Tahoe National Forest fire crew members survey the aftermath of Bear Fire. Photo courtesy of Tahoe National Forest.
SIERRA COUNTY — In the aftermath of the Bear Fire, which threatened the community of Sierra Brooks, California Insurance Commissioner Ricardo Lara has put into effect a fire insurance moratorium that prevents cancelation or non-renewal of fire insurance policies due to wildfire risk for six zip codes in eastern Sierra County. The moratorium, a result of California Insurance Code section 675.1 (Senate Bill 824 signed 2018), was catalyzed by the proclamation of a State of Emergency in Sierra County by Governor Gavin Newsom on November 1st, and insurance companies were notified of the moratorium by the Insurance Commissioner on November 8th.
Communities benefiting from the moratorium include Sierra Brooks, Loyalton, Sierraville, and Sattley. Also included are communities near Highway 80, such as Soda Springs and Verdi. Though well north of the fire, Portola and Lake Davis also fall under the reach of the moratorium, though Graeagle and some parts of Beckwourth do not. Specifically, the Insurance Commissioner lists the following affected ZIP Codes: 95728, 96111, 96118, 96122, 96124, and 96126.
For one year after a State of Emergency has been declared, insurers are prevented from canceling or refusing to renew a policy for the sole reason of being located in a wildfire area in any ZIP Code within or adjacent to the fire perimeter. Insurance companies must offer to rescind any notices of cancelation or non-renewal in the affected ZIP Codes issued between November 1st, when the State of Emergency was declared, and November 8th, when the Insurance Commissioner’s bulletin was released. The moratorium will end on November 1st, 2025.
Fire boundaries were determined by the Department of Forestry and Fire Protection in consultation with the Governor’s Office of Emergency Services. The Insurance Commissioner uses data from those offices to determine ZIP Codes subject to the moratorium.
Though the moratorium provides temporary relief and security for many affected by the Bear Fire, the cost and availability of fire insurance in Sierra County remain a major concern for the area. The Sierra County Board of Supervisors recently wrote a letter to Governor Newsom outlining worries over the lack of competition in the insurance market and reliance on the state-provided FAIR Plan. On October 11th, Gina Sanguinet, Associate Insurance Compliance Officer, wrote in response, “Insurance Commissioner Ricardo Lara and California Department of Insurance staff have been working with the Governor’s Administration, the State Legislature, and other stakeholders to come up with viable long-term solutions to the availability and affordability problem.”