These developments, coupled with lengthy delays to settlements and rebuilding, created uncertainty and anxiety for policyholders. To that end, here are four tactics insurers can use to ease confusion and help customers pick up the pieces.

No. 1: Expedite the process wherever possible.

The sheer volume of policyholders with emergency needs is, of course, the first big challenge. In many cases, claims and settlements from the 2017 wildfires are still being processed, creating additional delays in sorting out 2018 claims. Under normal circumstances, claims can take weeks. In this environment, they could take months. What's more, settlements may also be delayed as a result of a limited building material inventory and contractor availability.

However, many insurers now expedite catastrophe claims by immediately deploying catastrophe teams and leveraging new technologies to streamline information gathering. Drones and mobile apps are making it easier — and safer — for claims professionals to quickly assess damage and share data. Once the settlement process is underway, claims pros should check if their companies have made arrangements with suppliers to streamline access preferred access to required materials. It also pays to become familiar with the technology that can help expedite claim payments, such as SIUs, updated claims systems, chatbots and others.

No. 2: Educate policyholders.

Policyholders will be more calm and confident in the claims process if they have a better understanding of how their coverage works and a realistic timeline for when they can start putting their lives back together. Provide policyholders with details on what will be expected from them in the claims process, including what to do with damaged items, necessary repair estimates, and claim time limits.

Another key education opportunity exists around the specifics of their policy, including out-of-pocket costs like deductibles and additional costs for older homes that may not meet current building codes. Make sure policyholders understand the difference between replacement cost and actual cash value. Most policies are written on a replacement cost basis, but in some cases, the policy will be written to provide coverage on the actual cash value, which deducts for depreciation. This can come as a shock to homeowners when they receive a lower payout because their policy is based on the pre-damage age and condition of their property and contents, and not the cost to rebuild and replace with materials of like kind and quality.

Moving forward, insurers can help policyholders by providing additional context and assistance around updating estimated replacement value of the home and belongings. This can avoid surprises in the event of a loss. A renewal questionnaire can uncover the need for endorsements or special coverage, such as for high-value jewelry or other valuable property or collections.

No. 3: Connect policyholders to resources.

Several resources exist to help policyholders affected by the California wildfires. In the case of losses exceeding coverage limits, there are government disaster programs which may provide low-interest loans or other types of relief funds to offset some costs. The Federal Emergency Management Agency (FEMA) offered disaster assistance for residents in Butte, Los Angeles and Ventura counties. The agency continues to provide other resources on repairing and rebuilding after the fires, as well as details about flood insurance and other precautions to take after wildfires. Tax relief is also available for homeowners and business owners in Butte, Lake, Mendocino, Napa, Nevada, Sonoma and Yuba counties. While such programs cannot entirely replace inadequate policy limits, they do provide some relief for customers who would otherwise pay additional costs out of pocket.

It's also crucial to stay up to date with any state-specific regulations that may affect policyholders' coverage. For example, the Loss of Use provision, which covers living expenses such as hotel stays and transportation, generally applies for up to 24 months after a loss occurs. For 2019, the period will extend to 36 months in California.

Insurers can locate resources to pass on to customers through the California Department of Insurance and the California Wildfires Statewide Recovery Resources website.

No. 4: Be a sounding board.

One of the most important things you can do today to help customers and ease their stress is to make time to communicate. Check in often to offer assistance. Provide a checklist of things they should do, such as saving any receipts related to the loss and rerouting their mail. Ensure that policyholders know what to expect next at every step in the process.

It's also a good idea to help homeowners set realistic expectations. For example, homeowners may think 36 months is plenty of time to rebuild to homeowners. But insurers can lay out for them how the high demand for limited resources in a catastrophe zone may delay the rebuilding process.

This rebuilding will take time, and it may not always be a seamless process. It's critical to show customers how their insurer can be a key partner and where you're using ever tool at your disposal to help expedite and improve the process.

Ann E. Myhr (Myhr@theinstitutes.org), CPCU, ARM, AIM, ASLI, AU, is senior director of Knowledge Resources at The Institutes in Malvern, Pa. These opinions are the author's own.

See also:

• The aftermath of wildfires: Insurance coverage questions answered
• 12 tips to protecting yourself after a wildfire
• The new reality of North America wildfire