2005 Insurance Reference Manual

Personal Insurance Federation of California Insurance Reference Book

INSURERS CONTINUE TO WORK CLOSELY WITH 2003 FIRE SURVIVORS

EL CAJON, CA - California insurers are continuing to work closely with their policyholders to pay more than $2.04 billion contained in claims filed after the devastating 2003 Southern California wildfires, according to three insurance trade associations.

The trade associations are: the American Insurance Association (AIA), the Association of California Insurance Companies (ACIC) and the Personal Insurance Federation of California (PIFC). Together they represent insurers that write more than 90 percent of the homeowners insurance in San Diego.

Representatives of the associations attended a public hearing today in El Cajon, called by Senator Jackie Speier (D-Hillsborough), chair of the Senate Insurance Committee, to discuss insurance issues arising from the 2003 Southern California fires.

"This marks the tenth town hall hearing held in Southern California since the fires," the trade association representatives noted. "Insurers are here to join policyholders and Senator Speier in the search for solutions to any problems that may have arisen from the fires and not already addressed. Insurers are in business to help their policyholders with their claims and to provide quick and complete claims service as problem-free as possible."

The insurers noted that previous town hall events and hearings lead to the introduction and passage of a comprehensive slate of four new laws.

Two of the four bills signed into law by Governor Schwarzenegger, including Senator Speier's SB 64, have already become law. The others will go into effect January 1, 2005. Once fully effective, insurers believe the new laws will address the issues and concerns raised at previous hearings and town hall meeting, said the insurer representatives.

"Insurers worked closely with the bills' authors, including Senator Speier. Her SB 64 created a mediation program that will give policyholders a process to resolve conflicts without having to go to court. There are a number of policyholders in the San Diego area who are already benefiting from the mediation program," according to the trade association officials.

"Insurers are working diligently with their policyholders to get them back into their restored homes as quickly as possible. It takes time and patience to complete the building process after a loss, especially after such as devastating disaster," reported association officials.

"We welcome the opportunity to continue working with Sen. Speier and others to help consumers," the insurance officials said.

As a reminder for homeowners, the following are tips for being properly insured:

Homeowners should check their insurance policy limits annually to help make sure they provide the coverage needed for repairs or rebuilding.
Notify your agent or company if you have made any major renovations to your home or structure. A new family room or remodeled kitchen may not be recognized in your current policy.
Homeowners should maintain an up-to-date home inventory of personal belongings and consider purchasing extra coverage (known as endorsements) for expensive items, such as jewelry, art collections or computer equipment.
Residents of wildland urban interface areas should maintain defensible space around their homes. For residents of wildland urban interface areas, state law requires a minimum of 100 feet of defensible space, but local municipalities and insurance companies may require more. Fire retardant materials should be used when rebuilding.

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