New laws passed last month provide additional support to California firefighters by requiring carriers to provide additional coverage. Just a few years ago, California enacted laws requiring insurers to cover additional living expenses (ALEs) incurred as a result of a covered loss in connection with a state of emergency – almost every massive wildfire – for a period of no less than 24 months. (California Insurance Code Section 2060 (b) (1).)
However, these laws were amended once again, providing more benefits for homeowners. (California Insurance Code section 2060 (b) (1).) The key to these changes is that insurers must now provide up to an additional 1
Another important change is that in the event of a total loss, the insurer must pay an advance payment of no less than four months' living expenses at the request of an insured. This rule enters into force on 1 January 2021. (Insurance code section 2061 (a) (1).)
Interestingly, a public adjustment recently drew my attention to a list that a carrier provided to his client of possible expenses covered by the part of the additional cost of an insurance. The list included:
Accommodation costs • meal costs while you are without cooking facilities • extra transport fees • telephone fees, ie. installation and / or temporary transfer of service charges • additional costs for temporary stays • long charges that do not normally arise • non-refundable deposit (s) • extra costs for special needs, ie wheelchair ramp etc. due to temporary relocation • accommodation for pets if you can not stay with you • laundry while without a washer / dryer.
California law has always required insurers to provide a list of potential expenses, but compliance has not always occurred. (Insurance code section 2060 (a).) It is possible that the recent changes in the rest of the section caused carriers to pay extra attention to this section. Regardless, it is a useful list for all policyholders who will claim ALE benefits during a claim.