the San Fernando Valley · Selling and buying at the same time

California’s wildfire non-renewal moratorium expired in January 2026, and every San Fernando Valley seller now needs to know their own policy’s status before they list.

The one-year protection tied to the Palisades and Eaton fire emergency declaration has run out. That does not mean your policy is cancelled, it means insurers can act on non-renewal again, and a buyer’s lender will ask about it.

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The answer

The direct answer

California’s insurance commissioner ordered a one-year moratorium on wildfire-area non-renewals after the January 2025 Palisades and Eaton fires. That protection expired in January 2026, and insurers in fire-history Valley ZIP codes can decline to renew again. Sell with a clear, current answer on your policy status, since a lender needs to see insurability before closing regardless of last year’s coverage.

What changes the answer

Do I have to disclose my home insurance status when selling in the San Fernando Valley?
What is the FAIR Plan?
Does the moratorium expiring mean my policy gets cancelled automatically?

Each one is answered further down this page, and any one can move the outcome on a specific file.

The local number: California’s one-year moratorium on wildfire-area home insurance non-renewals and cancellations, tied to the January 7, 2025 Palisades and Eaton fire emergency declaration, expired in January 2026. Its consumer protections for HOAs, condos and commercial policies extended separately under SB 547, effective January 1, 2026.
Rule and source: California Department of Insurance, Bulletin 2026-01, One Year Moratorium
Last verified: September 1, 2026

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Answered by Nick Nagy · 23 years · NMLS 314880 · CA DRE 01444600 · Mortgage financing through Loan Factory, 237 lenders · Run this answer against my numbers →

Part of the California Mortgage Answer Desk, and of the San Fernando Valley questions.

How it works

What actually expired, and what did not

California’s insurance commissioner issued a mandatory one-year moratorium on non-renewals and cancellations covering the fire perimeters and ZIP codes tied to the January 2025 Palisades and Eaton fires. That protection expired roughly a year after the emergency declaration, in January 2026. It did not extend to commercial policies, HOAs and condos until a separate law took effect January 1, 2026.

What this means for a Valley seller is straightforward: the blanket protection that existed for the past year is gone. Your insurer can now act on a non-renewal the way it could before the moratorium, if it chooses to. That is not the same as saying your policy has been cancelled. It means the earlier protection against that outcome no longer applies.

The detail that matters

Why this is now a seller disclosure and timing issue, not just an insurance issue

A buyer’s lender needs to confirm the property is insurable before funding the loan, and that requirement does not disappear just because you, the seller, currently have a policy in force. If your policy is up for renewal during your own listing period, or if you have already received a non-renewal notice, that is information a buyer’s financing timeline needs early, not after they are already in contract and their lender’s insurance underwriting flags it.

Getting ahead of this with a clear, current answer, your policy status, whether you have had any non-renewal notices, whether you are on a standard carrier or the FAIR Plan, protects your closing timeline more than it protects you from any disclosure obligation. Buyers and their lenders move faster with a straight answer than with an unknown.

How it works

What to have ready before you list

Know your renewal date relative to your expected closing timeline. If your policy is up for renewal while your home is under contract, that is worth flagging to your agent and to your buyer’s lender proactively, rather than letting it surface as a surprise mid-escrow.

If you have already moved to the FAIR Plan, California’s insurer of last resort, that is also worth being upfront about, since it changes what a buyer’s lender needs to review and can affect how quickly their financing clears. None of this needs to slow down your sale. It needs to be answered early instead of discovered late.

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Where this question came from

Someone asked this in public

California Fire Insurance Moratorium Ending
r/RealEstate, captured 2026-08-10 (LH1 demand sweep)

If nobody gave a straight answer in that thread, that is not the person missing something. The answer depends on a specific file and a specific address.

Who answers

Nick Nagy

23 years in California lending · NMLS 314880 · CA DRE 01444600 · Loan Factory, Inc.

Dual licensed, so the loan side and the real estate side of a move get looked at as one problem instead of two. Most of what goes wrong in a move is a timing problem wearing a financing costume, and it is cheaper to catch it before you write an offer than after.

Financing is placed through Loan Factory, Inc. Real estate work is under CA DRE 01444600. More about Nick.

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The desk behind the file

One file, 237 lenders competing for it, and a broker who has done this for 23 years.

Loan Factory, Inc. is the brokerage. These are its published figures.

20,907+Loan Factory Google reviews

5.0Loan Factory average rating

237Lenders available through Loan Factory

48States Loan Factory is licensed in

A retail bank has one guideline book. A broker shops the same file across the shelf and finds the lender whose box it already fits.

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Straight answers

Questions people here actually ask

The follow-on questions, answered in the order they get asked.

California Fire Insurance Moratorium Ending

California’s one-year moratorium on wildfire-area insurance non-renewals, ordered after the January 2025 Palisades and Eaton fire emergency declaration, expired in January 2026. Insurers in fire-history ZIP codes can now decline to renew policies again. Sellers should confirm their own policy’s renewal date and status before listing, since a buyer’s lender will need to verify insurability before closing.

Do I have to disclose my home insurance status when selling in the San Fernando Valley?

A buyer’s lender will independently verify insurability before funding, so a current, accurate answer on your policy status protects your closing timeline. If you have received a non-renewal notice or moved to the FAIR Plan, raising that early avoids a mid-escrow surprise.

What is the FAIR Plan?

California’s insurer of last resort for properties that cannot get a standard policy, often due to wildfire risk. Being on the FAIR Plan is worth disclosing proactively since it changes what a buyer’s lender reviews during underwriting.

Does the moratorium expiring mean my policy gets cancelled automatically?

No. It means the blanket one-year protection against non-renewal has ended, not that any specific action has been taken on your policy. Check your own renewal date and any notices you may have received rather than assuming either outcome.

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