Honest broker helps ensure best service

When homeowners lose their property to spreading Southern
California wildfires, the last thing they need is to get burned by
insurance agencies.

Although the insurance industry says it is doing everything it
can to assist customers with their claims, insurance watchdogs say
many fire victims won’t receive the amount they had
anticipated.

With flames threatening the houses of some UCLA faculty and
students’ parents, the ill effects of unmatched property
reimbursement could hit close to home.

“In cases where compensation is anywhere over $50,000,
insurance agencies treat you like an enemy instead of a
friend,” said Amy Bach, executive director of United Policy
Holders.

After working with thousands of claims-makers over the past 12
years, Bach said most homeowner insurance holders have less
coverage than they think and have difficulty getting the insurance
company to pay quickly.

California Insurance Commissioner John Garamendi gave a grim
forecast Tuesday that echoes Bach’s words.

“I am absolutely certain that two weeks from now there
will be many frustrated and angry policyholders in Southern
California because they can’t understand what is and
isn’t covered,” Garamendi said.

As the dollars of damage from the numerous Southern California
brush fires ““ from Santa Barbara to the Mexican border
““ climb into the billions, many insurance agencies insist
they are trying to meet the needs of all their customers.

“The adjusters are here to help victims get back on their
feet,” said Bill Mellander of the All State National
Catastrophe Team. “In an event like this, our best customer
service helps keep our customers our customers.”

The extent of the coverage depends on the particular policy the
homeowner purchased.

But according to the California Department of Insurance, many
homeowners are unaware of the terms and conditions of their
insurance policies and are often uninsured.

The other major problem many homeowners face when filing
insurance claims is that they have not recently updated their
insurance to account for increased value ““ often due to
construction, according to the Department of Insurance. As new code
requirements emerge, the price of replacing a home can increase
even though the customer’s rates do not.

Bach said it is the broker’s responsibility to update a
policy when the value of a house increases. Both Bach and Mellander
stressed the importance of strong communication between the
customer and the agent in order to ensure adequate coverage.

“Customers must make it clear to the agent that they
expect them to stay on top of this because it’s they’re
job,” said Bach.

Mellander said maintaining dialogue with brokers is the
“most important decision made” by homeowners in the
process of fully insuring their property.

When shopping for a policy among various competitors and prices,
insurance agencies and consumer watchdogs advise customers to
consider a broker they can trust, rather than the one who offers
the least expensive rate.

With reports from Bruin Wire Services.