Part 6/13:
However, claims vary greatly—from homes immediately near the fire to those miles away—leading to differing responses from insurers. The insurance industry must weigh fairness against the risk of overpaying for minor or questionable damages, which could inflate premiums for all policyholders.
The challenge is determining the level of damage—whether simple cleaning, replacing drywall, HVAC repairs, or more extensive reconstruction is necessary—without prompting unnecessary costs. The California Department of Insurance has a dedicated task force examining these issues to strike an appropriate balance.