Calif. fire insurers agree to voluntary claim handling reforms

The insurers represent 90 percent of claims generated as a result of recent wildfires. Policy reforms include more timely payments and flexibility with deadlines

Insurance News

By

by Elise Linscott
 
Five California insurers have agreed to voluntary claim handling reforms, following the devastating Valley and Butte fires that have generated thousands of claims, state insurance commissioner Dave Jones announced last week.
 
“The Valley and Butte fires have devastated communities across Lake, Amador and Calaveras Counties,” said Sevag Sarkissian, a spokesperson for State Farm, which is one of the companies participating in the voluntary reforms. “Anything we can do to serve our customers in an efficient and thorough manner, within the policy contract, we will do. To that end, State Farm is working with our customers to assist them in their recovery.
 
“We have made contact with our impacted customers and are working with them closely to answer their questions, begin the claims process and move toward a day when they will have recovered from these unexpected tragedies,” Sarkissian said.
 
After destructive wildfires, policyholders often find many of the things the insurance company needs to process their claim are missing or were destroyed in the fire, such as home inventories and vehicle ownership papers. Under this agreement, policyholders may receive advance payment for up to four months of additional living expenses, 25 percent of policy limits for personal property, and expedite the process for debris removal-a first step in rebuilding.
 
In addition to the more than 5000 property claims, more than 1000 vehicles were damaged or destroyed in the fires. Insurers have also agreed to speed payment for damaged or destroyed vehicles and provide at least 30 days billing leniency for lost renewal notices or those who do not have the ability to have their mail forwarded.
 
The insurers participating in the policy reforms are: CSAA Insurance Group (AAA Northern California), Farmers Insurance Group (including Foremost), Hartford Fire & Casualty Group, State Farm Mutual Group, and United Services Automobile Association Group.

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