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RICARDO LARA
CALIFORNIA INSURANCE COMMISSIONER
NOTICE
TO: All Admitted and Non-Admitted Residential Property Insurance
Companies Handling Consumer Claims Resulting from Recent
Southern California Wildfires
FROM: Insurance Commissioner Ricardo Lara
DATE: February 14, 2025
RE: Additional Living Expense Coverage When Homes are
Uninhabitable as a Result of 2025 Los Angeles Wildfires
As Insurance Commissioner, my top priority is ensuring that wildfire survivors affected
by the devastating Palisades, Eaton, and other windstorm-created fires in the Southern
California region receive the insurance benefits they are entitled to – and that they
receive them as soon as possible. This also includes consumers having on-going
insurance coverage when they need it the most, including Additional Living Expenses
coverage (also known as Loss of Use and Fair Rental Value), especially when it
impacts their health and safety.
According to the Los Angeles County Department of Public Health (County Public
Health), the fire debris and ash that resulted from these fires may contain asbestos,
heavy metals, chemicals, and other hazardous substances. The fire debris and ash also
pose significant threats to public health through inhalation of dust particles and
contamination of drinking water. The improper handling of fire debris and ash can
expose residents to toxic materials and can spread hazardous substances throughout
the community.
On January 10, 2025, the Los Angeles County Health Officer declared a local health
emergency for Los Angeles County, citing hazardous conditions including, but not
limited to, burned or heat-damaged hazardous materials, fire debris, and ash within the
Palisades and Eaton Fires burn areas.
On January 15, 2025, the Los Angeles County Health Officer issued an Order that
prohibits the clean up and removal of fire debris until hazardous materials inspections
CALIFORNIA DEPARTMENT OF INSURANCE
PROTECT • PREVENT • PRESERVE
300 Capitol Mall, 17th Floor
Sacramento, California 95814
(916) 492-3500

are conducted, citing the potential for widespread toxic exposures and threats to public
health. The Order also noted that exposure to these hazardous substances may lead to
acute and chronic health effects and may cause long-term public health impacts.
County Public Health also advised that, if Phase 1 and 2 of the fire debris removal and
cleanup have not been completed, the area remains hazardous due to unstable
structures, sharp metal, and ash with potentially toxic substances. County Public Health
further explained that fire debris, soot, and ash contain harmful substances like dioxins,
polycyclic aromatic hydrocarbons, and heavy metals that can lead to a range of short-
term and long-term medical conditions.
In addition, “Do Not Drink Notices” are still in effect in some areas impacted by these
fires. I also understand that power is not completely restored in some locations.
Most recently, on February 11, 2025, County Public Health further refined its prior
advisories with a stronger Public Health Advisory to residents near the Palisades Fire
and Eaton Fire burn areas. This new advisory reminds residents about the dangers
associated with fire debris for individuals residing within 250 yards of a burned structure
or parcel within or near the Palisades and Eaton burn areas. This advisory stated that
residents in these areas may face an increased risk of exposure to hazardous
substances from ash, soot, and fire debris before the completion of Phase 1 (hazardous
materials removal) and Phase 2 (fire debris removal). Exposure to these materials may
lead to physical health symptoms and may pose long-term health impacts.
County Public Health also noted that fire debris from burned structures can contain a
variety of harmful substances, including:
• Asbestos from older building materials
• Heavy metals like lead
• Hazardous chemicals from household products
• Fine particulate matter created by the fire
Strong winds and weather fluctuations may increase both the exposure risk and the
affected distance.
In response to the Camp Fire in Paradise in 2018, where power, water, and sewer
services were down which rendered many homes uninhabitable, I was proud to sponsor
SB 872 (Dodd, Chapter 261, Statutes of 2020) in 2020 that expanded “Additional Living
Expenses” to situations where a home is uninhabitable due to a covered peril, such as a
wildfire.
California Insurance Code section 2060[b][2] states in pertinent part:
“A policy that provides coverage for additional living expenses subject to this
subdivision shall not limit the policyholder’s right to recovery if the insured home
is rendered uninhabitable by a covered peril. However, an insurer may, in lieu of
making living expense payments required by this subdivision, provide a
reasonable alternative remedy that addresses the property condition that
precludes reasonable habitation of the insured premises...”
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Whether a residence is uninhabitable is not limited to situations where power, water, or
sewer systems are disrupted. A residence may be deemed uninhabitable due to health
and safety reasons, such as those described above by County Public Health.
My Department is directly hearing from policyholders and local elected leaders, among
other sources, that some insurance companies are advising certain claimants that their
Additional Living Expenses coverage (also known as “Loss of Use” and “Fair Rental
Value”) is being terminated. As a result of the conditions described above, including the
ongoing risks associated with the hazardous waste and upcoming Los Angeles County
General Wildfire Debris Removal Program, this Notice is advising all admitted and non-
admitted insurance companies of their requirement to exercise due diligence in
determining whether a home is habitable or uninhabitable. The fact that an area is now
accessible does not automatically mean the residences in those areas are habitable,
especially given the on-going health and safety reasons as those described above by
County Public Health.
If a neighborhood or specific home is deemed uninhabitable, I expect all insurance
companies to continue providing Additional Living Expenses coverage until the home is
deemed habitable, subject to applicable statutory timeframes and any policy limits that
may exist. Further, as long as the County’s Public Health Advisory remains in effect,
policyholders in the impacted areas should continue to receive Additional Living
Expenses benefits unless the policyholder chooses to inhabit their residence.
Any insurance company with questions about this Notice, please contact:
Janet An, Attorney
Consumer Law Unit
Janet.An@insurance.ca.gov
If a policyholder has questions on their wildfire claim, please contact your insurance
company or adjuster directly. If there are still questions or concerns after contacting the
insurance company, then please contact my Department directly by calling our toll free
Hotline at (800) 927 4357 or visit us online at www.insurance.ca.gov.
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