Insurance Commissioner Ricardo Lara declared the fires in Los Angeles and Ventura counties an emergency situation on Monday to help speed recovery efforts, according to a press release from his office. As of Wednesday afternoon, the fires had killed 25 people, destroyed more than 12,000 structures and tens of thousands of acres, and forced evacuations of at least 200,000.
Amid the devastating Southern California wildfires, the Collision Industry Foundation (CIF) is available to assist the collision industry in recovery efforts.
Individuals and business owners can also apply for assistance from CIF if they’ve lost personal property, such as a house, from a disaster. To apply for assistance, click here.
“CIF immediately reacted to the horrible events in California by offering assistance on our Facebook and LinkedIn pages,” said Petra Schroeder, CIF’s secretary. “We created a specific donation campaign and announced it. We reached out to our supporter networks and asked for help to find collision repair professionals who were affected by the fires.
“During our board meeting on Jan. 20 in Palm Springs, California, this will also be an important topic to further review.”
The organization doesn’t provide funds for businesses. However, business owners can apply for funds for items like tools that they personally owned.
Tax-exempt donations can be given to the nonprofit here. Donations can be made once, monthly, quarterly, or annually.
Lara’s declaration requires strict oversight of out-of-state adjusters who are helping handle the large volume of claims from the Palisades and Eaton fires as well as several others.
Lara has also issued a one-year moratorium on residential insurance cancellations or non-renewals by insurance companies within the zip codes impacted by the fires. A notice issued by Lara will protect those in the wildfire zones who received a non-renewal notice 90 days before Jan. 7 with an effective date after the start of the wildfires.
“Claims must be paid fairly, quickly, and completely to speed the recovery,” Lara said, in the release. “My emergency declaration will help wildfire survivors so they are not being forced to wait for extended periods of time before receiving their benefits. I am doing everything in my power to streamline the recovery process during this unprecedented time so that residents can begin putting their lives back together in the wake of these devastating wildfires.”
Insurance companies may have their own adjuster and/or may contract with an independent insurance adjuster to assist consumers with their claims. The Department of Insurance urges consumers to begin the claims process by contacting their insurance company or agent and to settle their claims before contacting a public adjuster or a lawyer, the release states.
If consumers have questions or concerns about their claims, what their insurers are telling them, or settlement offers, the department’s consumer services team is prepared to assist at no charge.
Last week, Lara issued a notice to public adjusters reminding them of the laws in place for how and when they may contact those affected by wildfires and warning them to comply to protect survivors. The DOI says it’s on alert for potential fraud and illegal actions targeting survivors.
Free insurance support workshops will be held by the DOI on Jan. 18 and Jan. 19 in Santa Monica and Jan. 25 and Jan. 26 in Pasadena to help survivors understand their insurance policies and the claims process while also providing information about available resources for rebuilding and recovery, the release says.
The workshop is open to all those impacted by the recent wildfires. Participants are encouraged to bring a copy of their insurance policy, declaration page, and any relevant correspondence related to their concerns.
One-on-one consultations can be scheduled by calling 800-927-4357.
“The devastation caused by these wildfires is heartbreaking, and my thoughts are with everyone who has been affected,” said Lara, in a release. “Our top priority is to stand with Californians during this challenging time, ensuring you have access to the support and services you need. We are committed to holding insurance companies accountable so they fulfill their obligations to policyholders. To further assist survivors, we are organizing multiple insurance workshops across affected areas, providing essential tools and resources to aid in recovery and rebuilding. We will continue to be here for all wildfire survivors, working together to help our communities heal and emerge stronger.”
The DOI also has resources for disaster survivors including how to avoid scams after a disaster.
Consumers who have questions about their insurance or wish to file a complaint can do so on the department’s website or by calling 800-927-4357.
According to a blog post from law firm Pillsbury Winthrop Shaw Pittman on JD Supra’s website, those with damaged businesses should evaluate business interruptions and coverages for potential issues.
“Your policy should cover your extra expenses and loss of income caused by direct physical loss to your property but that is only the starting point,” the post states. “Most modern commercial policies also provide extended coverage for certain categories of loss caused by damage to other parties’ property. This includes damage to utilities and other services, property that permits entrance or exit to your property, and property of customers or suppliers. The latter coverage, for damage to upstream and downstream vendors and customers, is called ‘Contingent Business Interruption’ coverage.
“For those experiencing fire damage to their business, understanding and documenting the timing of your additional expenses and income loss may well turn out to be the most important step you can take to maximize coverage… The business interruption portions of your policy will likely include a waiting period, stated in terms of a number of days or weeks—ranging from one to 45 days before business interruption coverage applies.”
The firm also recommends business owners:
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- “Carefully document lost or delayed sales, and track ‘extra expenses’ incurred to keep the business running or to reduce loss of business (e.g., providing more expensive product where contracted product is damaged).
- “Keep a separate account to record expenses related to the fire and retain all receipts.”
Images
Featured image: Pictured is the scene of 2024 Southern California wildfires in Lake Hughes, an unincorporated community in Los Angeles County. (Credit: EyeEm Mobile GmbH/iStock)
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Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.