Many neighborhoods still don't have power, and "do not drink" notices are in effect for several areas. (Credit: Amanda Bronstad/ALM)
California’s insurance commissioner is urging insurers to continue to provide Additional Living Expense (ALE) coverage to LA wildfire victims even if their homes have become accessible.
“Accessibility alone does not guarantee a home is safe to live in,” said Insurance Commissioner Ricardo Lara, in a statement. “Survivors should not be forced to return to unsafe conditions, whether due to toxic ash, contaminated water or the lack of essential utilities.”
Most residential property insurance policies are required by law to provide at least 24 months of ALE coverage — which helps pay for things like temporary housing, food and relocation costs — after a declared state of emergency.
Even if a home wasn’t directly damaged by the fires, policyholders can qualify for ALE coverage if basic utilities aren’t functional, health and safety hazards exist or local health officials have deemed the area unsafe to live in.
The Los Angeles County Department of Public Health issued a public health advisory last week to residents near burn areas, warning about the dangers of fire debris for anyone living within 250 yards of a burned structure. The debris and ash may contain asbestos, heavy metals, chemicals and other hazardous substances.
Clearing the debris improperly can leave residents exposed to toxic materials and also spread hazardous substances. In January, the Los Angeles Public Health Officer issued an order prohibiting the cleanup and removal of fire debris until hazardous materials inspections are finished.
In many locations, power is still not restored, and “do not drink” notices are in effect for water in several areas.
Yet, Lara said some insurers are ending ALE coverage for policyholders affected by the fires as neighborhoods become accessible.
“My department is directly hearing from policyholders and local elected leaders, among other sources, that some insurance companies are advising certain claimants that their Additional Living Expenses coverage is being terminated,” Lara said in the notice to insurers.
Lara said insurers must perform due diligence to ensure policyholders’ homes are fully habitable.
“Insurers must thoroughly assess habitability and ensure that families receive the financial assistance they need to rebuild their lives,” Lara said in a statement. “My message to insurance companies is clear: honor your commitments, comply with the law, and provide the coverage that policyholders deserve.”
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