What to know about California fires insurance claims, Homeowners insurance Fraud, Cancellations
Enforcement Against homeowners Insurance Fraud and Support for Wildfire Victims
The message is clear: If you commit homeowners insurance fraud, you will be arrested, prosecuted, and punished to the fullest extent of the law.
Address from the California Insurance Commissioner
I want to express my gratitude to the sheriffs, commissioners across the nation, and international insurance supervisors who have extended their support. My deepest sympathies go out to my fellow Angelenos and the brave firefighters battling these devastating wildfires.
My top priority is to protect all affected individuals during this crisis and assist them in their insurance recovery. My primary duty is to ensure that wildfire victims receive the insurance benefits they are entitled to as swiftly as possible.
Addressing the Crisis
The magnitude of the destruction caused by these wildfires, combined with the financial and insurance challenges they bring, is unprecedented. At the Department of Insurance, we have extensive experience handling wildfires and natural disasters. Our expertise allows us to respond effectively and ensure victims receive the support they need.
Right now, your focus should be on your family and health—not worrying about insurance matters. Here are the immediate actions we have taken to safeguard wildfire victims:
Moratorium on Insurance Cancellations
I have invoked my moratorium authority to prevent insurance companies from issuing non-renewals and cancellations.
- Issued a bulletin protecting homeowners affected by the Palisades and Eaton fires from non-renewals and cancellations for one year.
- This protection applies even if your home was not directly damaged by the wildfire.
- Residents can look up their ZIP codes to verify their eligibility for this protection.
Call to Action for Insurance Companies
I am calling on insurance companies to suspend all pending non-renewals and cancellations issued before these fires began.
- If you received a non-renewal notice between October 9 and January 7 (a 90-day period), your insurance provider should reinstate you as a valued policyholder.
- I urge all property insurers to pause these actions, providing much-needed stability for affected communities.
- This allows victims to focus on safety and recovery rather than battling insurance issues.
Extended Payment Grace Periods
To further aid victims:
- Requested insurers extend the payment grace period beyond 60 days for policyholders directly affected by the wildfires.
- This extension will provide residents the flexibility needed to maintain their home insurance coverage during this crisis.
If your policy was not renewed or if you lack coverage, please call us at 1-800-927-4357 for assistance in finding alternative solutions.
Combatting Fraud and Providing Assistance
We are taking proactive steps to protect wildfire survivors from fraud and assist in evacuation efforts:
- Our Enforcement Team is actively working to identify and prosecute fraudsters preying on victims.
- We have organized an Insurance Workshop on January 18-19 at Santa Monica College, followed by another event the following weekend at Pasadena City College.
- Insurance experts and company representatives will be present to answer questions and provide assistance.
- To schedule a one-on-one appointment, call 1-800-927-4357.
Strengthening Consumer Protections and Market Stability
Maintaining access to essential medical care and medications post-disaster is crucial. We are in constant communication with county leaders, the governor, and legislative officials to find ways to expedite recovery efforts and strengthen wildfire resilience across California.
A safer California is a priority. Looking ahead, I will ask the state legislature to support my proposal for consumer grant programs to help residents rebuild their homes and improve long-term resilience against future wildfires.
Expanding Protections for Businesses
Recognizing that businesses are a critical part of our communities, we will introduce legislation to include businesses under the moratorium law. This ensures that local enterprises remain financially stable and continue to serve their communities.
Ensuring Insurance Market Stability
Recent insurance reforms are now in effect, designed to create more stable and predictable insurance rates:
- Insurance companies must expand and maintain coverage in wildfire-prone areas.
- New regulations require insurers to incorporate forward-looking catastrophe models and reinsurance costs into their pricing strategies.
- These measures will bring competition back into the market, ultimately lowering costs for consumers while ensuring sufficient coverage.
Despite the devastation, I am confident these reforms will help modernize California’s insurance market, encourage insurers to return, and maintain the financial solvency of the industry. California remains the largest insurance market in the nation and the fourth-largest in the world.
Addressing FAIR Plan Reforms
Reforming the FAIR Plan, our insurer of last resort, is another priority:
- Coverage maximums have remained unchanged for 30 years and need to be updated.
- Some Californians still find available coverage insufficient despite recent reforms.
- We are working to implement long-term financial strategies to support those affected by catastrophic wildfires.
Once the fires are contained, we will gather detailed insurance industry data to assess claims and further strengthen our insurance policies.
Ensuring Insurance Companies Honor Their Commitments
Our focus remains on ensuring insurance providers fulfill their obligations to California consumers. We are here to help, not just through this crisis but in the long term.
For assistance, call 1-800-927-4327 or use our live chat feature on our website. Our team is multilingual and ready to help you understand your policy and rights.
Together, we will get through this. Thank you.
L.A. County Assessor’s Office Statement
At present, the government’s priority is controlling these wildfires. However, recovery efforts will soon take precedence.
Initial reports indicate that over 10,000 properties have been damaged or destroyed, with more likely to be identified. While property taxes may not be an immediate concern for affected residents, they will become a financial issue in the wake of the fires.
Under California law, homeowners and business owners may qualify for property tax relief through the Misfortunate Calamity Program, which allows for a reduction in assessed property values to reflect damage sustained during the disaster.
Key Details of the Property Tax Relief Program:
- To qualify, damage must exceed $10,000, and claims must be filed within 12 months.
- Upon filing, we will investigate, verify the claim, and reassess the property value.
- Reduced property tax assessments will remain in effect until the property is repaired, rebuilt, or changes ownership.
Legislative support may be necessary to maximize benefits for victims, and we look forward to working with officials on these improvements.
Coordination with the Treasurer-Tax Collector’s Office
For homeowners who pay property taxes directly, the program also facilitates coordination with the Treasurer-Tax Collector’s Office. This allows impacted residents to defer their property tax payments without incurring penalties or interest.
We are working closely with county officials to identify affected properties and assist homeowners and businesses through the claim process as efficiently as possible.
Once claims are processed, we will update tax records, recalculate taxes, and issue refunds if applicable. If additional taxes are due, new billing statements with adjusted due dates will be provided.
Please note: You should not pay anyone to access these services. For assistance, please contact the Assessor’s Office directly.
This revised statement ensures clarity and accessibility while preserving its urgency and key information necessary for affected residents. We stand with you in this recovery.
