Wildfires in California: How Homeowners Insurance May Be Affected

As wildfires continue to rage in Southern California, homeowners are understandably worried about how they may impact their insurance coverage. According to industry experts, some homeowners may have lost their insurance coverage just before the fires, a situation that is not allowed under the law.

"Insurance companies are not allowed by regulators to just drop policies; it doesn't happen that way," said Mark Friedlander, director of corporate communications at the Insurance Information Institute.Friedlander explained that in places like Florida, homeowners must receive at least 120 days of notice on non-renewals by insurers. In California, however, the requirement is just 75 days. Many carriers have pulled back on policies in California under pressure from state regulations, which Friedlander believes is now easing.Homeowners left with few options may have access to a state-run insurance program. However, there are concerns that these fires could apply additional stress to the program.