Home Owner's Insurance Renewals after a loss

The Homeowner Bill of Rights states that the insurer must renew the HO policy at least once following a total loss (Insurance Code Section 675.1).

It also states they cannot cancel the existing policy on a damaged (partial loss) house, but it could mean that the insurer could non-renew the policy of a partial loss. We’ve seen insurers use this loop hole to non-renew a partial loss home.

So, it is clear a total loss must be renewed at least once and partial loss policies cannot be cancelled during the individual policy period. However, insurers may non-renew a partial loss or other homes in the fire area at the end of the policy. Keep in mind that policies can always be cancelled for non-payment, at the homeowner’s request or reasons stated in Insurance Code Section 676.

It is not clear how long the Insurer must renew the total loss policy. While stating the policy must be renewed at least once, the statute states the policy cannot be cancelled while the house is under reconstruction which could take, as we have seen, more than two years following the fire.

You can find more information at:

http://www.insurance.ca.gov/wf-con-info/0020-ho-rights

One year deadline to finish a claim, or two?

Many fire survivors are coming up on the first year anniversary of their disaster. Many see that their policy has a deadline that states they must repair or replace within one year, but is that true for everyone? If you live in California and your property was damaged due to a State OR Federal disaster you should look into the state regulation 2051.5.

The description of this law given on the California Department of Insurance website reads as follows:

"Allows at least 12 months to rebuild and still receive replacement costs with possibility of a 6 month extension.  If a declared disaster (Governor's State of Emergency), homeowner/insured has at least 24 months to repair, rebuild or replace the home."

You can read the summary here:
http://www.insurance.ca.gov/consumer-alerts/2007newlawsnoticecawildfire.cfm

Or read the exact code here:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=ins&group=02001-03000&file=2050-2060

Try out our Loss Worksheet

Are you trying to calculate your total loss from the disaster? Try using our Loss Worksheet. You can download it as an interactive spreadsheet or as a printable worksheet. Here are the links:

http://carehelp.org/files/Handouts/ConfidentialLossWorksheet.xls

http://carehelp.org/files/Handouts/ConfidentialLossWorksheet.pdf

One Year Deadline Clarified

There are 3 deadlines to file a lawsuit regarding a claim against your insurer:

• Contract—the insurance policy itself—one year from the date of the loss.
• Statute—California Insurance Code Section 2071 (and 2070)—one year from the date the claim is fully paid or closed or letter from insurer saying it is closed.
• Case law—Prudential-LMI v Superior Court (delayed discovery rule)—one year from discovery of the loss.  

None of the deadlines are contingent on any other activity, criminal or civil.To avoid any unexpected complications, expense or dismissal, it is always safest and best to rely on the shortest deadline. One year from the exact day of the loss is the latest to timely file a lawsuit without incurring arguments from the insurance defense attorneys that the case be dismissed for an untimely filing.In summary, the one year anniversary of the fires is approaching.  Alleged criminal activity by a third party will not extend any of these deadlines.