California’s insurance moratorium is a state law that stops insurance companies from canceling or nonrenewing a homeowner's policy after a declared wildfire emergency. If your home is within or next to the declared perimeter, the protection applies automatically to your California home insurance policy for one year.
What is California's insurance moratorium after a wildfire?
California's home insurance moratorium was established under California Insurance Code Section 675.1, a 2018 law that lets the state insurance commissioner freeze policy nonrenewals and cancellations for one year from the date of the governor's wildfire emergency declaration.
The moratorium applies automatically, whether or not a home was damaged. Following the 2025 Palisades and Eaton fires, for example, the moratorium automatically protected homeowners in dozens of eligible ZIP codes for one year from the date of the governor's emergency declaration, regardless of whether their home suffered any damage.
If a home is declared a total loss, homeowners are entitled to even longer protection: insurers must offer at least two more annual renewals, guaranteeing a minimum of 24 months of coverage from the date of the loss.
How do you know if your ZIP code is covered?
The moratorium applies to ZIP codes inside or adjacent to a declared wildfire's perimeter, regardless of whether your home was affected. The California Department of Insurance (CDI) works with Cal Fire and the Governor's Office of Emergency Services to map these boundaries and publish a bulletin for each fire. You can also check California’s fire hazard zone map for details about your area's broader exposure.
Check your ZIP code: Here’s a current list of ZIP codes that qualify for the insurance moratorium.
What happens before and after the one-year window?
For homes located outside a designated ZIP code, standard nonrenewal rules apply. Insurance companies can still choose not to renew a policy, but must give at least 75 days’ written notice with the specific reason. Common reasons include a property's fire risk score, missed payments, or a broader shift in how an insurance company evaluates risk in a given area.
If your one-year protection period is ending, here are a few steps that can help you avoid a coverage gap:
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Start shopping early. Compare quotes from a few insurance companies before your home insurance policy renews to see if you can find a better rate.
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Read your renewal offer closely. Before your policy renews, check whether your premium (the cost of your policy), deductible (the amount you pay out of pocket in the event of a claim), or reimbursement method has changed.
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Contact CDI with concerns. If your insurer nonrenews your policy without a clear explanation, you can call the CDI's consumer helpline at 1-800-927-4357 or submit a question online.
What if you can't find coverage after the moratorium ends?
If your policy isn't renewed and you can't find home insurance in your area, start by shopping around with other insurance companies. You may still find a traditional insurer willing to cover your home, even if your current company won't renew.
If you strike out there, some California homeowners can get coverage through surplus lines insurance, sold by insurers that specialize in high-risk properties. These insurers aren't licensed by the state the way standard insurance companies are, so they have more flexibility to cover risks that traditional insurers won't. However, this type of insurance typically costs more and offers fewer consumer protections than a standard policy.
A last resort option is the California FAIR Plan, which provides basic fire insurance for homes that are uninsurable through the private market. It only covers a narrow set of damage-causing events (called perils) — fire, smoke, lightning, and internal explosion. It doesn't include protection for things like liability, theft, or water damage the way a standard home insurance policy typically does. Most FAIR Plan policyholders pair it with something called a difference in conditions (DIC) policy to fill those gaps, though this typically means paying two premiums instead of one.
Frequently asked questions
Is there a moratorium on Palisades fire insurance?
There was an insurance moratorium in California after the Palisades fire, but it expired on Jan. 7, 2026. Gov. Gavin Newsom declared a state of emergency for the Palisades and Eaton fires on January 7, 2025, and the California Department of Insurance ordered a one-year moratorium covering nearby ZIP codes. However, homes that were declared a total loss may have extended protection through 2027.
Was insurance canceled before the fires in California?
Some homeowners in wildfire-prone areas received nonrenewal notices before the major fires occurred. In 2023, for example, California insurance companies canceled or nonrenewed more than 788,000 policies on the private market. The broader trend of increased wildfire risks and rising reinsurance costs is part of why lawmakers created a moratorium law in 2018.
Did insurance companies pay out for California fires?
Yes. Insurance companies paid more than $22.4 billion to people affected by the wildfires in Southern California as of the end of 2025, according to the California Department of Insurance. The Palisades and Eaton fires accounted for most of that payout.
