Residents impacted by the ongoing threat of a hazardous chemical in Orange County, California, may be able to recoup the money they’ve spent due to evacuation orders, experts say. However, other questions will be worth posing to your insurance company as the incident unfolds.
Tens of thousands of people were in limbo for days as authorities braced for a major chemical spill or explosion in Garden Grove, an incident that spurred a state of emergency declaration from Gov. Gavin Newsom and a lawsuit. The far-reaching evacuation orders came after authorities said they responded to a vapor release from a large tank containing an industrial chemical at GKN Aerospace’s site in Garden Grove on May 21.
Although progress was made in preventing a major blast, officials still have to mitigate a fire and a “very small explosion concern,” and the possibility of a spill, Orange County Fire Authority Interim Fire Chief TJ McGovern said on May 25. Some 16,000 people remain under evacuation.
Had to Evacuate? Your Insurer May Cover Your Costs
Many policies have additional living expenses coverage, known as ALE or loss of use coverage, which can help pay for costs like hotel stays and temporary housing; increased food expenses; relocation and storage costs; and laundry, transportation, and other necessary living expenses, said Gabriel Sanchez, a spokesperson for the California Department of Insurance.
“Coverage may apply when a mandatory evacuation order prevents people from safely returning home, even if there is no direct physical damage to the property itself,” Sanchez said in an email.
However, it is possible that a policy would have a “daily cap of some sort,” according to Consumer Watchdog Executive Director Carmen Balber — something policyholders should check to see.
While renters’ insurance also covers loss of use, the amount available to a renter is typically lower, said Balber. That’s because it ends up being a percentage of your policy limits, which are smaller when you’re insuring your property inside a residence versus an entire building, she said.
Residents should contact their insurer to learn whether their policy includes ALE or loss-of-use coverage; what documents are needed to be reimbursed; whether evacuation orders or public health advisories trigger coverage; and how long benefits may be available, according to Sanchez.
“Insurance companies don’t always make it easy to get reimbursement for your expenses,” Balber said. “Documenting everything is really key, and letting the insurer know as soon as possible jump-starts that process.”
What if My Residence Needs Cleaning After a Disaster?
In either a spill or a fire, a “main concern” is the chemicals released entering nearby buildings, according to Andrew Whelton, professor of environmental engineering at Purdue University.
“So, residences, commercial buildings, other industrial buildings, and those will have to be tested, decontaminated, and cleared before people are allowed back in,” he said.
Whelton said that officials generally recommend that people shut off their air conditioning units to avoid drawing in outside contamination during these kinds of chemical incidents. That includes shutting windows and doors, or even sealing them.
“The contamination sometimes can still pass through leaky buildings,” Whelton said. “And that’s significant sometimes. The closer you are to the incident, the higher levels of contamination will likely be found inside a building.”
You have to test for the specific chemicals you’re concerned about to know whether they’re still there, Whelton said.
Cleanup from an incident like this may not be covered by your policy, Balber said.
“That’s really going to take reading the fine print of your insurance policy,” Balber said.
According to Sanchez, insurers may provide benefits related to temporary housing or hotel accommodations; environmental testing or inspections; cleanup or remediation efforts; and smoke, odor, or contamination removal services if contamination, fumes, or hazardous air quality make a home unsafe to be in.
“Whether coverage applies depends on the specific terms of the policy and the circumstances of the loss,” Sanchez said. “A key issue in situations like this is whether local or state officials determine that homes are unsafe due to hazardous conditions. Those determinations can play an important role in triggering or extending temporary living expense coverage.”
Sanchez said that those impacted should ask their insurer:
Whether it will conduct environmental testing, and what contamination or remediation services may be covered
Whether professional cleaning or air filtration may qualify
How long temporary housing benefits continue if the area remains unsafe
Have More Questions? Face Disputes in Your Claim?
People are encouraged to call the California Department of Insurance if they encounter disputes or have any uncertainty, according to Sanchez. The department’s number is 1-800-927-4357, or contact the department online at www.insurance.ca.gov.
Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reporting by Paris Barraza, USA TODAY. USA TODAY Network via Reuters Connect.
