Although evacuations orders are being lifted, some of the residents of heavily damaged (or destroyed) homes are having to deal with homeowner insurance nightmares. That’s because insurance companies often impose timelines, but without the ability to prove exactly THE extent of the damage done, because some people can’t even get in to the burned areas yet, some homeowners can’t file the necessary forms on-time. In recent cases 1 architect reported that a client of hers was encouraged to take a partial payment from an insurance company….because she’d need it soon…..but that made the company’s timeline end before all the repairs were done, and the associated extra costs were then not covered by the insurance company. Because of the known geology and soil issues already existent in the San Lorenzo Valley, people are encouraged not to “start” the insurance timeline until they are actually ready.
Existing state insurance codes, including provisions under 675, prohibit an insurer from canceling (or refusing to renew) a residential property insurance policy for property located in any ZIP code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. The prohibition applies to all residential property insurance policies in effect at the time of the declared emergency. That code applies to undamaged properties and partial losses.
The California Department of Insurance has resources available for wildfire survivors. Those seeking assistance should contact the department at 800-927-4357 or at insurance.ca.gov.
