The Southland Firestorm: A Special Report : The Recovery : INSURANCE : Attention to Detail Crucial in Filing Claims

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 California and the United States, 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 if my insurance papers were lost in the fire?

A: “A sample of your generic type of policy isn’t good enough,” warned Bill Rake, president of Greenspan Co., a Los Angeles firm that represents insurance claimants on a contingency basis. “You want to see an actual reissue of your policy. It’s the only way to see what additional riders you have, how much your coverages are . . . It’s like entering into a very serious business deal. It’s unwise to do it unless you know the rules of the game. And the rules are set out in your insurance policy.”

Firms like Greenspan--called public adjusters because they represent individuals instead of insurance companies--are licensed by the state Insurance Department to deal with insurers on behalf of people who don’t want to do it themselves. While their fees are negotiable, their fee is typically 5%-10% or more of any settlement paid by an insurer.

Q: How do I decipher my policy and figure out where I stand?

A: Many policyholders aren’t aware of their rights under new guidelines that insurance companies must follow when processing claims. The guidelines were created last year by the state Insurance Department and may be obtained by contacting them directly.

“It’s difficult for most people to even understand their policy,” said Bill Rake. “But the insurance company’s representative will understand it, as well as the new regulations, and that creates an uneven playing field.”

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

A: State insurance regulations require your insurer to provide you with claim 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 about the claims adjusters I have seen walking around my neighborhood offering to help?

A: Public adjusters often go out to solicit business in neighborhoods struck by disaster. Rake recommends that homeowners check out an adjuster’s credentials with the Better Business Bureau as well as the Insurance Department. Adjusters are supposed to carry their state insurance licenses with them.

Meanwhile, teams of adjusters from your own insurance company probably are walking burned-out neighborhoods too. “They need to know where to get hold of you, which might be toughest of all if you don’t have a house,” said Gene Weisberg, a partner in the Los Angeles law firm of Cummins & White.

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 looters hit my house before I can move back in?

A: If there is anything left that can be salvaged, “you have an obligation to protect it, which could include hiring a security guard,” Gene Weisberg said.

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’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 renters’ insurance.