California Insurance Commissioner Ricardo Lara wants insurers to quickly process the claims from the recent fires in Northern and Southern California. He said they face a long, hard road to rebuild their lives.
Lara has issued emergency orders to make sure they get help immediately.
“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,” Lara said. “These expedited claims handling procedures will give policyholders the help they need, and I urge insurers to do the right thing for these survivors.”
Lara wants insurance companies to pay claims quickly and to be more flexible and that flexibility includes:
• Minimum four-month advance payment of Loss of Use, Fair Rental Value or Additional Living Expenses
• Minimum 60-day billing grace period to allow for lost or destroyed renewal notices
• Advance payment of at least 25% of policy limits for personal property — without the completion of an inventory
• Accepting any inventory form that contains substantially the same information as a company-specific form
• Accepting an inventory that includes groupings of personal property, such as clothing, shoes, books, or food items rather than listing individual item
• Expediting payment of vehicle damage claims covered under comprehensive loss coverage
• Cooperating with consolidated debris removal efforts coordinated through city, county, and state agencies, unless the insurer can provide more rapid debris removal outside of this effort
Source link: California Department of Insurance