California Aims to Resolve AIG Sayre Fire Claims

July 27, 2009

Although the Sayre Fire struck Sylmar, Calif., last November 2008, victims still have outstanding claims.

Several mobile park home owners recently complained to KABC-TV Los Angeles that they are awaiting claims payments by American International Group (AIG). The Sayre Fire destroyed 485 mobile homes, 370 insured by AIG, according to the Department of Insurance.

California Commissioner Steve Poizner suggested homeowners who believe their payments have been held up should contact his office to file a fomal complaint.

Already, the DOI has received has received 22 complaints for AIG. Eight have been resolved, and 14 are still outstanding, said Department of Insurance spokesman Darrel Ng.

In April 2009, CDI secured between $37 million and $46 million in additional coverage from AIG for Sayre Fire survivors in Sylmar.

It is CDI’s position that all 370 AIG policies included a stipulation that provides either 110 percent or 125 percent for additional coverage in the event of a total loss. After the Sayre Fire destroyed the homes of 370 AIG policyholders, the company advised the policyholders that the 110 percent enumerated in their policies actually meant 10 percent additional coverage, and 125 percent actually meant 25 percent additional coverage for policyholders. As many wildfire victims attempted to rebuild their lives, they found that the policy limits being offered by AIG were insufficient to replace their mobile homes.

Source: CDI

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