California Puts One-Year Halt On Insurers Dropping Customers In Wildfire-Prone Areas

California on Thursday ordered a one-year halt on insurance companies dropping customers in wildfire-prone areas at a time when state insurers are trying to limit spiraling costs from climate change.

The moratorium, the first of its kind in the state, affects about 800,000 homeowners in areas hit by 2019 wildfires. State Insurance Commissioner Ricardo Lara also asked insurers to voluntarily stop cancelling clients in other areas at risk to wildfire.

“I am calling on insurance companies to push the pause button on issuing non-renewals for one year to give breathing room to communities and homeowners,” Lara said in a statement.

The moratorium, which ends Dec. 5, 2020, is meant to draw insurers and state legislators to the negotiating table to find a solution to the state’s wildfire insurance dilemma.