Mariposa, California
Sierra Sun Times file photo

Mandatory one-year moratorium prevents homeowners’ insurance cancellations and non-renewals following Governor’s September 19 emergency declaration

September 27, 2025 - SACRAMENTO, Calif. — On Friday, Insurance Commissioner Ricardo Lara ordered insurance companies to preserve residential property insurance coverage for approximately 124,000 homes affected by wildfires in Calaveras, Tuolumne, San Joaquin, Stanislaus, Mariposa, and Merced counties after Governor Gavin Newsom issued an emergency declaration on September 19. The Commissioner’s Bulletin shields those living within the perimeters or adjoining ZIP Codes of the TCU September Complex Fire from insurance non-renewal or cancellation for one year from the date of the Governor’s emergency declaration regardless of whether they suffered a loss.

“I am acting to protect Sierra foothill residents who have already been through a lot. Nobody should worry about losing their insurance coverage after going through a wildfire emergency,” said Commissioner Lara. “This protection is needed now as we bring back insurance options to all parts of our state for those who need them the most.”  

Under Commissioner Lara’s Sustainable Insurance Strategy, five insurance companies have announced they are staying and growing in parts of the state affected by wildfires, including three of the largest – Mercury, CSAA, and USAA — along with Pacific Specialty and California Casualty.

The Commissioner’s ability to issue moratoriums is a result of a California law he authored in 2018 while serving as state senator in order to provide temporary relief from insurance non-renewals and cancellations to residents living within or adjacent to a gubernatorial-declared wildfire disaster.

Since 2019, under this residential moratorium law, Commissioner Lara’s actions have protected more than 4 million homeowners. Today’s order protects an estimated 124,000 policyholders in 39 ZIP Codes for one year, effective September 19, 2025. Consumers who were non-renewed prior to the emergency declaration date and are unable to obtain insurance or are dissatisfied with their current coverage should contact the California Department of Insurance for assistance in understanding their options and tools.

In addition, Commissioner Lara has sponsored the Business Insurance Protection Act (SB 547, Pérez and Rubio) broadening the insurance moratorium to include businesses, homeowners' associations, condominiums, affordable housing, and non-profits. SB 547 passed the Legislature with no opposition and is currently awaiting action by Governor Newsom. 

Consumers can go to the Department of Insurance website to see if their ZIP Code is included in the moratorium. Consumers also should contact the Department at 800-927-4357 or via online chat or email at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.

Commissioner Lara’s major wildfire-related actions since taking office in 2019 include:

• Implementing California’s Sustainable Insurance Strategy, the largest insurance reform since voters passed Proposition 103 in 1988. This new strategy is a comprehensive approach to modernizing California’s insurance market by improving insurance choices for consumers, creating a resilient insurance market, and protecting communities from climate threats, while addressing the long-term sustainability of the nation’s largest insurance market.
• Creating “Safer from Wildfires,” a new insurance framework that incorporates wildfire safety measures to help save lives while making homes and businesses more resilient. Safer from Wildfires was created by a first-ever partnership between the Department and the emergency and preparedness agencies in the Governor’s Administration, including CAL FIRE, the Governor’s Office of Emergency Services (CalOES), the Governor’s Office of Planning and Research, and the California Public Utilities Commission.
• Finalizing new regulations to incorporate Safer from Wildfires in insurance pricing, driving down costs for consumers who have taken actions to protect their communities while increasing transparency about their home’s or business’s “wildfire risk score.”
• Sponsoring new insurance protections signed into law by the Governor — despite opposition from insurance companies — that will mean larger payouts for some claims, less red tape from insurance companies, and more help for people under evacuation orders.
• Ordering the FAIR Plan, the state’s insurer of last resort, to offer a more comprehensive homeowners policy as an option, which a judge upheld, as well as expanding residential and commercial coverage limits for the first time in 25 years to keep pace with increased costs. 

Following Governor Newsom’s state of emergency declarations, the Department of Insurance partners with CAL FIRE and CalOES, pursuant to existing statute, to identify wildfire perimeters for mandatory moratorium areas. The Department will continue to collaborate with CAL FIRE and CalOES to identify additional wildfire perimeters for any fires where there is a gubernatorial declaration of a state of emergency.

Notes:

• On September 19, 2025, Governor Newsom proclaimed a state of emergency due to the TCU September Complex Fire.
• While existing law prevents non-renewals and cancellations for those who suffer a total loss in areas subject to a declared disaster, the 2018 law established protection for those living within or adjacent to a declared wildfire emergency whether they suffer a loss or not — recognizing for the first time in law the disruption that non-renewals cause in communities following wildfire disasters. Homeowners who suffered a total property loss have up to 24 months of protection from non-renewal or cancellation.
• Consumers can go to the Department of Insurance website to find the Commissioner’s Bulletin to see if their ZIP Code is included in this moratorium.
  
  Source: CA. Dept. of ins.