Mandatory One-Year Moratorium on Policy Cancellations Following the Gifford Fire

The California Department of Insurance (CDI) has issued Bulletin 2026-01, enforcing a mandatory one-year moratorium on the cancellation and non-renewal of residential property insurance policies for specific areas. Signed by Insurance Commissioner Ricardo Lara, this directive stems from Governor Gavin Newsom’s emergency declaration on December 23, 2025, following the devastating Gifford Fire.

If your company writes property coverage in California, or if you are a homeowner in the affected areas, here is everything you need to know about these mandatory protections.

What the Law Requires

Enacted under California Insurance Code section 675.1, subdivision (b)(1), insurers are strictly prohibited from canceling or refusing to renew a residential property insurance policy simply because the structure is located in a wildfire-impacted area.

• Duration: The protection lasts for exactly one year, running from December 23, 2025, through December 22, 2026.
• Scope: This applies to all policies that were actively in effect on the day the emergency was declared.
• Mandatory Rescissions: If an insurer issued a wildfire-risk non-renewal or cancellation notice on or after December 23, 2025, for a property in the protected zone, they must offer to rescind the notice and reinstate or renew the coverage.

What Types of Policies Are Covered?

The moratorium covers a broad spectrum of personal lines residential insurance. Under the statutory definitions, this includes:

• Individually owned residential structures (up to four dwelling units).
• Individually owned condominium units.
• Individually owned mobile homes and their contents.
• Residential renters' / tenant policies insuring personal contents.

Affected ZIP Codes (Gifford Fire Zone)

The moratorium specifically applies to properties located within or adjacent to the fire perimeters across San Luis Obispo and Santa Barbara counties. Insurers may not issue non-renewals due to wildfire risk in the following ZIP codes:

93023, 93105, 93224, 93249, 93251, 93252, 93254, 93268, 93401, 93405, 93409, 93410, 93420, 93421, 93422, 93424, 93432, 93433, 93441, 93442, 93444, 93445, 93449, 93453, 93454, 93455, 93458, 93460, 93461

Note: The CDI may issue supplemental bulletins adding more ZIP codes if the fire perimeter data changes.

Where to Direct Inquiries

If you have questions about how this moratorium affects your current policies or require assistance navigating these new compliance protections, please reach out to us directly:

• Phone: (951) 768-5945
• Email: hrishi_jayaraj@nexorasure.com