Quality Claims Management: Many 2007 Fire Victims Still Have Not Been Able to Resolve Their Insurance Claims and Rebuild their Homes

Quality Claims Management Corp. has revealed that most of the homeowners whose property was destroyed or damaged in the 2007 Southern California wildfires have not yet been able to rebuild their homes.

"Out of the San Diego County residents who lost their homes in 2007, we have found that only about 1/2 of the homeowners have broken ground and started their rebuild process," says Ron Reitz, President of Quality Claims Management in San Diego. Most were underinsured.

According to United Policyholders, a non-profit with eighteen years of experience working with disaster survivors and educating the public on insurance issues and consumer rights, "After the 2007 wildfire in San Diego County, 75 percent of the victims found themselves underinsured by an average of $250,000," said UP's Executive Director Amy Bach. "Insurance money is the #1 thing people need to get back home after a catastrophic loss, but it often takes a lot of work to get paid in full."

According to Valerie Brown, Project Coordinator at RB United, a non-profit fire recovery center helping fire victims in San Diego County, "Another common issue we find in our area is the long negotiation that occurs between what the contractors say it will take to re-build the house - the scope of loss - and the amount of money that the Insurance company is willing to provide for rebuilding."

Another reason that many have not been able to rebuild is because the insurance companies originally "lowballed" the estimated amount it would take to rebuild. Low-balling often results when an insurer uses a computerized estimating program to come up with a low appraisal. When insureds receive a lowball estimate and realize it is not enough, they then must renegotiate with the insurance companies which often means bringing in legal professionals and public adjusters. This results in even more delays to the rebuilding process.

According to Reitz of Quality Claims, "We have found that it often takes two to three years for a claim to be fully settled. Once the insurance negotiations have been settled, it can take a year or more to have the home rebuilt and the family be able to move back in."

For more details about the rebuilding status of 2007 fire victims in San Diego, please check out the 2007 Fire Victim Status article.

Also see an article for homeowners to help ensure that they are not underinsured - How Do You Know if You Have Enough of the Right Kind of Insurance.

United Policyholders (UP) is a non-profit consumer organization founded in 1991 that helps solve insurance problems and advocates for fairness in insurance transactions.

Located in Rancho Bernardo, California, RB United is a member of the Regional Community Recovery Team, a non-profit organization that provides a community resource for fire relief and recovery for residents of San Diego County. Funded by the San Diego Foundation, RB United is one of seven affiliated fire recovery centers which offer advocacy services and guidance for fire families to help navigate the path to recovery.

Quality Claims Management Corp. provides hazard claim recovery services to investors, mortgage servicers, homeowners and businesses.