These have been very difficult and trying days for many California families.

These have been very difficult and trying days for many California families. The news is showing stunning images of destruction and tent cities going up near Paradise, CA and images of families being displaced in Malibu and Northern L.A. Our thoughts are with all of the people who have lost family, friends, homes, and business establishments to the recent fires. At this point, many of you are wondering - What happens when your residential or commercial real estate is completely destroyed by a fire? In the case of mass property loss, the State Insurance Commissioner will typically step up with plans to expedite the normal procedures. Your insurance company will base your insurance estimate on the physical information it has on file for your property and its own internal costing numbers first. Insurance companies typically collect information about your property at the time the insurance policy is put into place. The insurable value of the property will be based on the replacement cost and will exclude the land value and typically often exclude any site improvements that were not destroyed. The partitioning of this value will be based on the appraised value of your overall property prior to the time the property was destroyed. The insurance industry in the State of California is highly regulated. If you have any concerns about how you are being treated during the insurance settlement process you will be able to turn to the State of California Insurance Board. If you plan to rebuild the local municipality will set up expedited construction approval. They are able to do this because the land use and density were previously established. The new construction requirements will typically stipulate modern fire-retardant materials, a buffer zone around the improvements, and in some instances specific landscaping requirements. The municipalities may require roadway expansions and require new evacuation routes be established. I personally know many families that have lost and rebuilt their homes in San Diego. I have been very impressed by how rapid these recoveries were once everyone was mobilized. #Fire #Insurance #RealEstate #Appraisal #CRE
http://www.insurance.ca.gov/0400-news/0100-press-releases/2018/release134-18.cfm