In recognition of the declared state of emergency issued by the governor on August 18, the commissioner is calling on all P&C companies to implement emergency expedited claims handling procedures and billing grace periods to help the area recover more quickly.
Insurers should grant billing leniency for at least 60 days for those in designated wildfire disaster areas. Renewal notices and bills for any type of policy may have been lost or destroyed, and mail forwarding may not be possible.
Insurers should adopt a standard ALE advance payment of at least 4 months, and additional ALE beyond that should be available upon proper documentation of additional expenses upon policyholder request. Advance payment is necessary during a disaster for emergency lodging, food, clothing and other necessities.
An advance of 25% for payment of personal property contents should be provided for those who have sustained a total loss of the primary residence without completion of an inventory. Additional payments should be available upon receipt of property documentation.
Company specific inventory forms should not be required if the insured can provide an inventory form with substantially the same information. Additional payment should be available upon proper proof provided by the insured at an their request. Insureds be allowed to group certain items together on the inventory form, such as clothing, shoes, books, CD, DVD, and other items where individual listing the items is not practical.
Vehicle claims should be expedited and paid under comprehensive coverage.
Debris removal should be coordinated with a consolidated process through the city, county or state unless the insurer can provide removal faster outside of this process. Insured and insurers would not be obligated for more than reasonable removal expenses, and insurers should assist insureds with providing required information to the county for its diligence requirements.