News: 2007 Press Release

SACRAMENTO - With the 3,100-acre Angora Fire contained and the rebuilding process moving forward, today Insurance Commissioner Steve Poizner urged disaster survivors to take steps to protect themselves from further loss by following some basic guidelines and making use of numerous, no cost resources.

The Angora Fire destroyed at least 254 residences and 75 outbuildings, and damaged at least 17 residences. Structure loss estimates are currently $141 million.

To date, approximately 350 insurance claims have been confirmed. Initial damage assessments indicate that 78 percent of residences are insured, and 85 percent of the destroyed homes were primary residences. Residents and insurance adjusters continue retuning to neighborhoods on a limited basis.

"Experience has taught us that scam artists are drawn to disasters like bees to honey," stated Commissioner Poizner. "However, there are some rather simple things Tahoe residents can do to avoid being burned twice."

California Department of Insurance (CDI) staff is prepared to assist fire survivors at the Disaster Assistance Center, which is located at the Lake Tahoe Community College (1 College Drive, South Lake Tahoe; just off Al Tahoe Blvd.). The major homeowner insurers also have assistance booths at this location.

CDI also has fraud investigators already working the area to protect fire survivors.

The most common fraud that occurs in the aftermath of a disaster generally involves price gouging, offers of debris removal, and fraudulent charitable solicitations. It is important to keep a sharp lookout for predators playing on the emotions of those stricken by disaster. If fraudulent activity is suspected, please contact the CDI at 800-927-HELP.

After a loss has occurred:

• Contact your insurance company immediately to report your loss. Follow the instructions given to you by claims personnel. Ask questions if you do not understand your adjuster's instructions. From the beginning, keep a log of the names of the people you speak with along with dates, times, and a summary of the pertinent points of each conversation.
• Act prudently to prevent further loss to your property. Insurance policies may not cover ensuing damage if you have not taken reasonable steps to protect against subsequent property damage.
• Take pictures documenting damages.
• Do not rush into repairs or rebuilding without first considering all your alternatives.
• Ask your insurance agent or company representative to help you with your claim, and don't be afraid to ask questions. Your insurer provides an adjuster at no charge to you. If you decide to work directly with your insurer, you still have the right to hire a third-party professional (e.g., public adjuster or lawyer) to help you.
• If you hire a public adjuster or attorney to help you with a claim, be certain that the adjuster is licensed and that the lawyer is in good standing. Public adjusters and lawyers will usually require a percentage of the claim settlement for their services. It is important that you understand what services are being provided and the fees that will be charged. Ask your friends, relatives, or business associates for the names of well-regarded professionals in your community.
• • To verify a public adjuster's license, call the CDI.
  • To learn about attorneys and standards for lawyer-client fees, or to file a complaint against an attorney, contact the California State Bar at 800-843-9053.
• Do not repair or replace your loss without first getting instructions from your adjuster, since your insurer's visual inspection of your loss may be necessary before repairs begin.
• Do not throw away damaged property until your adjuster advises you it is all right to do so.

Hiring a Contractor

After a disaster, sales people often go door to door, canvassing neighborhoods to generate new business. While many of these people are honest and reputable, some are not. Below is a recommended list of steps to take to protect against unscrupulous operators posing as legitimate contractors:

• Call the Contractors State License Board at 800-321-2752 or visit their Web site at www.cslb.ca.gov to check a contractor's license number or get further information on home and property repairs.
• Deal only with licensed contractors. Ask to see the contractor's "pocket license," together with other identification. If the person claims to be representing a contractor, but can't show you a contractor's license or home improvement salesperson registration card, call the contractor and find out if the person is authorized to act on the contractor's behalf.
• Do not do business with a contractor who does not carry the appropriate insurance coverage. If the contractor is not insured, you may be liable for accidents that occur on your property. Ask the contractor if he/she carries general liability and workers compensation insurance. Request a certificate of insurance (COI) from the contractor that shows the name of the insurance company, policy number and policy limits the contractor carries. Contact the insurance company directly to verify information on the COI.
• Call the insurance adjuster assigned to your property damage claim and ask the adjuster to make an estimate of the damage and the probable cost to repair. This will provide you with a benchmark estimate prepared by a professional that you can use when negotiating with contractors.
• Don't rush into signing a contract. Collect business cards, interview several contractors, and request multiple bids for comparison. Make sure to read the fine print on all estimates and contracts.
• Beware of building contractors that encourage you to spend a lot of money on temporary repairs.
• Hire local, licensed contractors when possible, as it is easier to deal with a local contractor if problems develop. However, since it may not always be possible to deal with local contractors in the aftermath of a disaster, be particularly careful to thoroughly check references for out-of-town contractors.
• Get everything the contractor discusses in writing. Also, if changes or modifications occur in the contract terms, they should be acknowledged by all parties in writing.
• Never sign a contract with blanks that have not been filled in. Unscrupulous contractors may fill in the blanks later with unacceptable terms.
• Never pay a contractor for the entire project in advance or before the work is completed.
• • California law requires that the amount of the down payment for any one improvement project, other than for construction of a swimming pool, may not exceed $1,000 or 10% of the contract price, excluding finance charges, whichever is less.
• Be especially suspicious of door-to-door sales people who make unrealistically low estimates, refuse to leave a contract overnight, or try to sell their services by playing on your emotions.
• • Federal law requires a three-day "cooling off " period for unsolicited door-to-door sales of more than $25.00.