California banned insurers from canceling or not renewing residential property policies in the Los Angeles neighborhoods that were affected by the blazes that destroyed swaths of the city this week

California has implemented a one-year ban on insurers canceling or refusing to renew residential property policies in areas affected by the devastating wildfires that swept through Los Angeles this week.

State Insurance Commissioner Ricardo Lara announced the mandatory moratorium, which applies to properties in neighborhoods or adjacent ZIP codes impacted by the Palisades and Eaton fires, regardless of whether residents experienced direct losses. The order was issued following Governor Gavin Newsom’s Jan. 7 state of emergency declaration, according to a statement released late Thursday.

“Our top priority is protecting Californians during this crisis and helping them recover,” Lara said in the statement. The moratorium aims to prevent residents from facing the additional burden of securing new insurance policies during such a traumatic event.

The policy safeguards are in effect for all residential property policies active as of Jan. 7. The California Department of Insurance may extend the protection to additional ZIP codes if wildfires spread further.

The fires, which remain largely uncontrolled as of Friday morning, have claimed at least 10 lives, burned more than 29,000 acres, and caused extensive damage in areas including Pacific Palisades and Pasadena.

AccuWeather Inc. estimates total economic losses from the disaster—factoring in uninsured damage, lost wages, and supply chain disruptions—could reach between $135 billion and $150 billion. Meanwhile, JPMorgan Chase & Co. analysts predict that insurers may face a bill exceeding $20 billion, with the figure likely to climb as the full scope of destruction becomes clear.