As reported by the LA Times, the brush fire raging in the rugged mountains of the Santa Clarita Valley grew by more than 10,000 acres on Sunday, scorching an estimated 37,000 acres by the late evening as the blaze continued to threaten hundreds of homes while firefighters battled to keep flames from spreading, authorities said.
Fueled by 20-mph winds and hillsides carpeted with tinder-like chaparral, the wildfire was burning in hills toward Acton by late Sunday afternoon. Hundreds of residents were ordered to evacuate.
During a catastrophic event like this it is quite common for insurance companies to issue a moratorium on new business. In an attempt by insurance companies to reduce their losses and prevent fraud, our agency frequently receives notices like the one below.
The notice states that because of the current wildfire in progress we are temporarily unable to issue any insurance policy with property damage coverage. This includes home, auto, and business insurance polices to specific regions in the Santa Clara area.
Effective immediately, and until further notice, insurance company will not bind any new or endorsed comprehensive or collision business in the state of California in the above Zip codes due to the Sand Wildfire. This restriction applies to all property coverages (personal & commercial) and auto physical damage coverage. Please note that this suspension also applies to changes in physical damage coverage or deductibles for existing insureds.
We feel it is important for our clients and other property owners to understand how insurance companies in California operate. Notices like these serve as a reminder to consumers that it is important to have the proper coverage before the worst happens.
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