California Bill to Extend Insurance Protections for Wildfire Survivors Advances

Altadena, June 24, 2025 (File Photo – Melissa Michelson)

A bill aimed at strengthening protections for wildfire survivors navigating insurance challenges has cleared a key legislative hurdle in the California State Assembly.

By News Desk

Assemblymember John Harabedian (D-Pasadena) announced that Assembly Bill 2038 (AB 2038) has passed the Assembly Committee on Insurance. The legislation seeks to extend the period during which insurance companies are required to renew existing homeowner policies following a natural disaster.

The bill comes in response to the devastating Eaton and Palisades fires of January 2025, which severely impacted Altadena and broader Los Angeles County. Under current California law, insurers are subject to a one-year moratorium on canceling residential insurance policies in designated disaster zones, and a two-year moratorium for homes that were completely destroyed.

However, lawmakers and advocates argue these timelines fall short of the realities faced by wildfire survivors. Recovery from such disasters is often prolonged and costly, with rebuilding efforts in Los Angeles County progressing more slowly than in other regions affected by recent wildfires.

“Navigating recovery after a wildfire has not been a straight path,” Harabedian said. “Granting more time to homeowners so they can focus on recovery without the burden of insurance coverage remains crucial to reducing displacement and providing stability to our communities.”

AB 2038 proposes extending the insurance nonrenewal moratorium to two years for homes located within a fire perimeter ZIP code and to three years for properties declared a total loss. Supporters say the measure better reflects the long-term challenges of post-wildfire recovery.

Assemblymember Rick Chavez Zbur (D-Hollywood), a joint author of the bill, praised the effort. “I am proud to stand with communities across California who know all too well the devastating impact wildfires can have on families, homes, and peace of mind,” he said, emphasizing the importance of maintaining accessible and affordable insurance coverage.

Advocates also voiced support for the proposal. Joel Laucher, a program specialist with United Policyholders, noted that non-renewals are a common issue following disasters. “The current law is very helpful, but extending it will be even more helpful,” he said, adding that survivors already face numerous challenges without the added burden of securing new insurance.

AB 2038 will next be considered by the Assembly Appropriations Committee as it continues through the legislative process.