California has issued an emergency notice to all property and casualty (P&C) insurers doing business in the state, requesting they expedite claims handling to help wildfire survivors rebuild more quickly.
Insurance Commissioner Ricardo Lara has asked insurers to provide greater flexibility concerning deadlines and documentation for those affected by the fires.
Proposals include a minimum 4 month advance payment of Loss of Use, Fair Rental Value or Additional Living Expenses, and an advance payment of at least 25% of policy limits for personal property — without the completion of an inventory.
Commissioner Lara also called for a minimum 60-day billing grace period to allow for lost or destroyed renewal notices, expedited payment of vehicle damage claims under comprehensive loss coverage, and cooperation with consolidated debris removal efforts.
Additionally, insurers have been asked to accept any inventory form that contains substantially the same information as a company-specific form, and inventories that include groupings of personal property rather than individual listed items.
“I have met with many wildfire survivors since taking office, and they need immediate help to start the rebuilding process, not red tape and unnecessary paperwork that adds to their problems,” said Commissioner Lara.
“These expedited claims handling procedures will give policyholders the help they need, and I urge insurers to do the right thing for these survivors,” he added.
The Department of Insurance has issued similar notices after other devastating fires, including the Camp, Woolsey, and Hill fires in 2018. Almost all insurers
The notice has also been made in recognition of Governor Gavin Newsom’s declared states of emergencies related to the wildfires.
Last week, Commissioner Lara ordered the FAIR Plan — California’s insurer of last resort — to help homeowners find adequate coverage by offering a comprehensive policy in addition to its current dwelling fire-only coverage by June 1, 2020, and taking other steps to modernize its options.
