Californias insurance commissioner Ricardo Lara recently announced two new actions intended to help survivors of the states recent spate of catastrophic wildfires who are facing unavoidable delays in rebuilding.
The Department of Insurance has asked insurers to extend additional living expense (ALE) coverage by a full year to survivors whose additional living expense benefits will expire within months.
It also issued a second notice requesting insurers not to deduct the land value when settling total loss claims at full replacement cost — a practice many insurance firms are carrying out, according to the Department.
Kevin Daley, president of the Western Zone for the PURE Group of Insurance Companies, has applauded the California Department of Insurances efforts to improve consumer protection and encourage best practices among the states insurers. He told Insurance Business the severe wildfire problem in California can only be solved if “the insurance industry and the government work together.”