Sonoma Residents Forced To Evacuate As Fires Rage
As firefighters battle fires in Northern California, the state Department of Insurance through press releases is telling residents ordered to evacuate due to the fire that may have homeowner or renter insurance coverage to help with evacuation and relocation costs, even if their homes are not damaged or destroyed, and in many cases no deductible is required. The CDI public notice went out yesterday after the entire community of Geyserville was placed under evacuation order.
“Additional living expense coverage can help ease the financial and emotional toll an evacuation has on affected residents,” said California Insurance Commissioner Ricardo Lara. “It is crucial that residents are aware of all the resources available to them. I encourage evacuees to contact their insurance agent or the Department of Insurance for assistance."
Many homeowners are unaware they may have insurance coverage under their homeowner and renter policies to help them with evacuation and recovery expenses under additional living expense coverage, known as ALE. ALE coverage typically includes food and housing costs, furniture rental, relocation and storage, and extra transportation expenses.
The department is urging evacuees to contact their insurer to verify their ALE coverage provision, limits and learn about requirements to use the coverage. It is critical to keep all receipts and document the date, time and names of any insurance company employees you speak to regarding your coverage and details of the conversation. In addition, CDI has told evacuees to keep all keep all receipts accrued during the evacuation.
Additional resources and information for consumers on wildfires are available from the California Department of Insurance. In addition, consumers are being told to download a free home inventory guide from the department Web site, or receive a hardcopy by calling the California Department of Insurance Consumer Hotline at 800-927-HELP (4357).
Insurance Companies Extend Time to Access Benefits Past Two-Year Cutoff
Twenty-six insurance companies have agreed to extend the time limits for 2017 wildfire survivors to access additional living expense benefits after Commissioner Ricardo Lara appealed to them to stand by their customers who are still in the process of rebuilding their homes. These companies represent a majority of the total losses from the devastating 2017 wildfires that struck Santa Rosa and other parts of Northern California.
With only approximately 20 percent of homes rebuilt today, many survivors have faced unavoidable delays due to the scale of destruction and construction labor shortages. Commissioner Lara approached insurance companies to honor the spirit of a new state law passed in the wake of the deadly 2017 fires by extending additional living expense, or ALE benefits, from 24 to 36 months.
ALE coverage typically includes additional food and housing costs, furniture rental, relocation and storage, and extra transportation expenses, among other reimbursable costs. ALE benefits differ by insurance company. Some plans have a set dollar limit, some have a time limit, and others have no limits.
In the aftermath of the catastrophic 2017 wildfires, the Department of Insurance, California State Legislature, and Governor recognized that 24 months does not provide sufficient time to remove debris, obtain all necessary building permits, locate and hire a contractor and multiple subcontractors, and completely rebuild destroyed homes. The extraordinary circumstances of the 2017 fires still persist today with many consumers remaining in limbo due to these circumstances beyond their control.
The passage of Senate Bill 894 (Dodd and McGuire, Chapter 618, Statutes of 2018), Assembly Bill 1772 (Aguiar-Curry and Wood, Chapter 627, Statutes of 2018), and Assembly Bill 1800 (Levine, Chapter 628, Statutes of 2018) increased the 24-month mandatory ALE coverage period to a minimum of 36 months if a policyholder acting in good faith and with reasonable diligence encounters delays in the reconstruction process of their home.
