Placerville, CA asked in Insurance Bad Faith and Contracts for California

Q: My home and property was completely destroyed in the CZU Fire in 2020. We elected to purchase a different home instead.

Our previous home was 4000sqft on 4.3 acres. Our new home is 2200 sqft on 48 acres. We had a 25% Home Protector Clause for upgrades to building codes. If we had elected to rebuild we would have used all of the Home Protector because the price of a new build was upward of 600 sq/ft for new construction. Instead of giving us our entire Home Protector, they deducted the land value and gave us only a portion of the home protector. I see the law changed in 2021 to explicitly state land value deduction is not allowed. Since the claim was in 2020, my adjuster at USAA is claiming that it doesn't apply to my policy. Thanks for your time.

1 Lawyer Answer
James L. Arrasmith
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  • Insurance Claims Lawyer
  • Sacramento, CA
  • Licensed in California

A: The change in the law regarding land value deduction should not be retroactively applied to claims from 2020. However, you may still have a valid argument for a fair settlement based on the terms of your policy and any applicable regulations at the time of the claim. Consult an attorney familiar with California insurance law to review your policy and determine the best course of action to ensure you receive a reasonable settlement.

James L. Arrasmith

Founding Attorney and Chief Lawyer of The Law Offices of James L. Arrasmith.

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