Auto Club Cuts Insurance Rates for Total Loss Victims Of Wildfires.

Feature Editors/Business Editors

LOS ANGELES--(BUSINESS WIRE)--Nov. 21, 2003

The Auto Club's affiliated Interinsurance Exchange has gained state insurance department interim approval for its emergency request to reduce insurance rates for its policyholders whose houses were destroyed by the recent Southern California fires. Also, the Exchange has postponed bills and provided a grace period for late payments to all policyholders that weren't able to receive mail due to the fires.

"We expect many of our policyholders' families will be displaced while they rebuild their homes, and we felt that they shouldn't be paying the total premium on a house that isn't there," said Cortland Ray, vice president of insurance claims. "We want to get them back to normal as soon as possible. We provide Guaranteed Replacement Coverage for homes built after 1950. So if the home was burned down, we'll pay to replace it."

"Also, the last thing we want them to be worried about is paying the premium on time if they've had difficulty getting mail, so many policyholders in the affected areas have had an extended grace period for payment."

The approved rate filing covers the following:

-- Up to 35% premium reduction for insured homeowners that have a

total loss while the home is being rebuilt. This premium

reduction will be retroactive to the date of loss.

-- Same coverage for personal property located at a temporary

residence as if it were located at the insured homeowners'

residence.

-- $5,000 of theft coverage for building items owned by the

insured while located on the residence premises.

-- Extension of Liability coverage to the policyholder's

temporary living location while the rebuilding is being

completed.

The Exchange has received fire-related claims for more than 500 homes and 275 vehicles from Ventura to San Diego County. Most of the homes received partial damage. About 13 percent were totally destroyed.

"We didn't wait for policyholders to contact the Exchange," Ray added. "We've contacted every policyholder in the areas affected by the fires to determine if they need claims assistance."

As homeowners begin the rebuilding process, the Auto Club offers the following tips:

Prevent More Losses. If the structure is safe to enter and after you have completed taking an inventory, begin the clean-up process and protect against additional losses. Cover exposed areas that may be subject to additional damage from the elements. Remove damaged furniture, appliances and rugs. Document all the repairs you made and keep receipts for tarps, plywood and other reasonable and necessary expenses. These expenses may be reimbursable under your insurance policy.

Be wary of unfamiliar contractors. Deal with a contractor you know, one that has been recommended by the insurer, or someone a good neighbor or a close friend knows and has dealt with in the past.

Avoid contractors and clean-up services that solicit you or knock on your door unannounced. Many are typically scam artists. Require written estimates from at least two reputable contractors and insist on references and California licenses. Don't pay in advance for repairs. Agree to a schedule of payments with a large percentage of the bill due only after all repairs have been completed to your satisfaction.

The Automobile Club of Southern California, the largest affiliate of the AAA, has been serving members since 1900. Today, the Auto Club's members benefit by roadside assistance, insurance products and services, travel agency, financial products, automotive pricing, buying and financing programs, automotive testing and analysis, trip planning services and highway and transportation safety programs. Information about these products and services is available on the Auto Club's Web site at www.aaa-calif.com.