Thousands of LA Wildfire Victims Get New Insurance Boost

Thousands of Los Angeles residents affected by the Hughes Fire have received an insurance boost after California insurance commissioner Ricardo Lara extended emergency protections to include homeowners in the areas surrounding the blaze.

Newsweek contacted the California Department of Insurance for comment via email outside of standard working hours on Thursday.

Why It Matters

Thousands were left without homes when the LA fires ravaged their properties in January. Many of them faced the prospect of looming non-renewals from insurers trying to back off from the most at-risk zones in the state.

With damages projected in the billions, homeowners' insurance will play a vital role in helping residents rebuild their lives in the aftermath of the disaster.

What To Know

A press release published Tuesday on CDI's website announced Lara had expanded a mandatory one-year moratorium preventing insurance companies from canceling or not renewing homeowners' policies in areas affected by wildfires.

The latest order now includes residents impacted by the Hughes Fire in Los Angeles County, providing critical relief as the state faces ongoing wildfire risks.

The new measure extends the previous protections for those affected by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley Fires in Southern California.

California has faced increasing challenges in its insurance market due to the rising frequency and intensity of wildfires. Many insurers have either withdrawn from offering coverage in high-risk areas or significantly increased premiums.

Hundreds of Los Angeles homeowners in the Pacific Palisades saw their policies canceled by insurance companies just months before the fires erupted across the city.

The fires that broke out last month destroyed 16,255 residential and commercial buildings, according to independent analysis by the Fire Safety Research Institute.

What People Are Saying

California insurance commissioner Ricardo Lara said in the press release: "Homeowners affected by the Hughes Fire and other devastating wildfires should not have to worry about losing their insurance coverage during this crisis.

"My moratorium powers ensure that insurers cannot cancel or refuse to renew policies for those in wildfire-impacted areas, providing much-needed stability and relief during this difficult time. My team and I are working tirelessly to protect consumers and help them receive the benefits they are entitled to as quickly as possible."

What Happens Next

Los Angeles residents can go to the Department of Insurance website to check if their ZIP code is among those included in the mandatory moratorium.

The first phase of the hazardous debris removal process has been completed, CBS News Los Angeles reported on Wednesday.

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