
California Insurance Commissioner Ricardo Lara is calling on insurance companies to comply with existing state laws that require advance payments for survivors of the recent Los Angeles wildfires, including the Palisades and Eaton fires. These catastrophic events have resulted in insured property losses estimated between $28 billion and $45 billion. Lara’s directive underscores the importance of adhering to consumer protection laws, including advance payments for personal property, additional living expenses, and rebuilding efforts.
Under California law, insurers must provide advance payments equivalent to 30% of the policy’s dwelling limit for personal property losses, along with four months of additional living expenses. These rules apply to standard insurance policies and those covered under the California FAIR Plan. Additionally, survivors have the option to rebuild or relocate without deductions for land value, ensuring they receive full policy benefits.
In response to the emergency, Lara also expanded a moratorium on insurance cancellations and non-renewals, protecting policyholders in ZIP Codes affected by the fires. While some insurers have gone above the legal requirements, Lara’s office noted complaints about others failing to comply. The commissioner emphasized the importance of consistent enforcement to ensure timely relief for survivors navigating the recovery process.