distress,” Susman said. “You might pay a higher premium, but at least you’ll have options.”

That trade-off — higher costs for broader availability — reflects the economic reality of insuring homes in fire-prone landscapes. Still, for many homeowners, having any choice is better than none.

Key Takeaways: How to Protect Your Coverage Before, During, and After a Wildfire

TimingWhat to DoWhy It MattersBefore Fire SeasonReview your policy, check limits, ensure coverage for evacuation expensesYou can’t make changes during an active wildfireDuring a FireEvacuate safely, keep digital records of your policy, contact your agent if possibleYour insurer can’t increase coverage during a moratoriumAfter the FireFile claims promptly, confirm if your area qualifies for the 1-year non-renewal banProtects your policy from being canceled or droppedLong-TermStay informed about new regulations and alternative coverage options (like FAIR Plan or surplus lines)Helps ensure continued protection in high-risk regions

Understanding the California FAIR Plan

If you’re unable to find private coverage even after a wildfire, California’s FAIR Plan remains a last-resort option.

It provides basic fire insurance to homeowners rejected by traditional carriers. While it doesn’t cover everything — like theft or liability — it can be paired with a Difference-in-Conditions (DIC) policy to fill the gaps.

“It’s not ideal,” Susman often reminds listeners, “but it’s meant as a safety net until the market stabilizes.”

Final Thoughts: Preparation Is the Best Protection

Wildfires may be inevitable, but losing your insurance coverage doesn’t have to be.

California’s one-year moratorium law ensures that in times of crisis, homeowners won’t face the added devastation of sudden policy cancellations. But staying protected requires active engagement — reviewing your coverage, asking the right questions, and understanding your rights.

“The best thing you can do is know what your policy says,” Susman emphasized. “Get a copy, read it, and talk to your broker before something happens. Because once there’s a fire, it’s too late to make changes.”

In a state where nature’s volatility meets human resilience, preparedness isn’t just about fireproofing your home — it’s about fireproofing your financial security.