California Insurance Claim Guidelines for Dealing With Insurance and Wildfire Disaster?

Homeowners,

Insurance often becomes top of mind during crises like these, and understanding your rights and resources can make all the difference. Here is essential information for you at this time. Please just use this as a guide when deciding about your claim.

Preparing and Filing an Insurance Claim

Items to Have Ready:

    Home Policy Information: Include your policy number and the insurer’s contact details. Many carriers also allow online filing.

    List Damaged or Lost Items: Document personal items lost or damaged. Photos, videos, descriptions, and estimated replacement costs are helpful. Receipts and detailed records can expedite the process but aren’t always required.

    Temporary Living Expenses: Track all expenses like hotel stays, meals, and transportation incurred while displaced.

    Fire Department Report: Request an official report confirming the fire’s cause and scope.

    Evacuation Notices: Retain any official notices that verify your evacuation.

    Notes of Conversations: Record every interaction with your insurance provider, including dates, representative names, and discussion summaries.

    Organizing Your Claim: Create a physical or digital folder for all claim-related documents, receipts, and communications.

Caution: Public adjusters will likely contact you, offering to handle your claim. While they can be helpful in complex cases, they take a percentage of your payout. Take a few days to assess whether their services are necessary before signing anything.

Key California Insurance Claim Rules

    In California, insurers are legally bound to specific practices, especially during declared emergencies. These rules provide leverage to ensure fair and prompt claim resolution.

Temporary Living Expenses (ALE):

    Advance Payments: Insurers must provide at least four months of ALE benefits for total losses in declared emergencies. ([CA Ins. Code 2061(a)(1)])

    Extended Coverage: If civil authority restricts access, ALE is covered for at least two weeks, with extensions as needed. ([CA Ins. Code 2060(c)])

Rebuilding or Relocating

 

    Use full replacement benefits for rebuilding at the same or a new location or buying a replacement home. Insurers cannot deduct land value from payments. ([CA Ins. Code 2051.5(c)])

 

Personal Property Coverage:

    Insurers must offer at least 30% of your Dwelling limit for personal property in total losses. ([CA Ins. Code 10103.7])

    Inventory Requirements: Accept simplified itemization like “15 books” rather than detailed lists. ([CA Ins. Code 2061(a)(2)(3)])

 

Debris Removal:

    Insurers should coordinate and fund debris removal efforts when included in a group program.

Claim Handling Timelines

 

    Acknowledgment of Claim: Within 15 days of notice. ([10 CCR 2695.5(e)])

    Investigation: Begin within 15 days of claim receipt.

    Communication: Reply to inquiries within 15 days. ([10 CCR 2695.5(b)])

    Policy Copy Requests: Must be fulfilled within 30 days. ([Cal Ins. Code 2071; 2084])

    Claim Decision: Insurers must accept or reject claims within 40 days of proof of claim receipt. ([10 CCR 2695.7(b)])

    Payments: Claims must be paid within 30 days of acceptance.

    If you encounter multiple adjusters, request a primary contact to simplify communication. ([Cal Ins. Code 14047]).

Homeowners may be approached by people to handle your claim, please be cautious in who you choose to deal with.

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Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996