California installs nonrenewal moratorium for Smith River, Happy Camp regions

Following emergency declarations issued in late August 2023 in response to the Smith River Complex and Happy Camp Complex fires, California is instituting a one-year moratorium on non-renewals or cancellations for properties in Del Norte and Siskiyou counties, the California Department of Insurance (CDI) reported.

This moratorium will affect more than 15,000 policyholders living within the perimeters or adjoining ZIP codes of the Smith River and Happy Camp fires, according to CDI. More details on the exact properties impacted by this order are available on the CDI website.

The Happy Camp Complex fire, which started in Siskiyou County, has burned more than 22,000 acres, according to the emergency proclamation. The Smith River Complex Fire has burned more than 73,000 acres in Del Norte County since being ignited by lightning in Six Rivers National Forest.

“Consumers affected by these recent wildfires need to have peace of mind that they have time to assess, rebuild and recover, and not have the added pressure of worrying about their insurance,” California Insurance Commissioner Ricardo Lara said in a release. “My moratorium order is just one of the many ways that I am taking action to provide relief to homeowners while I continue to work with stakeholders and climate experts to address the root causes of these ever-intensifying natural disasters in order to prevent even greater losses.”

These moratoriums are mandatory due to a California law, which Lara wrote in 2018 when he served as a state senator.

The moratorium comes at a time when insurance carriers are curtailing new business in the state, or leaving the market entirely, as they struggle to achieve rate adequacy.

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