LA Fires
Feb. 25, 2025
The Law of Rebuilding LA Episode 5: Underinsurance concerns and rising rebuilding costs
In Episode 5 of "The Law of Rebuilding LA," attorney Michael Bidart reveals why many homeowners discover too late that their insurance coverage falls dramatically short of today's soaring rebuilding costs, and explains the legal obligations insurance companies have to properly set and update policy limits.
Welcome to Episode 5 of "The Law of Rebuilding LA," where the Daily Journal continues examining insurance issues related to LA's fire recovery process.
In this episode, Contributing Editor Howard Miller and Michael Bidart of Shernoff Bidart Echeverria LLP address a critical question facing homeowners: Are your insurance policy limits sufficient to rebuild in today's market? With construction costs soaring, many policyholders discover too late that their coverage--even with replacement cost provisions--falls dramatically short of actual rebuilding expenses.
Listen as Miller and Bidart explore:
- The rules regarding insurance coverage limits and policyholder's choice
- How case law has evolved when insureds rely on carriers to set appropriate limits
- California Code of Regulation provision requiring insurance companies to properly evaluate homes when setting limits
- The insurance company's obligation to annually review and update coverage limits
- How "extended coverage" provisions may not adequately address surge pricing after widespread disasters
Stay tuned for the next episode of The Law of Rebuilding LA, which will feature Peter Klee, a partner in Sheppard Mullin's Business Trial Practice Group in the firm's San Diego office.
Missed an episode of The Law of Rebuilding LA? Catch up here.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390
Send a letter to the editor:
Email: letters@dailyjournal.com