Wildfire survivors forced from their homes may be eligible to receive up-front reimbursement of their evacuation expenses from insurers, according to Consumer Watchdog executive director Carmen Balber. Balber advised individuals in evacuation areas, particularly those who have lost their homes, to promptly contact their insurance companies to request an advance on their policy limits.
To expedite the claims process, Balber recommended that residents obtain copies of their insurance policies, gather receipts, and meticulously document all interactions with their insurers. She emphasized the importance of refraining from clearing debris from their properties until an inspection has been conducted to ensure that insurers can accurately assess the extent of the damage.
Expressing concern over the financial repercussions of the wildfires on consumers, Balber highlighted various challenges faced by individuals, including being uninsured due to policy cancellations by insurance companies, difficulties in obtaining adequate insurance coverage, and the potential need to advocate for full insurance benefits.
In recent years, some homeowners residing in increasingly fire-prone regions of California have encountered obstacles in securing insurance or renewing existing policies. The California FAIR Plan has offered an insurance alternative for those unable to obtain private insurance, albeit with higher premiums and reduced coverage.
The California Department of Insurance recently introduced new regulations aimed at encouraging private insurers to underwrite policies in fire-prone areas of the state. However, Balber has criticized the efficacy of the new policy, citing concerns about potential rate increases rather than enhanced coverage.
Consumer Watchdog, a nonprofit and nonpartisan Consumer Advocacy Group focused on the insurance market in California, continues to monitor developments and advocate for consumer rights in the aftermath of wildfires and insurance challenges.
