Victims of the recent Los Angeles fires are calling on Insurance Commissioner Ricardo Lara to urge insurance companies to quickly release all Extended Coverage Insurance money. He needs to request that insurance companies exceed their current legal obligations because of this national disaster. 

***About Extended Coverage Insurance: Your home insurance policy’s dwelling coverage limit is based on how much it would cost to rebuild your home from the ground up at today’s prices. This does not factor in dramatic rebuild cost increases after natural disasters or the above average inflation we are experiencing. As a result, many homeowners end up underinsured. Extended replacement cost coverage is an additional coverage/expense some homeowners have purchased to help defray these costs. ***

Given the current state unprecedented demand for construction workers and materials, prices are guaranteed to rise. *In addition, IBHS research shows the cost of building a home with fire resilience materials adds on another 5% in costs more than a traditional build.* Due to all these increases, 100% of victims will require use of their extended coverage. Under normal circumstances, policyholders must prove need prior to distributions. However given the scope of the tragedy the need is unquestionable.

Distribution of extended coverage immediately will allow those who have suffered catastrophic losses to move forward with their lives without additional hardship. In addition it will ultimately save insurance companies money because the payout is 100% going to happen under these extraordinary circumstances, and this way the companies won't have to spend time, money and resources to estimate, compare prices and haggle with policyholders.

***https://www.policygenius.com/homeowners-insurance/what-is-extended-replacement-cost/

* https://abc7.com/post/camp-fire-survivors-paradise-rebuild-resistant-homes-insurer-wants-reward/15907641/