The state's Department of Insurance has released a report showing that formal complaints against insurers rose by 22 times following the southern California wildfires of last year.
“This disturbing report, at the very least, demonstrates a systemic problem of underinsurance that is happening throughout the industry,” said Insurance Commissioner John Garamendi. “At worst, it indicates that insurers, in many cases, have not held up their end of the bargain with fire survivors who are looking to rebuild their lives.”
The department's study of complaints found that, of the 2,734 total-loss claims filed with insurers following the fires, 22 percent generated complaints over the handling of the claim by the insurer. Of the 676 complaints filed, 316 involved underinsurance. Typically, the DOI receives complaints from about 1 percent of all claims in most lines of insurance.
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