AB 2038 authored by Assemblymember John Harabedian extends protections against insurance nonrenewals after a wildfire or other major disaster
(SACRAMENTO, CA) – A new California law will give wildfire survivors across the state more protection from losing their homeowners insurance while they recover from a disaster.
AB 2038 by Assemblymember John Harabedian (D-Pasadena), jointly authored by Assemblymember Rick Zbur (D-Hollywood), was signed into law today. The law extends California’s existing protections against insurance cancellations and nonrenewals following a major disaster.
Families can spend years dealing with insurance claims, temporary housing, debris removal, permits and rebuilding. Losing their insurance during that process can add another major problem to an already difficult recovery. AB 2038 gives homeowners more time before their insurer can refuse to renew their policy because of the disaster.
Under the new law, the existing one year protection for homes located in or adjacent to a fire perimeter ZIP code is extended to two years after the declaration of a state of emergency. For homeowners whose primary residence is completely destroyed in a disaster, the law extends the existing 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 across California. They are not limited to the Eaton or Palisades fires.
“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,” said Assemblymember Harabedian. “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 the recovery process has changed and that rebuilding a home can take years.
AB 2038 is part of Harabedian’s broader wildfire recovery package, which also includes new 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 the experiences of survivors navigating recovery.
AB 2038 takes effect January 1, 2027.
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Assemblymember John Harabedian represents the 41st District composed of the cities of La Cañada Flintridge, Pasadena, Altadena, Sierra Madre, Monrovia, Bradbury, San Dimas, La Verne, Claremont, Upland, Rancho Cucamonga, Oak Hills, Piñon Hills and Phelan.
