California issues emergency declaration assisting insurers with large volume of claims

The emergency declaration seeks to assist wildfire survivors as the largest fire in state history continues to burn.

A burned-out vehicle stands during the Camp Fire in Paradise, California, U.S., on Tuesday, Nov. 13, 2018. (Photo: David Paul Morris/Bloomberg)

Updated Friday, Nov. 16 at 3:30 p.m.

As of Thursday morning, California’s Camp Fire — now the state’s largest and deadliest in history — has left 66 dead, over 600 missing and has destroyed more than 7,600 homes after burning through 138,000 acres. In Southern California, the Woolsey Fire has burned nearly 100,000 acres and destroyed 435 structures.

According to the latest information from CoreLogic, 23,044 homes are at high or extreme risk within the perimeter, with a total reconstruction cost value of $8.6 billion.

In wake of these two ongoing catastrophic events, California Insurance Commissioner Dave Jones has officially declared an emergency situation, which will allow insurance companies to use out-of-state adjusters to help handle the large volume of claims that will result from the Camp and Woolsey Fires.

The state Department of Insurance has issued a formal notice to insurers, licensed public adjusters and admitted carriers to ensure all claims adjusters assigned to wildfire claims are properly trained on the California Unfair Practices Act, Fair Claims Settlement Practices Regulations, and all laws relating to property and casualty insurance claims handling.

Related: California’s Camp wildfire largest, deadliest in history [photos]

New insurance laws

In the notice, Jones reminds insurers of several new laws that were enacted in the last legislative session. These “urgency bills” are effective for all claims related to the Camp and Woolsey wildfires.

In the first new law, policyholders now have 36 months after a declared disaster to collect full replacement cost to rebuild, replace at another location, or purchase an already built home at a new location. Secondly, additional living expense coverage is available for 36 months but is subject to policy provisions.

Emergency claims handling guidelines

Breaking down the emergency expedited claims handling guidelines, here is a basic summary Commissioner Jones has issued. Insurers has outlined the following for insurers, licensed public adjusters and admitted carriers who must:

Policyholders should contact their insurance company and insurance agent to begin the claims process. They may also contact the Department of Insurance Consumer hotline at 800-927-HELP (4357) to seek assistance or visit the Department’s website for tips and advice.

Related: The new reality of North America wildfire