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News & Press: Current News

CA Moratorium on Dropping Insurance in High-Risk Areas

Monday, December 16, 2019   (1 Comments)
Posted by: Sharon Leach
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Losing insurance coverage? Maybe not so fast.

According to an article in the New York Times this week, the State of California has passed a moratorium on dropping customers from fire insurance in areas where recent wildfires have been. This may or may not impact cabin owners. Insurers continue to assess high risk and non-renew policies affecting cabin owners in the Recreation Residence Program.  The article specifies that the moratorium on dropping insurance is only for one year while the state studies the situation.

The article goes on to describe a worsening situation as catastrophic losses from climate impact mount while the insurance industry's has show an inability to estimate such climate-related disaster risk accurately.

"The state [California] has become a case study of how an industry that is central to dealing with climate change has instead been hobbled by it — and how regulators, in their efforts to protect consumers, could risk making the problem worse."

The State appears to be studying this regulatory issue, as it grapples with ongoing catastrophes.

Note from NFH: Many cabin owners have lost insurance coverage due to the carriers pulling out of the state or zip codes considered high risk. If the moratorium does not protect your insurance, NFH has an insurance program for Recreation Residence permit-holders. Click here to learn more.


Jim & Kristi Byer says...
Posted Thursday, December 19, 2019
Insurance coverage has been a big issue for us. We are new cabin owners and recently rebuilt a Forest Service cabin in the Mammoth area in CA. A few weeks ago we got homeowners insurance for our cabin which is a huge relief! Last year we attended the 2019 NFH Conference in San Diego and went to a breakout session on "Insurance and the Cabin Program" where we met a representative from Assurance Risk Managers, Inc. (ARM) We contacted him this fall and as NFH Members we were able to work with him to get a policy. I would encourage anyone looking for cabin insurance to go to the NFH Resources tab and click on Cabin Insurance.