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Commissioner Lara urges insurance companies to cover wildfire property losses without requiring a home inventory

/ Categories: News, DOI, Catastrophes
Commissioner Lara urges insurance companies to cover wildfire property losses without requiring a home inventory

California’s Commissioner 10-2-2020 Press Release

From the Press Release.
 — In response to California’s latest destructive fires, Insurance Commissioner Ricardo Lara is requesting that insurance companies help wildfire survivors who are overwhelmed with the task of navigating the claims process by providing up to 100 percent of personal property coverage limits without a detailed inventory to those who suffered a total loss of their home, similar to previous identical requests in past years.

“Wildfire survivors who are still sifting through the ruins of their home should not have to face an exhaustive inventory in order to start the recovery process,” said Insurance Commissioner Ricardo Lara. “That is why I am asking insurance companies to do their part for their policyholders by providing coverage without the burdensome requirement of a detailed home inventory in order to have their claims paid.”

The recent California wildfires have destroyed entire neighborhoods and devastated several communities. The California Department of Insurance has received numerous complaints from policyholders about the monumental task of identifying every item of personal property they may have lost in the recent wildfires to collect the replacement cost of such items.  

“When the entire contents of an insured home are destroyed in a wildfire, it's logical that the owner is entitled to the full amount of their contents insurance,” said Amy Bach, executive director of United Policyholders, which advocates for the rights of wildfire survivors. “We sincerely hope insurers comply with the Commissioner's request.”

This week, Governor Gavin Newsom signed Senate Bill 872 (Dodd) and Assembly Bill 3012 (Wood) that provide, among other things, protections for policyholders who suffered a covered total loss resulting from a wildfire during a state of emergency. Even though those new laws are not yet in effect, Commissioner Lara requests that residential property insurance companies offer a payment under the contents (personal property) coverage of no less than 30% of the policy limit applicable to the covered dwelling structure, up to a maximum of $250,000, consistent with requirements in chaptered AB 3012.

(Image is from the Photo Gallery and not of the current fires.)

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Listed below are some links to other blog post and articles on other sites.

Dimechimes ClaimSmentor Adjuster Information Blog 
 Organization Chart for the Claims Handling Blame Game- A Humorous Graph -A Serious Look at Claim Bad Faith Issues
 On the page the above link takes you to you will find links to some of her other articles at the end of the above article.

Article written by John Postava
On the Ryze Claim Solutions webite

You can find additional post from John and Dimechimes in the CADO forums, they have made many post over the years contributing to the community by sharing their knowledge and experiance.

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