
The Devastation in California
Our hearts go out to the thousands displaced by the Eaton and Palisades wildfires which to this point have destroyed more than 10,600 structures, damaged more than 1400 and killed at least 27 people. As an article in USA Today points out, these fires are part of a larger trend that has seen the number of acres of land affected by wildfires double over the last ten years. This trend is driven not only by climate change but by a proliferation of dry ground cover, increasing development in hard to reach areas, and landscaping and housing features that promote the spread of fires.
However, the important thing is that disasters like this can happen to any of us and a disaster like this concerns all of us. We must help those in need and then learn the lessons to lessen future destruction and heartache. I have represented many clients who have lost their homes and have experienced their heartbreak at losing their dream homes, the homes in which they raised their children, their safe place, their refuge, and their sanctuary. This initial disorienting loss is followed by months and sometimes years of frustration as they seek to rebuild their lives, especially if the insurance company does not want to make them whole.
Here are a couple of good articles about charitable giving relating to this disaster, one an article by NBC and another on Vox.com. In addition, I support United Policyholders who helps homeowners and business owners with the insurance process and generally advocates for policyholders. Here is a link to their website.
What to Do if Your Home is Destroyed by a Fire, Wildfire or other Natural Disaster
In the aftermath of these wildfires, there are a number of great resources you can turn to for guidance on putting your life back together. United Policyholders has a page devoted to this topic as well as Zoom presentations. In addition, the Beverly Hills Bar Association has put together some really good materials. In addition, here is another list from California policyholder attorney Neil Anapol.
Note: if you are affected by fires or wildfires outside of California some of the protections outlined may not apply to you. For example, California requires insurers to advance four months of living expenses and thirty percent of personal property coverage up to $250,000. Other states may not have these protections. However, it is important that you obtain and review your declarations page and full policy booklet so that you know the benefits your policy provides.
What State Regulators Can Do
The California Wildfires provide an example of what insurance regulators can do to help policyholders in times of crisis. For instance, California Insurance Commissioner Ricardo Lara issued an order calling on insurers to halt all insurance cancellations that had been planned in the 90 days preceding the wildfires and to pause them for at least six months. In addition, California law prevents insurers from canceling policies to homes destroyed as a result of a natural disaster for at least two years and provides for a 90 day grace period for premium payments during the disaster period.
In Texas, Texas law prevents insurers from canceling policies due to natural disasters and prevents insurers from relying on claims relating to weather related events to increase premiums. See the Texas Consumer Bill of Rights for Homeowners, Dwelling and Renters Insurance.
We need our regulators and lawmakers to stand strong in the face of insurer pressure during these disasters. Insurance companies can react to these disasters by cutting coverage, pulling out of affected areas, and raising rates. See my recent blogpost on insurer scarcity mindset. And while, insurers do have to make a profit in order to stay in business, insurers have already been pricing these disasters into their premiums and there are other solutions.
What We and Our Communities Can Do
So what can we do in our communities to help prevent serious fire claims and recover better? In a previous post, I mentioned a groundbreaking Alabama Department of Insurance program that provided monetary incentives for homeowners to make improvements to their roofs and other structures to withstand wind damage from hurricanes and other windstorms.
Similar standards have been developed to help prevent homes and communities from being damaged by wildfires. These standards include installing Class A fire resistant roofs, using fire resistant materials like concrete and stucco, and clearing vegetation free zones around homes. The Guardian reports on homes that followed these guidelines being spared amidst the devastation in part by following these guidelines. Programs to incentivize the adoption of these fire standards can help protect our homes and keep insurance available and affordable.
Finally, in the face of any natural disaster, don’t put up with bad treatment by your insurance company. Fight back if they resist paying what is owed under your policy. You have the power to fight back. File a complaint with your department of insurance, ask to speak with a manager, submit your own estimates, contact your state lawmakers, and contact a public adjuster (unfortunately these are not allowed in Alabama and Wisconsin at this time) or policyholders attorney (like yours truly). You paid your premiums: make sure that you insist on your policy benefits. While insurance companies have powerful lobbies, if enough policyholders raise their voices in times of need, we will be heard. Please contact us if you have any questions or if we can help you with your serious insurance claim.