Firefighters squirt water from their hoses into a burning house near Santa Clarita, California. Photo: www. phys.org.
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For the second year in a row, California is experiencing a devastating wildfire season that affects rural populations in the north of the state. To protect the homeowners affected, the State Insurance Commissioner, Ricardo Lara in a conversation with Chelis López said that he ordered the insurance companies not to cancel their residential coverage and also to offer a broader coverage to those who live in areas with increased risks of forest fires.
For the second year in a row, California is experiencing a devastating wildfire season that to this day continues to affect rural populations in the north of the state. To protect the injured owners, the Insurance Commissioner, Ricardo Lara (RL), in conversation with Chelis López (CL) said that he ordered a moratorium so that insurance companies do not cancel residential coverage for those who have already suffered a fire, and also offer them a more comprehensive coverage, especially those who live in areas with higher risk of forest fires.
This is a summary of the conversation:
Commissioner of the California Department of Insurance, Ricardo Lara. Photo: Courtesy.
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RL: This moratorium really gives me the opportunity as Commissioner of Insurance, to negotiate with insurance companies so that we not only maintain the cost of premiums, but also ensure that these policies are still being issued, in those communities that are affected by forest fires.
CL: Maintain the cost of premiums… About how many people, Commissioner, are protected, and for how long?
RL: There are almost 22 counties, we have thousands of people who are currently protected for one year. So we have a list of the zip code; If the person has any questions, they can go to our website (California Department of Insurance), and there you can see not only the term but also if you qualify for this moratorium.
CL: What does a person have to do in order not to lose their insurance?
RL: Regardless of whether we are in a wildfire area or not, all insurance companies, by law, are going to have to offer these types of discounts. Just as they do with people who drive with more caution, who have fewer violations, they are given a discount on their driving insurance. Hopefully they will do the same for people who are doing everything they can to protect their homes.
CL: How to alleviate this so that a person who has gone through a disaster at home, does not have to deal with all this process to make a claim?
RL: It is important that people know that decisions do not have to be made immediately. Because the insurers, or they do not give them everything they deserve for the benefits they are paying… It is a family against an insurer, the insurer will always win. So that’s why we, as the Department of Insurance, are here to help people go through the entire process.
CLCommissioner, do you know of any other tactic insurance companies use to save on what they pay on a claim?
RL: Well, we are making these rules so that people have that incentive to continue to protect their property. Because what we also see is, either they cancel my account, or they don’t take into account what I’m doing. Because what happened is that they just gave you a fire policy, and then you have to pay for different policies to be able to cover your entire house. But we fought in court and the judge said that I have the authority to ask the Fair Plan * to make a single policy; because the people who live in those communities have left the cities because frankly they do not have money to be able to be in a house in a city. We are doing several things to be able not only to maintain these policies, but to give the resources to the communities to plan, and to be ready to protect their properties when the next wildfire hits. ■
It was Ricardo Lara, California Insurance Commissioner in conversation with Chelis López.
Listen to the full interview in our archives Open line, from Monday, October 11, at radiobilingue.org
To request help, go to
California Department of Insurance
Or call 1-800-927-4357 (Spanish speaking).
*- Mandatory insurance plans, offered by the state and designed to cover homeowners who cannot obtain insurance through the traditional marketplace. But these plans often provide less coverage and are often more expensive than traditional homeowners insurance policies.
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