The California Department of Insurance (CDI) has announced that Insurance Commissioner Ricardo Lara is urging Californians affected by the Canyon, Gifford, and other fires to reach out to their insurance providers about potential coverage for evacuation and relocation expenses.
According to the CDI, homeowner and renter insurance policies may cover costs related to evacuation under Additional Living Expenses (ALE) coverage. This can include expenses such as housing, food, furniture rental, relocation, storage, and transportation. Residents are advised to keep receipts, verify coverage and limits with their insurance provider, document interactions with company representatives, and ensure that any agents or public adjusters are properly licensed. Most renter policies include ALE coverage. The Department of Insurance offers guidance for wildfire claimants in multiple languages.
Senate Bill 872, sponsored by Lara in 2020, mandates insurers to provide at least two weeks of ALE benefits and advance payments for a minimum of four months without requiring an itemized inventory. Consumers are encouraged to keep copies of policies and important documents, maintain a photo or video inventory of possessions, and be aware that public adjusters cannot solicit business for seven days following a disaster.
“When our firefighters say it’s time to evacuate, you need to go. Cost should not be an obstacle,” said Commissioner Lara. “I want evacuees to know that additional living expense coverage can help alleviate the stress and financial burden of mandatory evacuations.” He further advised evacuated residents to keep their receipts and contact their insurance agent to understand their coverage and any additional resources available during this time.
The California Department of Insurance was established in 1868 with a focus on consumer protection. Led by Commissioner Lara, CDI regulates the state’s insurance industry by overseeing insurer solvency, licensing agents and brokers, monitoring market practices, resolving consumer complaints, and investigating insurance fraud. With nearly 1,400 employees supervising over 1,600 insurance companies and more than 495,000 licensed professionals annually handling hundreds of financial reviews and thousands of complaints while recovering over $130 million for consumers. Proposition 103 expanded CDI’s authority in 1988 by making the Insurance Commissioner an elected position requiring prior approval for certain insurance rates.
