In a letter to the California Legislature, the Consumer Federation of America urged lawmakers to support AB 2038, which extends the insurance moratorium protections for Californians recovering from wildfire disasters. This bill will update an important consumer protection to match the rebuilding realities faced by homeowners in the wake of catastrophic events.
Currently the Insurance Commissioner can declare an insurance moratorium, preventing insurers from canceling or failing to renew residential policies after a state of emergency. That moratorium currently lasts one year for properties located in or adjacent to a fire-perimeter ZIP code, and two years for properties that are a total loss. But now it takes longer to repair or rebuild homes. AB 2038 extends the moratorium by an additional year, giving consumers the time they need to fully recover.