Some Common Questions on Fire Insurance

With hundreds of Southland homes destroyed, damaged or endangered by fire, here are some questions and answers about fire insurance coverage. For more information, the state Insurance Department maintains a toll-free consumer hot line at (800) 927-HELP. State Farm Insurance, the largest insurer in the United States and in California, has set up a number for claims: (800) SF CLAIM (732-5246). And Western Insurance Information Service, an insurance industry-sponsored educational organization, also supplies brochures about coverage and can be reached at (800) 391-1679.

Q. What do I need to know about filing a claim?

A. State insurance regulations require your insurer to provide you with claims forms, instructions and assistance, if needed, within 15 days of your notifying them of a claim.

The state Insurance Department advises keeping a log of all phone calls or meetings with claims adjusters or other insurance representatives and maintaining an organized file of letters, receipts and other documents related to your claim. This may head off disputes down the road.

*

Q. What do I do about living arrangements if my house is destroyed?

A. Contact your insurance agent immediately. Most insurers will provide you with a living allowance to cover temporary shelter and to replace clothing. You generally do not have to complete a claim to get these emergency payments.

It is to your benefit, however, to get the claims process started as quickly as possible, particularly in fires of this magnitude. Although insurers are assembling catastrophe teams of claims adjusters, there is likely to be a backlog of applicants.

*

Q. What if my home is livable but needs repairs?

A. In a disaster, insurers will make total losses their first priority, and there could be a delay in getting to your claim. Make the repairs necessary for your comfort and safety, and make sure to keep receipts to ensure reimbursement later.

*

Q. I’ve heard that if I don’t take “reasonable care” to save my belongings, my insurance coverage could be jeopardized. Does that mean I need to turn off the gas, turn on the sprinklers and take everything I can carry with me?

A. Emphatically, no. Gas lines are being shut off by teams of gas company employees, who are working with firefighters. Meanwhile, leaving hoses and sprinklers on could reduce water pressure for firefighters.

As for taking belongings, insurers stress that “reasonable care” clauses usually only apply to situations where the homeowner has been grossly negligent long after danger has passed. For instance, if fire had already ravaged your neighborhood and fire officials said you could return to pick up any belongings that were left, you might be considered negligent if you returned and decided to leave an undamaged silverware collection that later was stolen. No one expects you to pack a U-Haul before evacuating your house.

*

Q. What should I do if my house is threatened?

A. Put personal safety above all else. In other words, if there is any threat of danger, get out without delay. But, if there is no immediate threat and you have a video camera, do a walk-through to document what you have. A video record should take no more than a few minutes to complete, and it could save you months of wrangling with your insurance company.

*

Q. What needs to be on the video?

A. You want to show the structure, contents and quality of the house, inside and out. Be sure to open drawers and closets in each room.

Pay special attention to unusual or expensive items. Generally, insurance payments assume that your furniture and valuables are worth roughly the same as the average consumer’s valuables. If they are not, it is to your benefit to document how they differ.

For example, if your furniture is new, get it on the video with a voice-over saying when and where you bought it. If your china or crystal is costly, make sure to open the cupboards. Is your silverware real silver, rather than stainless steel? Are your shoes Italian leather? Are your appliances top of the line? Get them on the video.

Keep a copy of the videotape somewhere safe, away from the house so it will survive a fire.

*

Q. Should I take things with me when I leave my home?

A. If you have plenty of time, gather things that would not be insured or could not be replaced, says Bill Sirola, a spokesman for State Farm in Bloomington, Ill. Personal papers, such as wills, insurance policies, tax forms and photographs may be easy to gather and difficult to replace, for example.

*

Q. I’m a renter. Does my landlord’s insurance cover me?

A. No. The landlord’s policy covers only the building. Protecting your belongings is up to you. It can be done with renter’s insurance.

*

Q. Will everything in my house be covered by insurance?

A. Probably not. Although most standard items are covered up to policy limits, there are a number of things that are usually not insured unless you’ve purchased a special rider or endorsement to specifically cover them. Examples include jewelry, furs, high-value camera and gun collections, coin or stamp collections, and personal computers used in a home office.

Smoke, water and wind damage related to a fire will be covered in most cases.

Landscaping and cars are usually not covered under homeowners’ policies.

*

Q. The fires didn’t touch my neighborhood this time, but what if I’d like to improve my protection for the future?

A. Make sure that you understand what your policy does and doesn’t cover. Cash value policies pay only the current fair market value for your possessions, so a 10-year-old suit might be worth only a fraction of what you’d have to pay to replace it today. On the other hand, guaranteed replacement cost coverage for the contents of your home would get you a new suit.

State law requires insurers to explain these differences, but it’s worth taking another look at your policy.