Insurance Firms Admit Some Fire Victims Inadequately Covered

Acknowledging that they inadequately insured some fire victims of the Oakland hills conflagration, several insurance companies have begun notifying victims that they will handle their claims as if they were fully covered.

Insurers have upgraded at least 30 policies of individuals whose homes were among the 2,668 destroyed in the fire, the Oakland Tribune reported. The move sends a hopeful message to many homeowners who are still stuck with a shortfall between their coverage and the cost of rebuilding.

Many fire victims have said they relied on their agents or insurance companies to determine their needs and did not realize until after the fire that policies they thought fully covered them did not.

“The message is they (consumers) shouldn’t roll over and play dead,” said Ina DeLong, president of United Policyholders, a consumer group that has worked closely with fire victims.