Most of the damage from the rash of wildfires ravaging Southern California will be covered under property owners’ homeowners and fire insurance policies, according to the National Associaiton of Independent Insurers (NAII).
Preliminary estimates indicate that insured losses from the wildfires will exceed $500 million, NAII spokesman Joseph Annotti said in a statement.
“The extent of coverage to rebuild homes, replace personal property, and cover additional living expense during reconstruction will be determined by the language in each policy,” Annotti said.
“All property insurance policies are not alike,” he added. “Basic fire insurance policies will cover rebuilding costs up to the policy limits, but may have limited coverage for living expenses and for replacement of contents. Most consumers purchase broader homeowners policies, which typically provide coverage for expenses incurred when policyholders are unable to live in their homes. In addition, most homeowners policies will pay the actual replacement cost of an individual’s possessions — rather than the depreciated cost — up to the policy limits.”
Meanwhile, the Associated Press reported that two major fires in San Diego County were threatening to merge. Exhausted firefighters were given the opportunity to rest in spite of the chance that any break in the battle could mean more homes burn.