Residents affected by the ongoing threat of a dangerous chemical in Orange County, California, may be able to recoup money spent due to evacuation orders, experts say. However, there may be other questions worth asking your insurance company as the incident unfolds.
Thousands of people remained in limbo for days as officials feared a major chemical leak or explosion at Garden Grove, an event that prompted a declaration of emergency and a lawsuit from Gov. Gavin Newsom. The far-reaching evacuation orders came after officials said they responded to reports of vapors being released from a large tank containing an industrial chemical at the site of GKN Aerospace in Garden Grove on May 21.
Orange County Fire Authority interim Fire Chief TJ McGovern said on May 25 that, although progress had been made in preventing a large blaze, officials still had to mitigate the fire and “concerns of a very small explosion” and the potential for spread. About 16,000 people are under evacuation.
Had to evacuate? Your insurer may cover your costs
Many policies have additional living expense coverage, known as ALE or loss of use coverage, which can help pay for costs such as hotel stays and temporary housing; Food expenses increased; transfer and storage costs; and laundry, transportation, and other essential living expenses, said California Department of Insurance spokesman Gabriel Sanchez.
“Coverage may apply when a mandatory evacuation order prevents people from returning home safely, even if there is no direct physical damage to property,” Sanchez said in an email.
However, according to Carmen Balber, executive director of Consumer Watchdog, it’s possible that a policy will have “some kind of daily limit” — which policyholders should check to see.
While renters insurance also covers loss of use, the amount available to a tenant is typically less, Balber said. That’s because it ultimately becomes a percentage of your policy limit, which is smaller when you insure your property than the entire building inside a residence, she said.
Residents should contact their insurer to find out if their policy includes ALE or loss-of-use coverage; What documents are required for reimbursement; whether evacuation orders or public health advisories trigger coverage; And when the benefits might be available, according to Sanchez.
“Insurance companies don’t always make it easy to get reimbursed for your expenses,” Balber said. “It’s really important to document everything, and notifying the insurer as soon as possible starts that process right away.”
What if my residence needs cleaning after a disaster?
According to Andrew Whelton, a professor of environmental engineering at Purdue University, in any spill or fire, the “main concern” is about chemicals entering nearby buildings.
“Therefore, residences, commercial buildings, other industrial buildings and they have to be tested, disinfected and cleaned before people are allowed to go back,” he said.
Whelton said officials generally recommend that people turn off their air conditioning units to avoid outdoor pollution during these types of chemical events. This includes closing windows and doors, or even sealing them.
“Contamination can sometimes also travel through leaky buildings,” Whelton said. “And this is sometimes significant. The closer you are to the incident, the higher the levels of contamination found inside a building.”
You’ll have to test the specific chemicals you’re concerned about to know if they’re still there, Whelton said.
Protection against this type of incident may not be included in your policy, Balber said.
“It’s really all about reading the fine print on your insurance policy,” Balber said.
According to Sanchez, insurers may offer benefits related to temporary lodging or hotel accommodations; environmental testing or inspection; Cleanup or improvement efforts; and smoke, odor, or contamination removal services if contamination, smoke, or hazardous air quality makes a home unsafe to inhabit.
“Whether coverage applies depends on the specific terms of the policy and the circumstances of the loss,” Sanchez said. “A key issue in situations like this is whether local or state officials determine that the home is unsafe due to hazardous conditions. These determinations can play a significant role in initiating or extending temporary living expense coverage.”
Sanchez said those affected should ask their insurer:
- Will it perform environmental testing, and what contamination or remediation services may be covered
- Could professional cleaning or air filtration be worth it?
- How long will temporary housing benefits continue if the area remains unsafe
Have more questions? Do you face disputes in your claim?
According to Sanchez, people are encouraged to call the California Department of Insurance if there is a dispute or any uncertainty. The department’s number is 1-800-927-4357, or contact the department online at www.insurance.ca.gov.
Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reporting by Paris Barraza, USA TODAY. USA TODAY Network via Reuters Connect.