The Southern California wildfires, including the more recent Hughes fire that began January 22, are all over
State government, the insurance industry and advocacy groups have announced more efforts to help those affected.
State launches claims tracking system
The California Department of Insurance (CDI) has created a public consumer claims
"With so much misinformation and speculation about our insurance market after the Southern California wildfires, it is critical for the public to track claims and monitor payouts," Lara stated in a press release. "All eyes are on the insurance companies, and so are mine. I want consumers to know that we are closely monitoring the entire claims process to ensure they are protected. I expect insurance companies, including the FAIR Plan, to continue providing advance payments that are essential for getting survivors back on their feet as quickly as possible."
More than $4.2 billion has already been paid out to survivors of the recent wildfires, according to Lara. This amount will continue to rise as more claims are made for rebuilding as well as debris removal.
Advance payments for affected policyholders
Homeowners insurance policyholders who had a total loss in the wildfires are entitled to advance payments on claims, under California law enacted in 2018.
Some insurers and adjusters are not following this consumer protection rule, according to Lara. In response, on January 23,
The types of advance payments available are "Payment of Contents Without Inventory," up to $250,000, and Additional Living Expense, covering no less than four months of expenses, which is also available to FAIR Plan policyholders, according to Lara and the CDI.
State laws also provide protections for those with a total loss, including the ability to combine structure coverages to rebuild, and two automatic renewals of policies for no less than 24 months.
United Policyholders staff and volunteers offer help at disaster centers
The United Policyholders consumer group has staff and wildfire survivor volunteers working at CDI's
"Through their kindness and our expertise, we are giving people hope and trustworthy guidance that draws on three decades of helping improve wildfire recovery and the wisdom of those who are living proof that one can rebuild and recover despite unfathomable loss and grief," stated a January 28 press release from the group.
United Policyholders also has a
Insurance trade association cautions about public adjusters
The American Property Casualty Insurance Association (APCIA) cautioned homeowners affected by the wildfires to be careful about using public adjusters.
An APCIA press release noted these points. Settlement checks for those using public adjusters – who are subject to CDI oversight – will require signatures from both the homeowner and the adjuster. Public adjusters' fees are paid by policyholders and often are a percentage of a settled claim. Using a public adjuster could delay settlement of claims.
Claimants should:
- Check the adjuster's license with the CDI License Bureau at 1-800-967-9331.
- Check contractors' licenses with the Contractors State License Board (CSLB) at 1-800-321-2752.
- Check the Better Business Bureau's complaint and
scam tracker on theirwebsite , which also has additional resources for wildfire survivors.
Commissioner Lara has deployed the CDI Disaster Assistance Response Team (DART) to wildfire-affected areas to protect survivors from scams and fraud.
