TL;DR 

Notes Insurance Expert Live Q&A – Sunday 1/19

Host: iO Tillet- Wright, wildfire survivor and activist 

https://www.iolovesyou.com/ 

Panel: Chris and Cameron Mooney, Public Adjusters, Insurance experts. https://tugboat.claims/pages/wildfire 

Q: What is a public Adjuster? 

● Roles of an adjuster: The only people who should be working on your claim are insurance adjusters, 

● When it comes to your insurance company adjusters, there are various types of adjusters. 

● A public adjuster is hired by INSURED, as opposed to by your insurance company. 

TIP: Public Adjusters are not allowed to solicit by law right now. If anyone is doing this, step away. 

Q: When should one hire a public adjuster? 

● People who should hire a public adjuster are people who NEED assistance on the claim. 

● Also, further on down the claim, a public adjuster can be helpful if you have “hit a wall” of coverage, they can help you potentially get more. 

● 2 questions will be asked of you by a Public Adjuster: 

○ 1. Is the claim complex enough for a PA to be useful? If it's a wildfire, the answer is yes. 

○ 2. Is there financial room in that claim? 

● No one should take a fee from your living expenses. 

● Everything is a conversation until there is a signed document. 

TIP: Print out your insurance policy, get familiar with it. Know it. If you can't do this, maybe hiring someone is good for you.

Advice: Your first phone call will be from your insurance company. Any time your adjuster is telling you something, get as much clarification as possible. ● Even adjusters can be inaccurate, they are working quickly. 

● They may be speaking to different “buckets” or types of coverage. ● Be specific about where from your policy the $$ is coming, which “bucket” ● Most advances are being paid from Content coverage. These do not require receipts. 

● Don't commit to anything right away, you do not need to. 

● Take notes, get names, make sure you understand.  

● “I’m not sure” or “I don't know” is an OK answer at any time. 

● If you aren't confident in the answer, don't answer. Answers have consequences. ● Questions are generally about exclusions, not coverage.  

TIP: Go to https://www.iolovesyou.com/postfireassistant for a resource of a vetted Executive Assistant to help you and all your admin needs when working through your claims. 

Spreadsheets, logs, all done by humans. They can also help file state tax relief forms. 

Q: How do I know if I am Underinsured? 

● Insurance Coverage is usually covering for Square footage of home you HAD. Not your dream home you would like to build. 

● $400-$700 per square foot x your square footage is a standard formula to understand how much you will need roughly to rebuild. 

● If your coverage is less than that answer: you are underinsured. ● FEMA or state offerings can cover the gap 

● You can get a free policy review to determine if you are under insured. 

Something to understand: Main Buckets of Coverage 

1. Coverage A: Dwelling Coverage. Home, no other dwellings like sheds or guest houses. This covers the cost to rebuild the house. Nothing inside it, like your belonging. “If it's attached to the house, its dwelling coverage” 

2. Coverage B: Other structures. Sheds, fences, pool, pool equipment, deck (not attached) 

3. Coverage C: Personal property or contents. The things inside your home. Furniture, appliances, toys, belongings, personal property. State Farm and some others switch coverage B and C. 

4. Coverage D: Additional living expenses (Additional Living Expenses) or Loss of Use coverage. This is the most common area of underinsurance.

Q: What do you do if you are underinsured? What recourse or rights do we have? ● FEMA can help with this, look to them to close this gap, not insurance companies. 

● You want to calculate about 2 years (24 months) of much you would need. This is an estimate. 

● Look at the ALE (Additional Living Expenses) amount, take that amount and divide by 24 (for 2 years) 

● .Most policies only pay ALE (Additional Living Expenses) for 12 months, however, CA is requiring insurance to cover 24 months. 

● Don't waste your time fighting for additional coverage in this area, you likely won't get it. 

Q: What is your advice for being given a lump sum from insurance for living expenses? 

● This could be advantageous because landlords/Air BNB, or any lease givers may give better deals on the rent costs for longer periods of time. 

● “Any time insurance offers you money, take it” 

● Unless you sign something that says “I will not ask for any more money” you can always ask. 

● The national spotlight is on California and LA right now, take the funds offered. ● Getting $$ as soon as possible puts the insured in control. 

● You do not have to provide receipts to get to your limits. 

Advice: What to do independently about the types of contents inside your home (your belongings and how much they are worth). 

● You will be asked about the # of rooms and types of things in those rooms. ● Lump sums sometimes work out in your favor. 

● If you provide a # of rooms and the contents, and don't reach your limit, then you can make a list of things to get to your limit. 

● Additional way: create a contents list. You should not be required to give a super detailed list. You can be general with most things and give a separate line item for very expensive items. 

● Do this as soon as possible so you can remember best, every little thing builds up. 

● THe panelists will share an example of a successful list. 

● CA MUST give you 30% of your coverage A limit of your contents coverage up front. 

● Insurance companies use your dwelling amount to calculate a lump sum. Its not coming out of your “rebuild” money, it's coming from your personal property “bucket”.

● You can find help with templated letters to advocate for more. 

Topic of concern: The most complex to negotiate can be homes that are standing but not completely burned down. 

● What is considered smoke damage? 

● CA Fair Plan is different. Ash and soot is not covered in that plan. Smoke is. ● You can hire an industrial hygienist to help you clarify the difference between smoke and ash and soot. 

● Smoke claims may not receive as much attention as claims for burned down homes. 

● Establish that THERE IS smoke damage. This means SMOKE IN YOUR HOUSE. Its that simple. 

● “What is damaged” will be the biggest question in your claim. 

● You will have to get your contents either cleaned or replaced. 

● Replace mattresses and pillows. Cushion and porous items MUST be replaced. Push back on your insurance if they wont replace those. There are hazardous chemicals inside. They are not safe. 

● Vendors likely work for insurance companies. Find a neutral party. 

TIP: Make sure to understand what the incentives are of everyone working on your claim. No one has your best interest in mind besides YOU or someone you hire. 

Q: In terms of debris removal, what should we agree to? 

● Generally, answers on this topic are individual. 

● Find out how much coverage you have for debris removal. 

● Search the phrase “Debris Removal” in your policy. 

○ It is usually 5% of Coverage A 

● It's generally better to take assistance from FEMA or state on this. ● Look out for keywords for “Extension on coverage” and “Exclusion” when it comes to debris removal. 

Advice: Best Practices when working with adjusters of any sort, and how to help others (as in family members or neighbors): 

● Your insurance adjuster is a person, or several people, treat them with respect. ● There are always dynamics at play, adjusters are human. 

● Assume that you are the advocate for your claim. Not them. 

● How do YOU want to be treated? You need to drive the process. ● Try not to get contentious.

● Be kind, to start, getting assertive later if needed. 

● They want to get your claim paid, but you want to get everything out of your policy. 

● Helpful language: “What other information would you need from me to get more from my policy” 

Advice: Guidelines for Renters: 

● All you are insured for as a renter is your Contents and ALE (Additional Living Expenses) 

● You are likely underinsured unless you have proof of expensive contents/belongings. 

● Find pictures of your most high cost items (maybe in the BG of snapshots you have) 

● If your dwelling is being claimed as a total loss, you can still file for your items. ● Get familiar with renters advocacy groups. 

● Your property is YOUR property. 

● If you bought your own appliances or put money into your dwelling, understand and communicate this. 

More on ALE (Additional Living Expenses) and Loss of Use coverage: ● Can you move out of state or country? Yes! 

● Generally, there is no language that says where you can spend your earned resources. 

● Your adjuster may not like it, but it is within your rights. 

● Find 2 or 3 comparable properties on Zillow (furnished and pet friendly if you have a pet) to prove how much it costs to rent in your area. 

● Ask for a lump sum x24 for that property. 

○ To be “incurred” means you have already committed or paid for something. You might need a lease agreement to prove something is incurred. 

Q: What about a home that is standing that is surrounded by homes that burned down? 

● There is a hard date to get debris removal done, but if debris is being removed around you, you are still seeing these chemicals move around and into your home. 

● It is not an easy negotiation to have in this scenario. 

● Get a doctor's note to say you can not return to this home, it is unsafe. This will make insurers liable. 

● There are articles that will be shared on this issue.

● Chemicals after a fire are hazardous, you should not be returning to an unsafe home. 

Q: Does an insured have to use a template from the insurer to document items? ● NO. You can do a simple list. 

● Age of items, condition of items is a must. 

● In CA, the age of an item is what you say it is. 

● Explanation of “Depreciation”: If you buy a pencil for $1 and use it half way down; The insurance company will only give you .50 cents. 

○ You will only get that .50 if you buy new items and show receipts. ● DO not lie, do not be fraudulent. 

Q: If I am staying with friends/family and not paying rent, what am I required to provide for insurance? 

● Laws are not different. 

● The point is, if you want that person to be reimbursed, you need a lease agreement. You can make a simple one with friends/family. 

● Write up an agreement between you and the friend or family member ● You may get an upfront payment of 1 or 2 months and you would need to prove that you spent it on rent/living expenses. 

● Do not lie, do not say you are staying somewhere you are not staying. ● You can not profit off your own insurance claim. 

● If you have your own LLC it can be tricky renting from yourself. 

TIP: Your insurance company also has rights. Can research and find out if you are representing yourself correctly. They can do an EUO (Examination under oath) and ask for records etc. You may need an attorney. 

Resources: 

Pro Bono Service from Mooney Brothers: tugboat.claims/pages/wildfire Resource: UnitedPolicyHolders.org