The death toll in the Los Angeles County wildfires rose to 24 confirmed deaths as more than 150,000 people were forced to evacuate from blazes that incinerated over 40,000 acres.
According to combined media reports, the Palisades Fire, the largest of the five fire that scorched the region, was 13% contained as of about 7:00 p.m. PST on Sunday while the Eaton Fire, which killed 16 people, was about 27% contained.
The causes of the wildfires are still under investigation. California Gov. Gavin Newsom stated the region would need a modern-day version of a “Marshall Plan,” adding that his office was already “looking at reimagining L.A. 2.0” that could be tied to the infrastructure projects planned for the 2028 Olympics scheduled for Los Angeles in 2028.
As for the current situation, the California Department of Insurance issued a mandatory one-year moratorium on insurance non-renewals and cancellations covering the perimeters or adjoining ZIP Codes of the Palisades and Eaton fires in Los Angeles County. The moratorium covers one year from Gov. Gavin Newsom’s Jan. 7 emergency declaration. The moratorium covers all properties, regardless of whether they suffered a loss.
The department also issued a notice calling on all insurance companies to stop any pending non-renewals or cancellations for any properties located near wildfires, if they are not already protected by the mandatory moratorium. This includes non-renewals issued up to 90 days prior to Jan. 7 but taking effect after the start of the wildfires. This pause on non-renewing and cancelling policies would last six months as impacted communities begin the recovery process.
Insurance Commissioner Richard Lara also called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediate affected wildfire areas, to pay their home insurance premiums given the challenges that many policyholders in these areas are having right now.
“I am using my moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don’t face the added stress of finding new insurance during this horrific event,” said Lara. “I am working on all fronts to make sure wildfire victims get the benefits they are entitled to, and they get it as soon as possible.”
Separately, the US Department of Housing and Urban Development (HUD) announced the implementation of federal disaster assistance for the areas affected by wildfires. HUD is providing a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration, as well as foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program. There is also a 90-day extension granted automatically for Home Equity Conversion Mortgages.
HUD’s moratorium and extension are effective as of President Biden’s disaster declaration date on Jan. 7.
However, rental housing prices have already spiked in the wake of the fires. A study of Zillow listings on Los Angeles’ Westside found asking rents soared between 15% and 64% since the wildfires began.
Photo: Los Angeles County Fire Department
