Mandatory One-Year Moratorium on Non-Renewals: Protecting California Residents from Wildfire-Related Insurance Cancellations
In response to the devastation caused by wildfires, California Insurance Commissioner Ricardo Lara authored Senate Bill 824 (2018), which mandates a one-year moratorium on the cancellation or non-renewal of residential insurance policies in areas affected by wildfires. This essential consumer protection law provides much-needed relief to homeowners and renters in high-risk zones, giving them a year to recover without the added concern of losing their insurance coverage.
The Importance of Senate Bill 824
“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” said Commissioner Lara. “This law gives millions of Californians breathing room and hits the pause button on insurance non-renewals while people recover.”
The law was designed to address a critical gap in disaster recovery: insurance companies often cancel or refuse to renew policies in areas hit by wildfires, leaving affected homeowners vulnerable to further hardships. Under Senate Bill 824, residential insurance policies are protected from cancellation or non-renewal for one year after a state of emergency is declared by the Governor due to a wildfire.
How the Moratorium Works
Once a state of emergency is declared, the California Department of Insurance, in partnership with CAL-FIRE and the Governor’s Office of Emergency Services, identifies wildfire perimeters and adjacent ZIP codes within the affected areas. The moratorium on cancellations or non-renewals lasts for a full year from the date of the Governor’s emergency declaration.
This protection applies to all residential policyholders within the designated areas who have not suffered a total loss in the wildfire, including those who were unaffected by the fire. For those who experience a total loss, additional protections are available.
Find Out if You Are Protected
If you live near a recent wildfire, you may be covered by the moratorium. The California Department of Insurance issues bulletins that list the affected ZIP codes, which are updated after each wildfire season. If your ZIP code is included, your insurance company cannot cancel or fail to renew your policy due to wildfire risk for a year following the Governor’s declaration.
Check the Commissioner's Bulletin for more information and a complete list of affected areas.
Recent Wildfire Declarations and Bulletins
Since the passage of SB 824, the Department of Insurance has issued several bulletins following wildfires in California. Below is a list of recent wildfire declarations and their respective bulletins:
2025 Wildfires:
January 7, 2025 Declaration – Amended January 17, 2025 Bulletin (Palisades, Eaton, Hurst, Lidia, Sunset, Woodley, and Olivas Fires in Los Angeles and Ventura Counties)
2024 Wildfires:
November 7, 2024 Declaration (Mountain Fire in Ventura County)
November 1, 2024 Declaration (Bear Fire in Sierra County; Shelly Fire in Siskiyou County)
September 29, 2024 Declaration (Boyles Fire in Lake County)
2023 Wildfires:
August 29, 2023 Declaration (Smith River and Happy Camp Complex Fires)
For a full list of declarations and links to the relevant bulletins, visit the California Department of Insurance.
What to Do if Your ZIP Code is Affected
If you live in a designated area and received a cancellation or non-renewal notice from your insurance company due to wildfire risk, you have the right to seek reinstatement. If your insurer refuses to restore your policy, you should contact the California Department of Insurance to file a Request for Assistance.
The Department continues to work with CAL-FIRE and CAL-OES to identify wildfire-affected areas each year and ensure that homeowners are protected during their recovery process.
How to Stay Informed
To stay informed about wildfire declarations and the latest moratorium updates, visit the California Department of Insurance website. You can also sign up for email alerts from the Department for updates on wildfire-related protections.
This law is an essential tool in California’s disaster recovery efforts, helping residents breathe a little easier in the aftermath of devastating fires. By ensuring that homeowners are not left without insurance during their recovery period, California continues to prioritize the well-being and protection of its residents.
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