On a daily basis, we hear “My home insurance is canceling because I’m in a wildfire area.”
Insurance companies are in a panic and rightfully so; claims made during a wildfire can financially devastate them. To avoid taking a potentially disastrous financial hit, many insurance companies have stopped issuing new policies in specific areas in CA and/or have made the decision to not renew current clients that reside in fire hazard areas (according to their specific criteria).
According to the US Forest Service, more than 3.6 million California residents are located in the wildland-urban interface where wildfires are most likely to occur. This doesn’t include the thousands of other homes where wildfires unexpectedly strike. With so many properties in high-risk areas, California insurers are at a disadvantage.
On December 5, 2019 (for the first time in history), the California Insurance Commissioner issued a mandatory moratorium on non-renewals after recent wildfire activity. This means that for one year, insurance companies are unable to cancel home policies because a property is located in a high fire risk area that is adjacent to select recently burned areas.
This Commissioner’s decision had a 2-pronged goal.
- Provide temporary relief to homeowners, renters and business owners located in wildfire areas.
- Give insurance companies time to create a long-term solution for the instability in these wildfire disaster areas.
This ruling helped approximately 800,000 lucky homeowners in high fire risk areas throughout California as they benefit from one more year with their current home insurance provider and (hopefully) reasonable home insurance premiums.
Does the insurance commissioner’s ruling affect everyone being canceled by their home insurance company in California?
No, it only helps the properties in zip codes next to recent wildfire disaster areas. The California Department of Insurance partnered with CAL-FIRE and the Governor’s Office of Emergency Services to determine the wildfire regions and zip codes that qualify for the mandatory moratorium. Please scroll down to see the list of zip codes and their related fires.
Government officials are concerned that the lack of being able to obtain affordable home insurance will significantly impact the health of the California real estate market. The inability to find fairly priced home insurance has caused numerous home sales to stall or cancel. The lack of real estate sales leads to a downward spiral of lowering home values, an inability to sell property and less tax revenues for necessary emergency services that help keep California communities safe and strong (for example firefighters/fire protection, community fire mitigation, police officers and law enforcement, road repairs, hospitals, etc.).
If you received a notice of cancellation or non-renewal for a home or income property located in a high risk wildfire area, Einhorn Insurance can help. Please visit our wildfire insurance page and request a quote. You can also call 619-313-4643. Our goal is to provide you with an estimate within 2 business days.
FIRES AND ZIP CODES UNDER THE ONE YEAR MORATORIUM
46 FIRE: 92509, 92504, 92503, 92506, 92324, 92505, 92570, 92508, 91752, 92337, 92316, and 92501
EAGLE FIRE: 92881, 92503, 92882, 92879, 92883, 92570
EASY FIRE: 93065, 91360, 93021, 93063, 91320, 93012, 91362, 91361, 91307, 93015, and 93066
GETTY FIRE: 90049, 90025, 90024, 90272, 90403, 91403, 91436, 90402, 90077, 90095, 90073
GLEN COVE FIRE: 94591, 94534, 94590, 94510, 94589, and 94503
HILL FIRE: 92509, 92504, 92324, 92505, 91752, 92337, 92316, 92501
HILLSIDE FIRE: 92407, 92345, 92376, 92346, 92308, 92314, 92404, 92315, 92405, 92352, 92344, 92377, 92371, 92411, 92325, 92382, 92397, 92359, 92386, 92391, 92341, 92333, 92322, 92321, 92358, 91759, 92317, 92378, and 92385
KINCADE FIRE: 95404, 95403, 95492, 95448, 95425, 94515, 95461, 95441, 94928, 95409, 95401, 95407, 95405, 95451, 94574, 95446, 95436, 95467, 94951, 95442, 95445, 95457, 94508, 95421, 95452, 95449, 94567, 95439, 94576, 95426
MARIA FIRE: 93060, 93066, 93003, 93010, 93012, 93021, 93001, 93036, 93004, 93023, 93015, 93022
RECHE FIRE: 92324, 92509, 92376, 92557, 92507, 92373, 92410, 92354, 92316, 92501, 92313, 92408, 92401, 92318, 92350, 92521, and 92415
SADDLE RIDGE FIRE: 91342, 91344, 91326, 91311, 91321, 91381, 93063, 91331, 91350, 91355, 91387, 91304, 91354, 91343, 91306, 91351, 91352, 91325, 91042, 91324, 91040, 91384, 91340, 91390, 91345, 93015, 93510, 93040, 91330
SANDALWOOD FIRE: 92373, 92320, 92374, 92399, 92223, 92555, 92324, 92557, 92354, 92318, and 92350
SKY FIRE: 94553, 94572, 94525, 94523, 94549, 94520, 94530, 94803, 94547, 94563, 94564, 94708, and 94569
TICK FIRE: 91387, 91351, 91390, 91342, 93551, 91350, 91354, 91321, 91384, 93510, 93532
WOLF FIRE: 92220, 92223, 92399, 92583, 92549, 92256, 92230, 92339, and 92282
OLD WATER FIRE: 92404, 92346, 92407, 92410, 92405, 92325, and 92322
