Department of Insurance Representative Speaks During PPCC Meeting

By LILY TINOCO | Assistant Editor

Pacific Palisades Community Council hosted a representative from the California Department of Insurance during its Thursday, April 24, board meeting, addressing concerns related to fire recovery and insurance matters.

Outreach Analyst Rob Obedoza delivered a presentation from the department—covering a range of topics, as well as offering updates and advice to meeting attendees.

As of March 5, Obedoza said 27,872 claims had been paid, totaling $12.1 billion. The average claim payout was $435,000.

When dealing with adjusters, Obedoza advised Palisadians to ensure every adjuster they are working with is properly licensed and to keep a documentation trail.

“Ask questions, ask why something may not be covered,” Obedoza said. “Ask for it in writing. If a company changes adjusters, make sure to keep documentation.”

Obedoza said documenting agreements helps hold insurance companies accountable.

If Palisadians are being offered low claim payments, Obedoza said, nobody should be forced into accepting an amount.

“In many cases, the first payment is called the ‘undisputed amount,’ which is the minimum amount they are required to pay you,” he explained.

Obedoza said to advise the Department of Insurance if there is pressure to accept a payment.

When considering rebuilding, building or buying elsewhere, Obedoza explained that after a total loss is declared, insurance companies are “required to pay the full replacement cost benefits, which must include any building code upgrade and extended replacement costs associated with rebuilding the insured property,” even if the individual chooses to rebuild or buy a property in another location.

“Value of land cannot be deducted from this settlement,” he said. “Make sure you advise the insurance, and your lender … if you are considering this. Generally, once you identify the property and go into escrow, the insurance company will pay the amount it owes. You would only be eligible up to the full replacement costs owed if you actually spend that amount in rebuilding or buying property in another location.”

If an individual has a mortgage, he advised to speak with the lender to discuss payment and escrow.

In relation to emergency actions, insurers are required to continue providing Additional Living Expenses coverage until wildfire survivors’ homes are deemed habitable as a result of fire debris, ash and other hazardous materials.

Obedoza also explained that a one-year nonrenewal moratorium was declared for residential policies within or adjacent to wildfire perimeters. The insurance moratorium expires January 6, 2026.

In a total loss, law guarantees two automatic renewals, and the insurance company is required to work with the individual to determine any adjustments in coverage, Obedoza explained. If an individual has a lender, they are required to have no gap in coverage.

Obedoza also explained that insurance companies were unable to properly assess risk in California before and were void of using modern tools that had been used across the country—but they are being allowed to do that now. Obedoza said these models are currently under review by the Department of Insurance, and they should be finalized in June.

“The commissioner expects more policies in those areas by early next year, as part of the agreement,” he said. “But … insurance companies are now allowed to charge .. reinsurance costs.”

Obedoza explained that reinsurance costs have been “skyrocketing” and rates are expected to increase.

“In order for them to write these policies, they are going to be charging what it costs for them to assess the risk properly,” he said. “There are going to be options available. It’s going to be more expensive, unfortunately … The goal long term is, the more options that are available, the more competition there is in the market. [That] hopefully drives prices down.”

Obedoza said the Department of Insurance plans on hosting more community-level webinars in the coming months, with the next one slated for June.

For more information, visit insurance.ca.gov, or call 1-800-927-4357 to reach a consumer hotline for insurance complaints, questions and assistance.