California’s insurance commissioner has urged insurance companies to expedite payments for personal property lost in the recent Southern California fires, alleviating the burden on homeowners who have already suffered devastating losses. Commissioner Ricardo Lara’s office is advocating for insurers to make maximum payments without requiring policyholders to compile exhaustive inventories of their lost belongings.
In a statement issued last Thursday, Lara emphasized the emotional toll on wildfire survivors, stating, “It is inhumane to require wildfire survivors who have lost everything to list every item of personal property in order to receive the full replacement cost under their policies. They need to focus on the larger task of rebuilding their lives.” Insurers have been asked to report back by February 28 on their compliance with this initiative.
The call for action comes in the wake of the Palisades and Eaton fires, which ravaged many homes last month. While some homeowners have already received maximum compensation for their losses, others report receiving no payments at all. Many policyholders are struggling to fulfill the detailed inventory requests from their insurers, complicating their recovery as they deal with the aftermath of the fires, including finding temporary housing and managing property cleanups.
State law mandates that insurance companies provide initial payments for personal property losses without requiring a completed inventory. This initial payment can reach up to $250,000 and must be no less than 30% of the dwelling policy limit. Following this advance, policyholders are entitled to the full value of their possessions, contingent on providing documentation of their losses.
Homeowners affected by the Eaton fire have expressed support for Lara’s initiative, highlighting the daunting task of itemizing their losses. Daniel Morales, a retiree and small business consultant, shared his struggle to assess the value of his extensive collection of over 2,000 books and various keepsakes. He stated, “How do you put a value on those things? It’s a judgment call. So much of it is intangible.” Morales noted that his insurer has offered to pay 80% of his coverage limit without documentation, with the remainder contingent on proof of loss.
Another homeowner, an engineer who lost a significant collection of ham radio equipment and guitars, has yet to receive any payment or assurance from his insurance provider. He praised the push for streamlined payments, expressing the overwhelming stress he faces while dealing with multiple insurance claims.
Jennifer Gray Thompson, a post-fire recovery expert, commended Lara’s efforts to facilitate quicker insurance payouts. She pointed out that the itemization process can delay recovery and re-traumatize families. Thompson advised victims to document their possessions through video recordings, suggesting they capture the contents of drawers, closets, and other areas of their homes to aid in the claims process.
As the state and its residents grapple with the aftermath of these devastating fires, the insurance commissioner’s call for compassion and efficiency in processing claims offers a glimmer of hope for those striving to rebuild their lives.