July 05, 2011
By: Jana Bell
State officials say new insurance regulation in California should reduce instances in which residents may not have enough home insurance for a particular incident.
Insurance Commissioner Dave Jones announced the regulation, which would provide more consistent ways for insurers to estimate replacement cost and value when determining insurance payouts. New training standards for insurance brokers and real estate appraisers would be developed, and new record keeping procedures established. Jones said the issue came to the forefront in recent months, when homeowners suffered significant property damage after wildfires and weren't able to pay for repairs due to inadequate homeowners insurance payouts.
"These regulations will go a long way toward ensuring that consumers who are victims of a disaster, such as a wildfire, are able to get the financial relief to rebuild their homes and their lives, while also doing much to ensure that homeowners are not underinsured," said Jones. "It's devastating enough to lose your house to a disaster, but not to receive adequate funds to replace it just adds insult to injury."
Wildfires can be problematic in California but have been particularly damaging in recent weeks for neighboring Arizona. That state continues to come to grips with multiple fires that have burned through hundreds of thousands of acres.
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