Reimbursement Option for California Fire Victims

California Insurance Commissioner Steve Poizner reminded residents and businesses who have been evacuated from the Summit Fire in Santa Cruz that residents may be eligible for reimbursement for additional living expenses due to a mandatory evacuation and businesses may be eligible for reimbursement due to lost business.

"Consumers and businesses that pay their premiums every month should take advantage of the insurance coverage they have purchased when they need it," said Poizner. "Many residential home insurance policies cover some additional living expenses due to mandatory evacuations lasting more than 24 hours. Similarly, if businesses suffer an interruption caused by a mandatory evacuation, closure of roads, etc, they should check with their agent to see if they have coverage for this loss of income or additional expense."

Many residential homeowners insurance policies cover what is known as ALE, or additional living expenses. This permits you to maintain your normal standard of living by covering the increased living expenses incurred as a result of damage caused by the fire or a mandatory evacuation. Typical items included in ALE coverage are extra food costs, increased housing costs, furniture rental, relocation and storage costs, telephone installation and extra transportation costs to and from school or work.

Those who need help with their fire-related insurance issues or any insurance issue can contact the Department of Insurance's help line at 800-927-HELP.

The Santa Cruz County wildfire began late last week and destroyed close to 30 homes, forcing thousands to evacuate.