PAGE 8 Wildfires Continued Insights for Your Industry E04-1026 PROTECTING YOUR PROPERTY 1 Wikipedia, Oakland firestorm of 1991; accessed at https://en.wikipedia.org/wiki/Oakland_firestorm_of_1991 2 Wikipedia, 2016 Fort McMurray wildfire; accessed at https://en.wikipedia.org/wiki/2016_Fort_McMurray_wildfire 3 Kieran Nicholson and Alex Burness, “NCAR fire prompts evacuation of 19,000 people in south Boulder, Eldorado Springs,” Denver Post, March 26, 2022; accessed at https://www.denverpost.com/2022/03/26/boulder-wildfire-ncar/ 4 See Wildland Fire Mitigation and Management Commission https://www.usda.gov/topics/disaster-resource-center/wildland-fire/commission 5 Adjusting Today Underinsurance at https://www.adjustersinternational.com/publications/adjusting-today/avoiding-a-double-disaster 6 Insurance Services Office, HO 00 03 01 11 Homeowners 3 – Special Form, p. 5 7 California Insurance Code, Section 2060 (a) 8 California Insurance Code, Section 2061 (a) inflationary conditions, where construction costs are skyrocketing. “Have a home builder help determine the cost to rebuild your home in today’s market and increase your limits accordingly,” he says. “In addition, purchase at least two years of ALE coverage, since this is the average time it takes to start rebuilding after a wildfire.” Greenspan notes that, in California, insurers are now required to provide at least 24 months of ALE coverage following a covered loss related to a declared emergency that renders a dwelling uninhabitable. Insurers are also required to provide up to 12 months of extended ALE coverage, up to 36 months in all. Regarding personal property, Greenspan urges insureds to, “review the value of your contents and pay attention to articles for which coverage is limited in your policy. This includes fine arts, cash, gold, watches, jewelry, antiques, rugs, and more. If you have items like this, consider purchasing a ‘personal articles floater.’” In almost all cases, claims that may be easily managed when a dwelling is damaged on its own will become more complicated and costly for the insured when scores of homes are damaged. The resurgence of fire damage calls for a renewed focus on fundamental fire underwriting, loss control, and claims management. 800.426.0677 | aipnw.com Sheila E. Salvatore, Editor | Editor@AdjustersInternational.com Copyright © 2022 Adjusters International, Ltd. All Rights Reserved. Insights for Your Industry® is published as a public service by Adjusters International, Ltd. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases.
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