California’s insurance commissioner, Ricardo Lara, has urged insurance companies to expedite payments to homeowners affected by the devastating fires that swept through Southern California last month. In a compassionate move, Lara’s office has requested that insurers provide maximum compensation for lost personal property without the usual requirement for policyholders to submit a detailed inventory of their belongings.
Lara emphasized the urgency of this request, stating that it is unreasonable to expect wildfire survivors, who have already endured significant loss, to account for every item they owned. "They need to focus on the larger task of rebuilding their lives," he remarked in a statement. Insurers are expected to report back by February 28 on whether they will comply with this directive.
While some homeowners have already received full payments for their lost possessions, others are still waiting for any assistance. Many policyholders have struggled to fulfill the inventory requirement, as they face the daunting challenges of finding temporary housing, managing property cleanups, and planning for future rebuilding efforts.
According to California law, insurance companies are obligated to make initial payments for personal property without requiring a complete inventory. This initial payment can be as high as $250,000 and must be at least 30% of the homeowner’s dwelling limit. Following this advance, policyholders can claim the full value of their lost items, contingent upon providing appropriate documentation.
Homeowners in Altadena who suffered total losses in the Eaton fire have expressed their gratitude for Lara’s initiative. Daniel Morales, a retired business consultant, articulated the difficulty of valuing his extensive collection of personal items, which includes over 2,000 books and unique religious artifacts. His insurer has indicated they will pay him 80% of his coverage limit without requiring documentation, with the remaining amount contingent on proof of loss.
Another Altadena resident, an engineer who lost a substantial amount of valuable equipment, reported that he has yet to receive any payments from his insurer. He praised the push for quicker payments, highlighting the immense stress that comes with dealing with multiple insurance claims.
Jennifer Gray Thompson, a recovery expert, commended Lara’s efforts, noting that the process of itemizing lost possessions can significantly delay recovery for many families. She advised victims to create video documentation of their belongings to aid in the claims process, suggesting they record everything from drawers to outdoor items, as recalling every single item can be nearly impossible.
As the state continues to grapple with the aftermath of these fires, the focus remains on supporting affected homeowners in their recovery efforts, ensuring they receive the financial assistance they need to rebuild their lives.