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Many homeowners affected by the wildfires may not receive the insurance reimbursement they expect

When homeowners lose their property to spreading Southern California wildfires, the last thing they need is to get burned by insurance agencies.

Although the insurance industry says it is doing everything it can to assist customers with their claims, insurance watchdogs say many fire victims won’t receive the amount they had anticipated.

With flames threatening the houses of some UCLA faculty and students’ parents, the ill effects of unmatched property reimbursement could hit close to home.

“In cases where compensation is anywhere over $50,000, insurance agencies treat you like an enemy instead of a friend,” said Amy Bach, executive director of United Policy Holders.

After working with thousands of claims-makers over the past 12 years, Bach said most homeowner insurance holders have less coverage than they think and have difficulty getting the insurance company to pay quickly.

California Insurance Commissioner John Garamendi gave a grim forecast Tuesday that echoes Bach’s words.

“I am absolutely certain that two weeks from now there will be many frustrated and angry policyholders in Southern California because they can’t understand what is and isn’t covered,” Garamendi said.

As the dollars of damage from the numerous Southern California brush fires – from Santa Barbara to the Mexican border – climb into the billions, many insurance agencies insist they are trying to meet the needs of all their customers.

“The adjusters are here to help victims get back on their feet,” said Bill Mellander of the All State National Catastrophe Team. “In an event like this, our best customer service helps keep our customers our customers.”

The extent of the coverage depends on the particular policy the homeowner purchased.

But according to the California Department of Insurance, many homeowners are unaware of the terms and conditions of their insurance policies and are often uninsured.

The other major problem many homeowners face when filing insurance claims is that they have not recently updated their insurance to account for increased value – often due to construction, according to the Department of Insurance. As new code requirements emerge, the price of replacing a home can increase even though the customer’s rates do not.

Bach said it is the broker’s responsibility to update a policy when the value of a house increases. Both Bach and Mellander stressed the importance of strong communication between the customer and the agent in order to ensure adequate coverage.

“Customers must make it clear to the agent that they expect them to stay on top of this because it’s they’re job,” said Bach.

Mellander said maintaining dialogue with brokers is the “most important decision made” by homeowners in the process of fully insuring their property.

When shopping for a policy among various competitors and prices, insurance agencies and consumer watchdogs advise customers to consider a broker they can trust, rather than the one who offers the least expensive rate.

With reports from Bruin Wire Services.