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F. Y. I

AFTER FIRES, HOMEOWNERS FEEL AN INSURANCE PINCH. Solomon Moore. The New York Times. 2007/11/13. Page A18. Many of the 14,000 homeowners who suffered losses from the recent wildfires in California are realizing that their insurance may not cover the cost of rebuilding. According to the California Department of Insurance as many as 40 percent of the state’s homeowners do not have enough insurance to cover the costs of replacing their homes, and most realize they are underinsured only after a disaster. Robert Hartwig, president of the Insurance Information Institute, said that the principal cause of underinsurance is the failure to report improvements to the home to the insurance company, and it’s a common problem. Hartwig disagrees with John Garamendi, California ’s lieutenant governor and former insurance commissioner, who, in a news conference, said that the lack of clarity in policies written by insurance companies was the main reason homeowners were not adequately covered. Hartwig characterizes Garamendi’s comment as a “figment of his political imagination” since there is no evidence supporting his accusation. Hartwig noted that no report from any state agency suggests that there is a problem in clarity in insurance policies.

And from the LA Times:

October 30, 2003

(Farmers Insurance adjuster Karen Staker gets a good-bye hug from Derrick Grimes. His San Bernardino home was destroyed in the fire.)

This is the reality of life, and this is one time when foresight serves you much better than hindsight.

Now is an excellent time to make sure that your home is properly covered.

Simply fill in the form for your personalized fire quote and then...

Let our agency reveal to you just how much you can save in premium, and have the right and proper
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because when disaster strikes, peace of mind is knowing your home is well covered from the foundation to the shingles and everything in between ...
which happens to be where you live.

Homeowners
feeling the
insurance
pinch after
*wildfires
By Solomon Moore
New York Times

LOS ANGELES -~ Daniel
and Doris O, whose
custom-built 6,500-.square-
foot house was destroyed in the
recent wildfires in Southen
California, have been poring
over receipts and family pho-
tos to estimate the damage.
But like many of the 14,000
homeowners, who suffered
losses, the Q... are dis-
covering that the insurance
on their hilltop home in San
Diego County might not be
enough to rebuild it.
"I have about $1.5 million
coverage for dwelling only,"
O...said, or the equiva-
lent of about $230 per square
foot of construction. "For custom-home construction, I am
getting prices like $350 up to
*500 per square foot."
As Californians recover
from another season of dev-
astating wildfires, one of the
biggest obstacles is a pain-fully familiar one. As many
as 40 percent of homeowners
statewide lack enough insur-
ance to cover their home-re-
placement costs, according to
the. California Department of
Insurance, and most, realize
the problem only when it is
too late.
After past disasters, Cali-
fornia state officials' tried to
raise homeowners' awareness
of their coverage limits by requiring policies to be written
clearly, and with disclaimers
about what is not covered.
But several national studies
suggest that many homeown-
ers tend to "underestimate risk"
and do not understand that
their policies do not guarantee
replacement of their home.
"Most Americans still think
that full coverage means full
coverage, but insurance com-
panies know otherwise," said
Douglas, Heller, executive
director of the Foundation
for Taxpayer and Consumer
Rights, an advocacy orgáni...