Home insurance companies set up for claims from wildfires

Working from vans and temporary tents set up in parking lots, insurance agents spent Tuesday helping owners of fire-damaged homes file claims.

"We've been hearing of many total losses," said Jerry Davies, a spokesman with Farmers Insurance. "The first concern is helping customers find a place to live, food and clothing. Then we begin the process of the claims."

Farmers, State Farm, Allstate and other insurers have declared the Central Texas fires a catastrophe, which means they are sending in specialized claims workers and equipment to help customers through the process.

Although it's too soon to determine the total amount of insured property losses caused by Texas wildfires, 2011 will be the worst in state history, said Mark Hanna, a spokesman for the Insurance Council of Texas, a trade association of about 500 insurers.

The previous record was set in 2009, when fires caused more than $100 million in insured property damages statewide.

"This weekend, we just surpassed it by a long shot," Hanna said. "Unfortunately, conditions are right in the entire state for this to continue."

A dirt lot at St. Luke's on the Lake Episcopal Church on RM 620 served as a makeshift base for Farmers and State Farm adjusters, who worked with customers from nearby Steiner Ranch. Using laptops, satellite systems and Wi-Fi, they accessed policies, filled out forms and, in some cases, issued checks for emergency living expenses.

"Many in Steiner Ranch still don't know the extent of the damage because they haven't been able to see their homes yet," State Farm adjuster Shane Fordham said. "They're stopping by with questions about how to get started."

State Farm policyholders in Central Texas had filed 210 claims as of Tuesday afternoon, and that number was expected to continue to rise, said Patti Kelly, a spokeswoman for the state's largest insurer.

Brady Webster, a Farmers Insurance field claims supervisor who lives in Bastrop, said urban wildfires are different from many disasters.

"Typically our catastrophes are hail storms, hurricanes and wind storms," Webster said. "By the time we've reacted, the disaster has occurred. This event just keeps going."

On Tuesday, people showed up at an emergency claim center on Texas 71 in Bastrop to begin filing claims even as black-and-white smoke billowed over the city's horizon.

"Most of our walk-ups want to file their claim and tell their story," Webster said. "But many are working on assumptions and hearsay. They don't know if their house is gone or whether their animals are alive."

Many residents couldn't confirm the damage to their homes because Bastrop-area neighborhoods remained closed Tuesday as firefighters struggled to contain the fire.

Insurance officials have encouraged people who have been evacuated to make contact with their insurance agent whether they know if their home is damaged or not. Once an insurance company has received a claim, it has 15 days to say whether it has accepted or rejected the claim. Most policies allow for an appraisal process to settle claim disputes.

As the threat of wildfires continues, officials are urging all Central Texas homeowners to have insurance, banking and other paperwork in order and easy to access in case of sudden evacuation.