Wildfire Insurance Claims: Adjusters Must Comply With Calif. Laws

NORTH BAY, CA — The California Department of Insurance on Monday notified insurers, licensed public adjusters and admitted carriers in and outside of California that they must comply with California regulations if they represent the state's wildfire victims' insurance claims. Insurance Commissioner Dave Jones declared an emergency situation on Oct. 13 that allowed California's insurance companies to use out-of-state adjusters to handle the large volume of fire claims.

Since then, the Department of Insurance has received feedback from wildfire survivors, public officials and others that some representations made by insurance adjusters conflict with the California Unfair Practices
Act, the Fair Claims Settlement Practices Regulations, and other laws, Jones said.

Some of the incorrect statements by insurers include incorrect timeframes to collect full replacement of rebuilding costs, where fire victims may rebuild, and when additional living expense benefits will expire,
according to the Department of Insurance.

Policyholders were told they have between six and 12 months to collect full replacement costs to rebuild, but in a state of emergency because of the fires, policyholders have no less than 24 months to collect full replacement costs to rebuild under California law.

Policyholders also were told that if they decide not to rebuild in the same location, they could not receive full placement benefits. Under California law, policyholders may choose to rebuild in the same location, in a new location or purchase an already built home in another location.

Policyholders also were told the additional living expense benefit would expire in 12 months, but in a state of emergency, they have up to 24 months under California law.

"Helping residents start the claims process in the face of so many losses and claims necessitated extraordinary actions," Jones said in a statement.

"While getting claims settled is a priority, it must be done according to the laws in place to protect policyholders through a difficult process. I issued this notice to remind insurers that claims adjusters must
be properly trained and process all claims according to California law," Jones said.

Policyholders who need assistance or have questions about their policy or claim should contact the Department of Insurance hotline at 800-927-4357.

Insurance claims adjusters with questions can call the Department of Insurance licensing hotline at 800-967-9331.

By Bay City News Service

Photo via U.S. Environmental Protection Agency