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When wildfires tear across California, the first priority is always safety. Evacuations, protection of life, and immediate survival take precedence. But once the flames die down, many homeowners face a second crisis: whether they will be able to keep or regain their home insurance coverage.
In a recent NBC4 Los Angeles report featuring insurance expert Karl Susman of Insurance Hour, attention turned to a powerful but often misunderstood consumer protection — California’s mandatory one-year non-renewal moratorium after declared disasters. Along with key policy benefits and pending regulatory reforms, this safeguard plays a critical role in protecting homeowners in wildfire-prone regions.
The Growing Crisis in California’s Wildfire Insurance Market
Worsening wildfire seasons have dramatically reshaped California’s insurance landscape. Tens of thousands of homeowners have seen their policies non-renewed in recent years, particularly in high-risk regions such as San Bernardino, Napa, and Sonoma Counties.
After major fires, homeowners often ask the same urgent question: Will I still have insurance after this?
Karl Susman explains that fear is understandable — but not always justified.
“As soon as CAL FIRE establishes a perimeter,” he said, “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 temporary freeze is the foundation of California’s wildfire insurance protection system.
What the One-Year Non-Renewal Moratorium Does
When the governor declares a state of emergency due to 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 affected zone.
Key protections include:
- If your home is inside the wildfire perimeter or within a designated adjacent ZIP code, your insurer cannot legally drop your coverage for one year.
- The protection applies even if your home suffered no physical damage.
- Homeowners who experienced total losses receive additional safeguards, including guaranteed renewals and expedited claims handling.
This rule is designed to prevent insurers from retreating immediately after a disaster and leaving residents uninsured during rebuilding.
“The one-year protection applies even when there’s no loss at all,” Susman clarified. “It allows people to focus on recovery instead of panicking about coverage.”
What Homeowners Should Do Immediately After a Wildfire
Even if your property survived, taking early action is critical to protect your rights and benefits.
First, obtain a digital copy of your homeowners policy immediately. Request a PDF from your agent or carrier so you can verify your coverage, limits, and endorsements.
Second, confirm your evacuation and additional living expense coverage. Many policies provide Additional Living Expense (ALE) benefits for hotels, meals, and temporary housing, but coverage depends on:
- Whether a state of emergency was declared
- Whether the evacuation was mandatory or voluntary
- The specific wording of your policy
Susman advises homeowners to ask their broker directly how evacuation benefits apply under their specific policy language.
Third, understand that you cannot change coverage during an active wildfire. When a fire is burning nearby, insurers impose a moratorium on policy changes. You cannot increase limits, add endorsements, or bind new coverage until the immediate threat passes. This makes advance preparation essential.
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Lesser-Known Wildfire Coverage You May Already Have
Beyond basic fire and personal property protection, many homeowners policies include valuable secondary benefits, often with sub-limits. These may include:
- Debris removal for damaged structures and vegetation
- Food spoilage caused by outage-related refrigeration loss
- Tree and shrub replacement damaged by fire suppression
- Smoke damage cleaning for walls, carpets, and HVAC systems
Because these coverages are often capped, homeowners should review sub-limits carefully with their broker before fire season.
How to Verify Whether Your Home Is Protected by the Moratorium
The California Department of Insurance maintains an interactive wildfire moratorium map and ZIP code list that identifies all protected communities.
If your ZIP code appears on the CDI list, your insurer is legally prohibited from cancelling or non-renewing your homeowners policy for one year following the emergency declaration.
“It’s one of the strongest consumer protections in the country,” Susman said. “It exists so homeowners can focus on safety and recovery.”
Additional Rights for Homeowners with Total Fire Losses
If your home is completely destroyed, additional legal protections apply:
- Insurers must offer renewal policies to support rebuilding or relocation.
- Extended replacement cost benefits may apply if selected prior to loss.
- Advance payments may be available for temporary housing, debris removal, and immediate living expenses.
Homeowners are urged to document all expenses, losses, and insurer communications carefully to avoid delays or disputes.
New Insurance Rules Aimed at Restoring Market Access
As wildfire risk intensifies, regulators are pushing new reforms to stabilize California’s fragile insurance market. New regulations announced in mid-2024 would require insurers to offer coverage in designated high-risk and underserved zones where many carriers have withdrawn.
These new rules, expected to take effect in late 2024 or early 2025, aim to expand access while allowing risk-based pricing.
“You may pay a higher premium,” Susman said, “but at least you’ll have options.”
For many homeowners, availability now matters more than price alone.
Key Homeowner Actions Before, During, and After Wildfires
Before fire season, homeowners should review policy limits, confirm evacuation benefits, and verify replacement cost coverage. Once a wildfire is active, focus on evacuation safety, maintain digital policy records, and stay in contact with your agent when possible. After the fire, claims should be filed promptly, and homeowners should confirm whether their ZIP code qualifies for the one-year non-renewal protection.
Long-term, homeowners should stay informed about regulatory changes, surplus market options, and FAIR Plan availability to maintain continuous protection in high-risk zones.
Understanding the Role of the California FAIR Plan After Wildfires
When homeowners cannot secure private coverage even after a disaster, the California FAIR Plan serves as a last-resort fire insurance option. It provides limited fire coverage and can be paired with a Difference-in-Conditions (DIC) policy for liability, theft, and water damage.
“It’s not ideal,” Susman often reminds listeners, “but it’s a safety net while the market stabilizes.”
Final Thoughts: Why Preparation Is the Best Wildfire Insurance Strategy
Wildfires may be unavoidable, but losing your insurance coverage doesn’t have to be. California’s one-year moratorium gives homeowners critical breathing room after disaster strikes — but only if they understand and use the protection properly.
“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 natural disaster is an annual reality, true protection comes from both physical preparation and financial readiness. Knowing your wildfire insurance rights is now an essential part of owning a home in California.
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