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Home My WebLink About1994-04-28 - AGENDAS - ADJOURNED SPECIAL (2)CITY OF SANTA CLARITA CITY COUNCIL ADJOURNED MEETING WITH CALIFORNIA DEPARTMENT OF INSURANCE Thursday, April 28, 1994 7:00 P.M. Santa Clarita Valley Boys and Girls Club Gymnasium 24909 Newhall Avenue Santa Clarita, Ca. 91321 AGENDA CALL TO ORDER ROLL CALL FLAG SALUTE OPENING REMARKS OPENING REMARKS PUBLIC PARTICIPATION MAYOR PEDERSON COMMISSIONER GARAMENDI Commissioner Garamendi will facilitate a discussion of insurance related issues and questions stemming from the January 17, 1994, Northridge earthquake. A panel of insurance claims experts will respond to local citizen concerns. RECOMMENDED ACTION: Discuss and respond concerns of the local citizens. CLOSING REMARKS CLOSING REMARKS ADJOURNMENT rndagn ad)428.dmg, COMMISSIONER GARAMENDI MAYOR & COUNCILMEMBERS Gharamendi Meeting Notes Meeting called to order: 7:11 P.M. Roll Call: 7:12 P.M. Council Person Boyer - Present Council Person Heidt - Present Council Person Smyth - Present Mayor Pro Tem Darcy - Present Mayor Pederson -Present DISCUSSION Gharamendi Problems: • Insurance adjustors out-of-state. • Out -of -area adjustors left before people knew their status. • Low -balling is illegal; proper numbers must be given; he wants to watch this closely. •. 900 Complaints since earthquake. • When $ amount is finally reached, next step is a check being cut. • $200,000+ in claims. • Originally he said one-party checks only. Would have caused your check to be put in special account while your mortgage company and you duke it out in court; so he took a different tact and 2 -party + 3 -party checks were issued to expedite payments; avoids court. • Nettie Hoge will hold a seminar after this meeting to help people with this issue. • He expects insurance companies to pay quickly and deal with citizens fairly. • Discussed literature and phone # for consumer hotline: 1 -800 -927 -HELP. Citizen Ouestions and Gharamendi Answers • Two Widely different numbers being quoted by insurance adjustor and citizen's contractor. Must not be low -balling. • Same insurance company, but different deductible quoted by different agents. This is an immediate red flag, he says. Should be uniformity in the way in which a company handles its business. • New law says specific options available - 4 different kinds of homeowner policies. Citizens are supposed to be informed by their agents, he says. Barry Zide • Earthquake insurance coverage is excluded in most homeowner policies. • If you buy an earthquake endorsement, it includes higher deductibles, but is - guaranteed replacement coverage. • If you do not have a disclosure, you cannot be sure what coverage you have. • They are in the process of standardizing insurance. • Policy declaration page (first page) is the information page, including structural damage, personal liability, and medical.. • Policy peril is the cause of a loss. Names of perils are specified in the policy. • Claim settlement methods are actual cash value, replacement cost, and guaranteed replacement cost. • Earthquake coverage can be bought as an endorsement to a policy, or as a separate policy. There is always a deductible. • In auto insurance, comprehensive will cover earthquake damage. Richard Van Matre • Coverage begins and ends with the contract. You need to know that contract. • Document everything you do in this process, including conversations with adjustor and/or insurance company. • For additional living expense coverage, if your home is not livable, expenses must necessary, named person incurred, similar life style, and covered by insurance. • Keep daily accurate records during the repair period. • Option from adjustor is fair rental value method, rather than itemized in detail. • Include furniture. • Use agent to learn specifics of documentation. • Policy provisions are a) time period; can't collect indefinitely; shortest time to repair, replace or relocate, b) policy limit, and c) civil authorities. • Keep all receipts for reimbursement. anell Roy • Personal property include unscheduled items (clothing, etc.) and scheduled items (jewelry, furs, fine arts, musical instruments). • Condominium coverage includes roof, foundation, outside walls, and parking area which are joint/common areas covered by condo association insurance. • If policy is lost, you need to get a certified copy from insurance company or adjustor. • Don't dispose of debris until adjustor says to. • Get any extension in writing. • Don't release any document without a clear photocopy. • Prepare inventory for proof of loss with current replacement cost/value (depreciation). Richard Clemson • Read policy for Scope of Loss limits for buildings, garages, walls, and patios. • For a single deductible, once the limit is reached, the company starts to pay. • Specific deductible for each coverage - main dwelling, contents, other structures.. • Main structure - anything attached, such as patio. • Fences, decks, pools, sidewalks, satellite dishes, trees, shrubs, and plants are covered by percentage. • Debris removal is covered by percentage. • Scope of loss document describes in detail what was there BEFORE the damage. Your contractor/architect/other professional helps prepare scope of loss and reach agreement with insurance companies as to costs, etc.. Must adequately describe damage and be organized in a logical manner. • Research professionals before you hire them. • Get a certificate of insurance. • If item not in scope of loss, you won't get paid for it. • You don't have to agree to any scope of loss if it doesn't describe the damages accurately. Cindy Ossias • Statutes in CA insurance code addresses unfair practices, such as failing to` respond promptly and low balling. • Regulations in Title 10 - CA Code of Regulations. • From whom do you get assistance on a claim? a) public adjustors - get percentage of your settlement for helping, and b) private attorneys - insurance company could hire a lawyer, too. Fees/services negotiable. You can cancel agreement within 72 hours. • CA Dept. of Insurance, Consumer Services Division, investigates complaints and helps settle disputes. • Commissioner not authorized to seek money; he seeks justice for your claim and goes against poor practices. Rick Baum (summaryl • CA Dept. of Insurance is authorized to replace only what was there. • Don't sign off on check unless satisfied. Adjournment