Coverage Counsel Is In
A weekly podcast for insurance professionals on interesting coverage issues.
Coverage Counsel Is In
Episode 32. LA Wildfire Insurance Tips
This week, Spencer Sallander fills in for Bob to discuss a topic that is literally close to home for him: The LA Wildfires.
All of us at GPSL have been devastated to see the destruction caused by the fires in Los Angeles. Our hearts are with our friends, family, and colleagues who have lost so much so suddenly.
In that vein, we wanted to release a quick episode outlining five steps homeowners should take with their insurance if they’ve lost their home in the fires.
We sincerely hope this information helps those who are feeling overwhelmed. We will continue to distribute resources as we have them. If you need additional help, contact a reputable attorney in your area.
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This is Spencer Sallander filling in for Bob, who is unfortunately sick this week.
Since I am based out of Los Angeles, a few miles south of the devastating Pacific Palisades and Eaton fires, it felt appropriate that those be the topic of this brief episode of Coverage Counsel Is In.
As I’m recording this podcast, local fire authorities are estimating that several people have been injured or killed, and more than ten thousand structures- houses, schools, churches, grocery stores, restaurants, and landmarks- have been damaged or destroyed.
Multiple news organizations have speculated on how these losses are going to impact the homeowners’ insurance crisis that has been gripping California.
Insurance will be crucial for homeowners to rebuild, but the kind of enormous losses caused by these fires are what insurers have been trying to avoid in recent years. Available data shows that last year State Farm, the largest home insurer in California, cancelled 16,026 policies in Pacific Palisades.
And State Farm is not the only insurer to reduce its exposure to fire losses. Complete data is not currently available, but anecdotally, California homeowners have been struggling to find coverage, and California’s insurer of last resort, the Fair Plan, has been increasing its overall policy count.
There are strict rules for cancelling or non-renewing homeowners policies in California, and no doubt questions along those lines will arise for homeowners who lost their policies. In this podcast, however, I want to list five things homeowners suffering a loss should do.
One: Ask your carrier or agent for a complete copy of your homeowners insurance policy, including the declarations page. The insurer will have 30 days to provide that information free of charge.
Two: Track the additional living expenses you incur, so that your household can maintain its normal standard of living. ALE coverage will most likely be subject to a sub-limit, so you should not be extravagant, and you should carefully manage it.
Three: Create a claim diary, and take notes of all conversations with your insurance representatives. Send confirming emails when possible.
Four: Ask questions. If an adjuster says something is not covered, ask them to point out the policy language they are relying on.
Five: Do rush into any decisions about contractors, lawyers, or public adjusters. Some might tell you how they can get a better settlement, more money, or faster claims service from your insurer, but they do so for a fee, and that fee might exceed any benefit. Wait for your insurer, who is bound to adjust your claim in good faith. If you feel you are being cheated, then consult a reputable lawyer.
Our hearts go out to the victims of the Southern California Fires. In coming episodes of CCII, we’ll monitor the situation and provide additional tips for homeowners and business owners as they attempt to rebuild and regain their sense of normalcy.
