California State Capitol (File Photo – ca.gov)
A new California law will give wildfire survivors more time to recover before their homeowners insurance can be canceled or nonrenewed because of a disaster.
By News Desk
AB 2038, authored by Assemblymember John Harabedian (D-Pasadena) and co-authored by Assemblymember Rick Zbur (D-Hollywood), was signed into law today. The measure extends California’s existing protections for homeowners affected by major disasters.
Under current law, homes located in or adjacent to a fire-perimeter ZIP code are protected from insurance cancellation or nonrenewal for one year after a state of emergency is declared. AB 2038 extends that protection to two years.
For homeowners whose primary residence is completely destroyed, the law extends protection from two years to at least three annual renewal periods and at least 36 months from the date of the total loss.
The protections apply to qualifying disaster-affected properties throughout California and are not limited to the Eaton or Palisades fires.
Wildfire survivors can spend years navigating insurance claims, securing temporary housing, removing debris, obtaining permits and rebuilding. Losing homeowners insurance during that process can create an additional obstacle as families work to rebuild.
“After a wildfire, families already have enough to deal with. They should not have to worry about losing their insurance while they are trying to put their lives back together,” Harabedian said. “We saw that clearly after the Eaton Fire, but this is not just an Altadena issue. Wildfires are affecting communities across California, and our laws need to protect families wherever disaster strikes.”
The law builds on California’s existing post-disaster insurance protections, which were created after previous wildfires to prevent insurers from dropping homeowners immediately after a declared disaster. AB 2038 recognizes that rebuilding a home can take years.
The measure is part of Harabedian’s broader wildfire recovery package, which also includes statewide standards for wildfire-smoke contamination and mortgage protections for homeowners affected by disasters. The package was developed in response to lessons from the Eaton and Palisades fires and survivors’ experiences navigating recovery.
AB 2038 takes effect Jan. 1, 2027.
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