The report also documents numerous problems, including the slow pace of building permit issuances, that have hampered the rebuilding process. In San Diego County, 2,691 homes were destroyed, but, as of October 25, only 655 had received permits to rebuild and only 150 had been rebuilt and approved for occupancy. Although the reasons for the delays vary, the commissioner cited insurers' handling of claims as a factor.

“People cannot rebuild if they haven't been able to settle their claims with the insurers yet,” he said. “These people need help now, and they need the appropriate amount of cooperation from the insurers; otherwise, when their additional living expense money runs out, they may not have anywhere to live.”

In response to the report, the Association of California Insurance Companies has said that it finds the DOI's numbers to be inflated. According to the ACIC's figures, 18,636 post-fire claims were filed with insurers, of which 676, or 3.6 percent, resulted in complaints to the department, said Sam Sorich, president of the association.

“Granted, one justified complaint from an unhappy policyholder is too many,” Sorich said, “but the percentage of complaints is relatively low, considering the magnitude of the disaster and the numerous difficulties experienced during the recovery process, such as locating materials and builders.”

Sorich specifically addressed the issue of underinsurance, saying that those complaints accounted for less than 2 percent of the total claims filed. “In the few cases where underinsurance may exist, a number of factors may be involved,” he said. “For example, building materials and labor costs after a disaster increase to unusually high levels. Or, a policyholder may have failed to inform the insurer of major home improvements.”