Even if policyholders displaced by the fires have already filed a claim and received a displacement expense payment, they should still document their ongoing expenses in case they need coverage beyond the allotted four months, the panelists said. Panelists also recommend signing a rental agreement with family members or friends who they may be staying with so that they can point to it if they seek reimbursement for utilities or other expenses, they said.
The panelists noted that Gov. Gavin Newsom declared a state of emergency, so in the event of total loss, an insurer must also offer policyholders an up-front payment of no less than 30% of the policy limit applicable to the dwelling for all personal property destroyed — up to a maximum of $250,000 — without requiring the insured to file an itemized claim form documenting the personal belongings that were destroyed in a disaster.
Some policyholders prefer to take the 30% payment due to the emotionally taxing process of accounting for everything lost, the panelists said. And even smoke-damaged properties can recover between 75% and 100% for personal belongings destroyed, they said.
