قالب وردپرس درنا توس
Home / Insurance / New California law requires insurers to pay up to 36 months additional living expenses and advances of at least four months payments after fires | Legal insurance blog about property insurance

New California law requires insurers to pay up to 36 months additional living expenses and advances of at least four months payments after fires | Legal insurance blog about property insurance



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

2 months extension of ALE, a total of 36 months if an insured person acts in good faith and reasonable diligence encounters delays in the reconstruction process that are a result of circumstances that the insured cannot control. For example, in 2017, Woolsey fire victims faced many conditions beyond their control, such as permit delays, timber shortages and shortages of available contractors. For most insureds, their ALE benefits expire in November, and many can spend extra time rebuilding their property. Unfortunately, this new rule will not take effect until July 1, 2021, and will not be retroactive, meaning that Woolsey victims or anyone applying for the current fires in Southern California will not benefit from the change.

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.


Source link