# CA Insurance Notice: Guide for Adjusting Property Claims in California After a Major Disast: Guide for Adjusting Property Claims in California After a Major Disaster – 2026

> California · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/CA_INS_N_2026-Guide-for-Adjusting-Property-Claims-in-California-After-a-Major-Disaster-Final

## Section

- **Citation:** CA Insurance Notice: Guide for Adjusting Property Claims in California After a Major Disast
- **Heading:** Guide for Adjusting Property Claims in California After a Major Disaster – 2026
- **Jurisdiction:** California
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** California DOI Insurance Notices / Guide for Adjusting Property Claims in California After a Major Disaster – 2026

## Text

The Wildfires
Earthquakes
Floods
California Department of Insurance
January 9, 2026

Guide for Adjusting Property Claims in
California After a Major Disaster

Guide for Adjusting Property Claims in
California After a Major Disaster
Table of Contents
Introduction
5
What is an Independent Insurance Adjuster?
Who is Required to Hold this License; and
Who Needs to be Registered?
6
Independent Insurance Adjuster Licensing Requirements
6
Registration of Independent Insurance Adjuster Employees
6
In the Event of an Emergency Situation Declared by the
Insurance Commissioner
Registration
7
Important Note
7
Required Certification
7
Adjuster Online Services
8
Note
8
Certification – Adjusters Not Licensed in California,
Declared Emergency Situation by the Commissioner, CDI-184
8
Note
8
Required Independent Insurance Adjuster Training
Continuing Education Requirements
9
The Department’s Annual Notice and Guide for Adjusting Property
Claims in California After a Major Disaster
9
Important Note
9
Information Relevant to Evaluating Damage Caused by an Emergency,
Catastrophe, Disaster, or Other Similar Occurrence
Provide Claimant Copy of the Department’s Notice
10
Copy of Complete Policy After Loss
10
Additional Living Expenses
List of Items Covered
10
Time Limit to Collect Additional Living Expenses
10
Uninhabitable/Reasonable Habitation
11
Restricted Access by Civil Authority
11
Advance Payment
11
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 2
Claimant Copy of the Department’s Notice
10
Copy of Complete Policy After Loss
10
Additional Living Expenses
List of Items Covered
10
Time Limit to Collect Additional Living Expenses
10
Uninhabitable/Reasonable Habitation
11
Restricted Access by Civil Authority
11
Advance Payment
11
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 2

Itemization of Contents
11
Grace Period
12
Policy Coverage – Peril of Fire
12
Policy Provisions and Benefits
12
Duties Upon Receipt of Communications
Initial Contact
13
Response to Claimant Communications
13
Response Timelines and Written Communication
Acceptance or Denial of Claim
13
Actual Cash Value Calculation
14
Replacement Cash Value Calculation
15
Rebuilding in Current Location or Rebuilding or
Replacing in a New Location
15
Land Value Deduction
15
Replacement Cost
15
Building Code Upgrade Coverage
16
Ability to Combine Coverages
16
Payment of Contents Without Inventory
16
Estimate Reconciliation
17
Time Limit to Collect Full Replacement Costs
18
Proof of Loss Less Than 100 Days After the Loss
19
Submission of Proof of Loss for Good Cause
19
Investigation
20
Changing Claims Adjusters – Primary Point of Contact
20
Note
20
Appraisal
20
Suits
21
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 3

Betterment, Depreciation, Salvage
21
Prohibited Conduct
No Attempts to Settle Unreasonably Low
22
Claims Settlement Practices
22
Referrals
22
Settlements
22
Claimant’s Rights
22
Polygraph Examination
22
Documented Telephone Conversations
22
Complaints
22
Statute of Limitation
22
Prompt Payment
23
California Department of Insurance Enforcement
24
Additional Adjuster Training
Training for Evaluating Earthquake Damage
25
Flood Training, National Flood Insurance Program
27
Disclaimer:
This Guide is for informational purposes only
22
Claimant’s Rights
22
Polygraph Examination
22
Documented Telephone Conversations
22
Complaints
22
Statute of Limitation
22
Prompt Payment
23
California Department of Insurance Enforcement
24
Additional Adjuster Training
Training for Evaluating Earthquake Damage
25
Flood Training, National Flood Insurance Program
27
Disclaimer:
This Guide is for informational purposes only. The actual terms and methods of evaluating
damage caused by an emergency, catastrophe, disaster, or other similar occurrence and
related laws prevail over the information provided in this Guide. The information contained
in this Guide does not create rights or obligations on the part of the insured, the insurer,
the agent, the broker, the licensed adjuster, the employee and the adjuster not licensed
in California, or the California Department of Insurance. This Guide is not intended to be
a substitute for the actual training of the insurance adjuster, employee, or adjuster not
licensed in California (California Insurance Code sections 14022(a)(2), 14022.5(a)(3),
14046(a)(2), and 14046(c)).
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 4

Introduction
Since at least 2007, the California Department of Insurance (Department) has distributed
notices to insurers, agents/brokers, and adjusters regarding the significant California laws
that pertain to residential property insurance policies. These notices can be found on the
Department’s Wildfire Resources web page.
On October 3, 2019, Governor Gavin Newsom signed Senate Bill (SB) 240, authored by
Senator Bill Dodd (Chapter 502, Statutes of 2019), the Insurance Adjuster Act. This bill
took effect immediately and added Section 14046 to the California Insurance Code,
which requires the Department to annually prepare a Notice that describes the most
significant California laws pertaining to property insurance policies, including those
related to a declared state of emergency
, authored by
Senator Bill Dodd (Chapter 502, Statutes of 2019), the Insurance Adjuster Act. This bill
took effect immediately and added Section 14046 to the California Insurance Code,
which requires the Department to annually prepare a Notice that describes the most
significant California laws pertaining to property insurance policies, including those
related to a declared state of emergency.
In addition, California Insurance Code section 14046(a)(2) requires the Department to
prepare and deliver to all licensed insurance adjusters a guide that includes information
relevant to evaluating damage caused by an emergency, catastrophe, disaster, or other
similar occurrence, including wildfires. To meet this requirement, the Department
developed this Guide for Adjusting Property Claims in California After a Major Disaster
(Guide).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 5

What is an Independent Insurance Adjuster?
Who is Required to Hold this License, and Who Needs to be Registered?
An independent insurance adjuster is a person other than a private investigator who, for
any consideration whatsoever, engages in the business of making an investigation for the
purpose of obtaining information in the course of adjusting or participating in the disposal
of any claim in connection with a policy of insurance or engages in soliciting insurance
adjustment business (California Insurance Code section 14021).
Independent Insurance Adjuster Licensing Requirements – A person adjusting or
settling property and casualty claims who is:
• not employed exclusively and regularly by one employer in connection with the affairs
of the employer only, and
• not in an employee-employer relationship with an insurance company, but works on
behalf of an insurance company is performing the duties of an insurance adjuster.
This person is required to be individually licensed as an insurance adjuster (California
Insurance Code section 14022(a)(1))
ployed exclusively and regularly by one employer in connection with the affairs
of the employer only, and
• not in an employee-employer relationship with an insurance company, but works on
behalf of an insurance company is performing the duties of an insurance adjuster.
This person is required to be individually licensed as an insurance adjuster (California
Insurance Code section 14022(a)(1)).
Unless meeting the definition of a person exempted from the licensing requirements as
stated in California Insurance Code section 14022, all persons must obtain an
independent insurance adjuster license prior to adjusting or participating in the disposal
of any claim in connection with a policy of insurance or engaging in soliciting insurance
adjustment business. To become a licensed adjuster, review the Department’s Adjuster
Licensing Requirements web page.
Registration of Independent Insurance Adjuster Employees – The most common
exemption to the individual independent insurance adjuster licensing requirements are
those individuals who are employed by a qualified licensed insurance adjuster or qualified
manager (California Insurance Code sections 14037 and 14041). The qualified licensed
independent insurance adjusters and qualified managers are required to report all
employees who are authorized to negotiate claims settlements under the independent
insurance adjuster license to the Department when applying for an adjuster license and
when the license is renewed using one of the following registration services:
• the Department’s Independent Insurance Adjuster Registration and Certification
Online Services (Adjuster Online Services);
• Independent Insurance Adjuster List of Employees and Adjusters Not Licensed in
California, CDI-183; or,
• Written letter delivered to the California Department of Insurance, Attention Adjuster
Unit, 300 Capitol Mall, Room 16090, Sacramento, CA 95814
The Department is to be informed within 30 days of any employee hired or terminated
subsequent to the filing of the i
juster Online Services);
• Independent Insurance Adjuster List of Employees and Adjusters Not Licensed in
California, CDI-183; or,
• Written letter delivered to the California Department of Insurance, Attention Adjuster
Unit, 300 Capitol Mall, Room 16090, Sacramento, CA 95814
The Department is to be informed within 30 days of any employee hired or terminated
subsequent to the filing of the initial employee list – this is an on-going process (California
Code of Regulations, Title 10, section 2691.12).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 6

In the Event of an Emergency Situation Declared by the Insurance Commissioner
– Registration – When the Commissioner declares an emergency situation, insurers,
qualified licensed adjusters, and qualified managers must register with the Department
all insurance adjuster employees and adjusters not licensed in California who are
authorized to negotiate claims settlements on their behalf during the declared emergency
(California
Insurance
Code
section
14022.5).
“Registration” or “registered” means
submitting the names of insurance
adjuster employees and adjusters not
licensed
in
California
to
the
Commissioner
using
one
of
the
registration services listed below no later
than 15 calendar days from the date they
began
claims
adjusting
activity
in
California
Insurance
Code
section
14022.5(a)(2):
• The Department’s Independent Insurance Adjuster Registration and Certification
Online Services (Adjuster Online Services);
Note: The Adjuster Online Service “Emergency Declaration” link will be available
at the time the Insurance Commissioner declares an emergency situation in
California
date they
began
claims
adjusting
activity
in
California
Insurance
Code
section
14022.5(a)(2):
• The Department’s Independent Insurance Adjuster Registration and Certification
Online Services (Adjuster Online Services);
Note: The Adjuster Online Service “Emergency Declaration” link will be available
at the time the Insurance Commissioner declares an emergency situation in
California.
• Independent Insurance Adjuster List of Employees and Adjusters Not Licensed in
California, CDI-183; or,
• Written letter delivered to the California Department of Insurance, Attention
Adjuster Unit, 300 Capitol Mall, Room 16090, Sacramento, CA 95814
Registration for claims adjusting activities arising out of an emergency is valid for a period
of 180 days from the date of the registration of the employee or adjuster not licensed in
California. Before the lapse of that period, the Department may deem a 180-day extension
is appropriate if a request by a supervising licensed adjuster or admitted insurer is
received (California Insurance Code section 14022.5(c)).
Important Note: For the registration to be valid for insurance adjuster employees and
adjusters not licensed in California who are authorized to negotiate claims settlements
when the Commissioner declares an emergency situation, the adjuster employee and
adjuster not licensed in California must complete the required certification as stated below
(California Insurance Code section 14022.5(d)).
Required Certification – Independent insurance adjuster employees and adjusters not
licensed in California must submit to the Department a certification, under penalty of
perjury, that they have read and understand the Department’s most recent Notice and
this Guide for adjusting property claims in California or their registrations are invalid
ow
(California Insurance Code section 14022.5(d)).
Required Certification – Independent insurance adjuster employees and adjusters not
licensed in California must submit to the Department a certification, under penalty of
perjury, that they have read and understand the Department’s most recent Notice and
this Guide for adjusting property claims in California or their registrations are invalid.
The following are two methods for employees and adjusters not licensed in California to
submit their completed certifications:

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 7

• Adjuster Online Services – Using the “Emergency Declaration” link, at the time
the names of the insurance adjuster employees and adjusters not licensed in
California are submitted to CDI, the Adjuster Online Services will create an email
providing instructions on how the employee or adjuster not licensed in California
can electronically certify, under penalty of perjury, that they have read and
understand CDI’s Notice and this Guide. The insurer, qualified licensed adjuster,
or qualified manager will need to insert the employee’s or adjuster not licensed in
California’s email address to send the instructions.
Note: This Adjuster Online Service “Emergency Declaration link will be available
at the time the Insurance Commissioner declares an emergency situation in
California.
• Certification – Adjusters Not Licensed in California, Declared Emergency
Situation by the Commissioner, CDI-184 – Qualified insurance adjusters,
qualified managers, and insurers who submit a completed Independent Insurance
Adjuster List of Employees and Adjusters Not Licensed in California, CDI-183, or
submit a written letter, are required to provide their employees and adjusters not
licensed in California with copies or links to the Department’s Notice, this Guide,
and a copy of the Certification – Adjusters Not Licensed in California, Declared
Emergency Situation by the Commissioner, CDI-184
pendent Insurance
Adjuster List of Employees and Adjusters Not Licensed in California, CDI-183, or
submit a written letter, are required to provide their employees and adjusters not
licensed in California with copies or links to the Department’s Notice, this Guide,
and a copy of the Certification – Adjusters Not Licensed in California, Declared
Emergency Situation by the Commissioner, CDI-184. CDI-184 can be submitted
to the Department by email, fax, or U.S. mail using the delivery information
provided on the form (California Insurance Code, section 14022.5(a)(3)).
Note: The Certification – Adjusters Not Licensed in California, Declared
Emergency Situation by the Commissioner, CDI-184, form will be available at the
time the Insurance Commissioner declares an emergency situation in California.
The work performed by insurance adjuster employees and adjusters not licensed in
California must be under the active direction, control, charge, or management of a
licensed adjuster, qualified manager, or insurer authorized to conduct business in
California (California Insurance Code, section 14022.5(a)(1) and 14029(a)).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 8

Required Independent Insurance Adjuster Training
Continuing Education Requirements – Licensed insurance adjusters are required to
complete a minimum of 24 hours of continuing education every two-year license term, of
which three hours are to be in ethics and the California Insurance Code. The continuing
education courses include topics such as homeowners, dwelling, commercial insurance
coverages, the Adjuster Act, adjusting losses, Fair Claims Settlement Practices, and the
duties and responsibilities of an insurance adjuster licensee. Licensed insurance
adjusters can use the Department’s Education Provider and Course Search to locate the
required courses to complete their continuing education requirements (California
Insurance Code section 14090.1)
ing, commercial insurance
coverages, the Adjuster Act, adjusting losses, Fair Claims Settlement Practices, and the
duties and responsibilities of an insurance adjuster licensee. Licensed insurance
adjusters can use the Department’s Education Provider and Course Search to locate the
required courses to complete their continuing education requirements (California
Insurance Code section 14090.1).
The Department’s Annual Notice and Guide for Adjusting Property Claims in
California After a Major Disaster – In January each year, the Department’s Notice and
this Guide will be distributed to licensed insurance adjusters, qualified managers, and
insurers admitted in the state of California. This is in addition to the required California
Insurance Code sections 790 through 790.15, Fair Claims Settlement Practices
Regulations, and California Code of Regulations, Title 10, sections 2695.1 through
2695.14 training for all claims adjusters. The training and certification are to be completed
by all claims adjusters on or before September 1 of each calendar year (California Code
of Regulations, Title 10, section 2695.6).
Important Note: After a public official declares a state of emergency, as defined in
California Government Code Section 8558, licensed adjusters and qualified managers
are to require the employees and non-licensed adjusters under their supervision to read
and understand the Department’s most recent Notice and this Guide no later than 15
calendar days from the date on which the employee began claims adjusting activity in
California (California Insurance Code section 14022(a)(2)).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 9
yees and non-licensed adjusters under their supervision to read
and understand the Department’s most recent Notice and this Guide no later than 15
calendar days from the date on which the employee began claims adjusting activity in
California (California Insurance Code section 14022(a)(2)).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 9

Information Relevant to Evaluating Damage
Caused by an Emergency,
Catastrophe, Disaster, or Other Similar Occurrence
The Department’s Notice emphasizes that all claims adjusters, whether licensed in
California or not, who are assigned to adjust claims in California must be properly trained
on all laws relating to property and casualty insurance claims handling and the California
Unfair Practices Act, Fair Claims Settlement Practices Regulations. Some insurance laws
are specifically triggered by a declared disaster and impact how claims are paid and the
various timeframes for payment of claims that supersede policy provisions to the contrary.
The following are California Insurance Code Sections and Fair Claims Settlement
Practices Regulations pertaining to property and casualty insurance claims handling:
Provide Claimant a Copy of the Department’s Notice: For a claim under a policy of
residential property insurance arising as a result of a declared state of emergency, as
defined in California Government Code section 8558, or other emergency declared by a
public official, insurers are required to provide the insured with a copy of the most recent
Department Notice no later than 15 calendar days from the date on which the insurer
received notice of the claim (California Insurance Code section 14046(b)).
Copy of Complete Policy After a Loss: After a covered loss under a policy covered by
California Insurance Code section 2071, an insurer shall provide to the insured, free of
charge, a complete, current copy of their policy within 30 calendar days of receipt of a
request from the insured
om the date on which the insurer
received notice of the claim (California Insurance Code section 14046(b)).
Copy of Complete Policy After a Loss: After a covered loss under a policy covered by
California Insurance Code section 2071, an insurer shall provide to the insured, free of
charge, a complete, current copy of their policy within 30 calendar days of receipt of a
request from the insured. The policy must include the full insurance policy, any
endorsements, and the declarations page (California Insurance Code section 2084).
Additional Living Expenses
• List of Items Covered: If requested by the insured, insurance companies are
required to provide the insured with a list of items that an insurer believes would
be covered under the policy (California Insurance Code section 2060(a)).
• Time Limit to Collect Additional Living Expenses: In the event of a covered
loss relating to a state of emergency, as defined in California Government Code
section 8558, on and after July 1, 2021, coverage for additional living expenses (or
loss of use) shall be for at least 24 months from the inception of the loss, but shall
be subject to other policy provisions. An insurer shall grant an extension of up to
12 additional months, for a total of 36 months, if an insured acting in good faith and
with reasonable diligence encounters a delay or delays in the reconstruction
process that are the result of circumstances beyond the control of the insured.
Circumstances beyond the control of the insured include, but are not limited to,
unavoidable construction permit delays, lack of necessary construction materials,
and lack of available contractors to perform the necessary work. Additional
extensions of six months shall be provided to policyholders for good cause
(California Insurance Code section 2060(b)(1)).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 10
imited to,
unavoidable construction permit delays, lack of necessary construction materials,
and lack of available contractors to perform the necessary work. Additional
extensions of six months shall be provided to policyholders for good cause
(California Insurance Code section 2060(b)(1)).

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 10

• Uninhabitable/Reasonable Habitation: If the insured home is rendered
uninhabitable by a covered peril, on and after July 1, 2021, a policy that provides
coverage for additional living expenses shall not limit the policyholder’s right to
recovery. However, an insurer may, in lieu of making living expense payments
required by this subdivision, provide a reasonable alternative remedy that addresses
the property condition that precludes reasonable habitation of the insured premises.
The additional living expense coverage subject to this section does not include a utility
public safety power shut off event, which is the deenergization of a portion of the
electrical distribution or transmission system to reduce the risk of wildfire ignition
(California Insurance Code section 2060(b)(2)).
• Restricted Access by Civil Authority: In the event of a state of emergency, as
defined in California Government Code section 8558, for a loss that is otherwise not
subject to California Insurance Code sections 2060(b)(1) and (2) above, that is
accompanied by an order of civil authority restricting access to the home related to a
covered peril on and after July 1, 2021, additional living expense coverage shall be
provided for at least two weeks
f a state of emergency, as
defined in California Government Code section 8558, for a loss that is otherwise not
subject to California Insurance Code sections 2060(b)(1) and (2) above, that is
accompanied by an order of civil authority restricting access to the home related to a
covered peril on and after July 1, 2021, additional living expense coverage shall be
provided for at least two weeks. Additional extensions of two weeks shall be provided
to a policyholder for good cause, but shall be subject to other policy provisions
(California Insurance Code section 2060(c))
• Advance Payment: In the event of a covered loss relating to a state of emergency as
defined in California Government Code section 8558, the following special provision
shall apply under a residential property insurance policy:
(1) If an insured has made a claim for additional living expenses related to a
total loss, an insurer shall, upon request by an insured, render an advance
payment of no less than four months of living expenses. Additional payment for
additional living expenses shall be payable upon proper proof following the
advance period (California Insurance Code section 2061(a)).
• Itemization of Contents: In the event of a covered loss relating to a state of
emergency, as defined in California Government Code section 8558, the following
special provisions shall apply under a residential property insurance policy:
(2) If an insured has made a claim for contents related to a total loss of a
primary residence, an insurer shall not require that the insured use a companyspecific inventory form if the insured can provide an inventory using a form that
contains substantially the same information. This subdivision does not limit the
authority of an insurer to seek additional reasonable information from an
insured upon receipt of an inventory form submitted by an insured.
tal loss of a
primary residence, an insurer shall not require that the insured use a companyspecific inventory form if the insured can provide an inventory using a form that
contains substantially the same information. This subdivision does not limit the
authority of an insurer to seek additional reasonable information from an
insured upon receipt of an inventory form submitted by an insured.
(3) If an insured has made a claim for contents related to a total loss of a
primary residence, an insurer shall accept an inventory that includes groupings
of categories of personal property, including clothing, shoes, books, food items,
CDs, DVDs, or other categories of items for which it would be impractical to
separately list each individual item claimed (California Insurance Code section
2061(a)).
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 11

Grace Period: In the event of a state of emergency, as defined in California Government
Code section 8558, an insurer shall offer a 60-day grace period for payment of premiums
for residential property insurance policies covering a property located within the affected
area defined in the state of emergency for a period of 60 days after the emergency. This
section does not require any change to insurer billing practices regarding billing,
automatic payment, or cancellation for nonpayment if the insurer reinstates, without a
lapse in coverage or late fees, any policy subject to this section that was canceled for
nonpayment of premiums, if requested by the insured and upon reasonably timely
payment of all premiums due (California Insurance Code section 2062)
s not require any change to insurer billing practices regarding billing,
automatic payment, or cancellation for nonpayment if the insurer reinstates, without a
lapse in coverage or late fees, any policy subject to this section that was canceled for
nonpayment of premiums, if requested by the insured and upon reasonably timely
payment of all premiums due (California Insurance Code section 2062).
Policy Coverage – Peril of Fire: If an insurer issues a new residential property insurance
policy on or after July 1, 2021, that does not provide coverage for the peril of fire, the
insurer shall, on or before the date of issuance of the policy, obtain a signed
acknowledgment from the applicant or insured stating that the newly issued policy does
not provide coverage for the peril of fire. If the applicant or insured does not sign the
required acknowledgment on or before the issuance of the policy, the insurer shall obtain
the signed acknowledgment from the applicant or insured within 60 days of the date of
issuance of the policy. For purposes of this subdivision, a new or newly issued policy
does not include renewal of an existing policy, including a renewal that contains different
terms than the preceding policy periods.
If an insurer issues or renews a residential property insurance policy on or after July 1,
2021, that does not provide coverage for the peril of fire, the insurer shall prominently
disclose both of the following on the declarations page of the policy:
(1) The following statement in bold, uppercase letters in no less than 12-point type:
THIS POLICY DOES NOT COVER THE PERIL OF FIRE. THERE ARE OTHER
RESOURCES FOR FINDING FIRE COVERAGE, INCLUDING USING THE
CALIFORNIA DEPARTMENT OF INSURANCE’S HOME INSURANCE FINDER OR
PURCHASING COVERAGE FROM THE CALIFORNIA FAIR PLAN ASSOCIATION.
se both of the following on the declarations page of the policy:
(1) The following statement in bold, uppercase letters in no less than 12-point type:
THIS POLICY DOES NOT COVER THE PERIL OF FIRE. THERE ARE OTHER
RESOURCES FOR FINDING FIRE COVERAGE, INCLUDING USING THE
CALIFORNIA DEPARTMENT OF INSURANCE’S HOME INSURANCE FINDER OR
PURCHASING COVERAGE FROM THE CALIFORNIA FAIR PLAN ASSOCIATION.
(2) Information on the California FAIR Plan, as required by subdivision (h) of California
Insurance Code section 10095, and information on the California Home Insurance Finder,
as required by subdivision (b) of California Insurance Code section 10095.7 (California
Insurance Code section 10103.6).
Policy Provisions and Benefits: Insurers are required to provide complete disclosure
of all benefits, coverage, time limits, or other provisions of the insurance policy issued to
the insured or beneficiary. Adjusters must immediately communicate with and assist the
insured in determining the extent of the insurer's additional liability when additional
benefits might reasonably be payable under an insured's policy upon receipt of additional
proofs of claim.
The insurer cannot:
• deny a claim based on the claimant's failure to exhibit property, unless there is
documentation in the file of: (1) reasonable demand by the insurer, and unfounded
refusal by the claimant, to exhibit property, or (2) the breach of any policy provision
providing for the exhibition of property (California Code Regulations, Title 10, section
2695.4(c))
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 12
operty, unless there is
documentation in the file of: (1) reasonable demand by the insurer, and unfounded
refusal by the claimant, to exhibit property, or (2) the breach of any policy provision
providing for the exhibition of property (California Code Regulations, Title 10, section
2695.4(c))
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 12

• require the claimant to sign a release that extends beyond the subject matter that gave
rise to the claim payment, as defined in California Code of Regulations, Title 10,
section 2695.4(e)(1)
• issue checks or drafts in partial settlement of a loss or claim that contain or are
accompanied by language releasing the insurer, the insured, or the principal on a
surety bond from total liability unless the policy or bond limit has been paid, or there
has been a compromise settlement agreed to by the claimant and the insurer as to
coverage and amount payable under the insurance policy or bond. (California Code
of Regulations, Title 10, section 2695.4(f))
• require a duplicate proof of claim submission from the claimant as defined in California
Code of Regulations, Title 10, section 2695.4(g)
Duties Upon Receipt of Communications:
• Initial Contact – Upon receiving notice of claim, every licensee or claims agent shall
immediately transmit notice of claim to the insurer. Within 15 calendar days of
receiving notice of a claim, the insurer must acknowledge receipt of the notice to the
claimant unless payment is made within that time. If the acknowledgement is not in
writing, a notation of acknowledgement shall be made in the insurer’s claim file and
dated. The insurer must also provide the necessary forms, instructions, and
reasonable assistance, including but not limited to, specifying the information the
claimant must provide for proof of claim and must begin any necessary investigation
of the claim (California Code Regulations, Title 10, sections 2695.5(d) and (e))
tation of acknowledgement shall be made in the insurer’s claim file and
dated. The insurer must also provide the necessary forms, instructions, and
reasonable assistance, including but not limited to, specifying the information the
claimant must provide for proof of claim and must begin any necessary investigation
of the claim (California Code Regulations, Title 10, sections 2695.5(d) and (e)).
• Response to Claimant Communications – Within 15 calendar days of receiving
communication from a claimant that reasonably suggests a response is expected, the
licensee must respond to the claimant with a complete response of the facts as then
known by the licensee (California Code Regulations, Title 10, section 2695.5(b)).
Response Timelines and Written Communication
Acceptance or Denial of Claim – California Code of Regulations, Title 10, section
2695.7(b) states the following:
Upon receiving proof of claim, every insurer, except as specified in California Code
of Regulations, Title 10, section 2695.7(b)(4) below, shall immediately, but in no
event more than forty (40) calendar days later, accept or deny the claim, in whole or
in part. The amounts accepted or denied shall be clearly documented in the claim file
unless the claim has been denied in its entirety. Specifically, as follows:
(1) Where an insurer denies or rejects a first party claim, in whole or in part, it
shall do so in writing and shall provide to the claimant a statement listing all bases
for such rejection or denial and the factual and legal bases for each reason given
for such rejection or denial which is then within the insurer's knowledge. Where
an insurer's denial of a first party claim, in whole or in part, is based on a specific
statute, applicable law or policy provision, condition or exclusion, the written
denial shall include reference thereto and provide an explanation of the
application of the statute, applicable law or provision, condition or exclusion to the
claim
r denial which is then within the insurer's knowledge. Where
an insurer's denial of a first party claim, in whole or in part, is based on a specific
statute, applicable law or policy provision, condition or exclusion, the written
denial shall include reference thereto and provide an explanation of the
application of the statute, applicable law or provision, condition or exclusion to the
claim. Every insurer that denies or rejects a third-party claim, in whole or in part,
or disputes liability or damages shall do so in writing.
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(2) Subject to the provisions of California Code of Regulations, Title 10, section
2695.7(k), nothing contained in California Code of Regulations, Title 10, section
2695.7(b)(1) shall require an insurer to disclose any information that could
reasonably be expected to alert a claimant to the fact that the subject claim is
being investigated as a suspected fraudulent claim.
(3) Written notification pursuant to this subsection shall include a statement that,
if the claimant believes all or part of the claim has been wrongfully denied or
rejected, he or she may have the matter reviewed by the California Department
of Insurance, and shall include the address and telephone number of the unit of
the Department which reviews claims practices.
(4) The time frame in California Code of Regulations, Title 10, section 2695.7(b)
shall not apply to claims arising from policies of disability insurance subject to
California Insurance Code section 10123.13, disability income insurance subject
to California Insurance Code section 10111.2, or mortgage guaranty insurance
subject to California Insurance Code section 12640.09(a) and shall not apply to
automobile repair bills arising from policies of automobile collision and
comprehensive insurance subject to California Insurance Code section 560
subject to
California Insurance Code section 10123.13, disability income insurance subject
to California Insurance Code section 10111.2, or mortgage guaranty insurance
subject to California Insurance Code section 12640.09(a) and shall not apply to
automobile repair bills arising from policies of automobile collision and
comprehensive insurance subject to California Insurance Code section 560. All
other provisions of California Code of Regulations, Title 10, sections
2695.7(b)(1), (2), and (3) are applicable.
Within 40 days of receiving proof of claim, the insurer is required to accept or deny
the claim in writing, in whole or in part. If the insurer needs additional time, the insurer
must provide the insured a written notice that specifies any additional information
the adjuster requires in order to make a determination. Every 30 days, an updated
extension notice must be provided to the insured until a final determination is made
or notice of legal action is served (California Code Regulations, Title 10, section
2695.7(c)).
Actual Cash Value Calculation: Under an open policy, the measure of indemnity in fire
insurance is the expense to the insured of replacing the thing lost or injured in its condition
at the time of the injury, the expense being computed as of the time of the commencement
of the fire.
Under an open policy that requires payment of actual cash value, the measure of the
actual cash value recovery, in whole or partial settlement of the claim, for either a total or
partial loss to the structure or its contents, shall be the amount it would cost the insured
to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction
for physical depreciation based upon its condition at the time of the injury or the policy
limit, whichever is less
ctual cash value recovery, in whole or partial settlement of the claim, for either a total or
partial loss to the structure or its contents, shall be the amount it would cost the insured
to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction
for physical depreciation based upon its condition at the time of the injury or the policy
limit, whichever is less. A deduction for physical depreciation shall apply only to
components of a structure that are normally subject to repair and replacement during the
useful life of that structure (California Insurance Code section 2051).

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Replacement Cost Value Calculation
Under an open policy that requires payment of the replacement cost for a loss, the
measure of indemnity is the amount that it would cost the insured to repair, rebuild, or
replace the thing lost or injured, without a deduction for physical depreciation, or the policy
limit, whichever is less (California Insurance Code section 2051.5(a)).
Rebuilding in Current Location or Rebuilding or Replacing in a New Location: In
the event of a total loss of the insured structure, a policy issued or delivered in this state
shall not contain a provision that limits or denies on the basis that the insured has decided
to rebuild at a new location or to purchase an already built home at a new location,
payment of the building code upgrade cost or the replacement cost, including any
extended replacement cost coverage to the extent those costs are otherwise covered by
the terms of the policy or any policy endorsement. However, the measure of indemnity
shall not exceed the replacement cost, including the building code upgrade cost and any
extended replacement cost coverage, if applicable, to repair, rebuild, or replace the
insured structure at its original location (California Insurance Code section 2051.5(c)(1))
e extent those costs are otherwise covered by
the terms of the policy or any policy endorsement. However, the measure of indemnity
shall not exceed the replacement cost, including the building code upgrade cost and any
extended replacement cost coverage, if applicable, to repair, rebuild, or replace the
insured structure at its original location (California Insurance Code section 2051.5(c)(1)).
Land Value Deduction: For a residential property insurance policy, the measure of
damages available to a policyholder to use to rebuild or replace the insured home at
another location shall be the amount that would have been recoverable had the insured
dwelling been rebuilt at its original location, and a deduction for the value of land at the
new location shall not be permitted from that measure of damages. However, the
measure of indemnity shall not exceed the cost, including the building code upgrade cost
and any extended replacement cost coverage, if applicable, to rebuild the insured
structure at its original location (California Insurance Code section 2051.5(c)(2)).
On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply
with this section in its entirety (California Insurance Code section 2051.5(e)).
Replacement Cost: Fire and extended coverage type policies with replacement cost
coverage cover the repair and replacement of damaged property, as well as the repair of
any damage incurred in making such repairs or replacements. When items or parts are
replaced, such items or parts should be of the same quality as those they are replacing.
Specifically, California Code of Regulations, Title 10, section 2695.9(a) states the
following:
e type policies with replacement cost
coverage cover the repair and replacement of damaged property, as well as the repair of
any damage incurred in making such repairs or replacements. When items or parts are
replaced, such items or parts should be of the same quality as those they are replacing.
Specifically, California Code of Regulations, Title 10, section 2695.9(a) states the
following:
(a) When a residential or commercial property insurance policy provides for the
adjustment and settlement of first party losses based on replacement cost, the
following standards apply:
(1) When a loss requires repair or replacement of an item or part, any
consequential physical damage incurred in making the repair or replacement
not otherwise excluded by the policy shall be included in the loss. The insured
shall not have to pay for depreciation nor any other cost except for the
applicable deductible.
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(2) When a loss requires replacement of items and the replaced items do not
match in quality, color, or size, the insurer shall replace all items in the damaged
area so as to conform to a reasonably uniform appearance.
Building Code Upgrade Coverage: An open policy of residential property insurance that
provides replacement cost coverage shall not be issued or renewed unless it provides
additional building code upgrade coverage of no less than 10 percent of the dwelling
coverage policy limits. The building code upgrade coverage required by this subdivision
shall be additional coverage, and use of this coverage shall not reduce or deplete the
dwelling coverage policy limits for the insured property. Insurers may offer building code
upgrade coverage of greater than 10 percent of the dwelling coverage policy limits in
addition to providing the minimum coverage of 10 percent of the dwelling coverage policy
limits (California Insurance Code section 10103(c))
additional coverage, and use of this coverage shall not reduce or deplete the
dwelling coverage policy limits for the insured property. Insurers may offer building code
upgrade coverage of greater than 10 percent of the dwelling coverage policy limits in
addition to providing the minimum coverage of 10 percent of the dwelling coverage policy
limits (California Insurance Code section 10103(c)).
Ability to Combine Coverages: In the event of a claim relating to a state of emergency,
an insured under a residential property insurance policy shall be permitted to combine
payments for claims for losses up to the policy limits for the primary dwelling and other
structures, for any of the covered expenses reasonably necessary to rebuild or replace
the damaged or destroyed dwelling, if the policy limits for coverage to rebuild or replace
the primary dwelling are insufficient (California Insurance Code section 10103.7(a)).
Payment of Contents Without Inventory: In the event of a covered total loss of a
primary dwelling under a residential property insurance policy resulting from a state of
emergency, if the residence was furnished at the time of the loss,
(1)
the insurer shall offer a payment under the contents (personal property) coverage
in an amount no less than 60 percent of the policy limit applicable to the personal
property covered under the policy, up to a maximum of three hundred fifty
thousand dollars ($350,000), without requiring the insured to file an itemized claim.
(2)
After receiving the payment described in paragraph (1), the insured may recover
additional amounts up to the policy limit for contents coverage by filing a claim
pursuant to the terms of the policy for the loss of contents that exceeds the value
of the payment provided pursuant to paragraph (1).
fifty
thousand dollars ($350,000), without requiring the insured to file an itemized claim.
(2)
After receiving the payment described in paragraph (1), the insured may recover
additional amounts up to the policy limit for contents coverage by filing a claim
pursuant to the terms of the policy for the loss of contents that exceeds the value
of the payment provided pursuant to paragraph (1).
(3)
When an insured files a claim relating to a state of emergency, as defined in
California Government Code section 8558, the insurer shall notify the insured of
the option to receive payment for loss of contents pursuant to paragraph (1) and
of the insured’s option to subsequently file a full itemized claim pursuant to
paragraph (2).
(4)
This subdivision does not affect payment under the policy for scheduled personal
property.
(5)
As a condition of receiving the advance payment made pursuant this subdivision,
an insurer may require the insured sign an attestation form. The attesting form may
request that the insured acknowledge the residence was furnished and that the
insured reasonably believes the personal property damaged or destroyed had a
value that equates or exceeded the amount of the advance payment. The
attestation form shall not contain any misleading or inaccurate information. The
commissioner may issue a bulletin or promulgate a regulation that describes the
parameters of an attestation form.
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 16
damaged or destroyed had a
value that equates or exceeded the amount of the advance payment. The
attestation form shall not contain any misleading or inaccurate information. The
commissioner may issue a bulletin or promulgate a regulation that describes the
parameters of an attestation form.
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(6)
This section does not prohibit an insurer from restricting payment in cases of
suspected fraud (California Insurance Code section 10103.7(b)).
Estimate Reconciliation: If losses are settled on the basis of a written scope and/or
estimate provided by or for the insurer, the insurer must provide the claimant with a copy
of the written scope and/or prepared estimate of the settlement. The prepared estimate
shall provide the claimant with an amount that will restore the damaged property to no
less than its prior condition before the loss that meets trade standards of good and
workmanlike construction.
Reasonable steps must be taken to verify the repair and rebuilding costs utilized by the
insurer are accurate and representative of costs in the local market area. If the claimant
is able to provide a written estimate that necessary repairs will exceed the written estimate
prepared by the insurer, the insurer must:
(1)
pay the difference between its written estimate and a higher estimate obtained by
the claimant,
(2)
promptly provide the claimant with the name of at least one repair individual or
entity that will make the repairs for the amount of the written estimate, or
(3)
adjust any written estimates prepared by the repair individual or entity of the
insured's choice and provide a copy of the adjusted estimate to the claimant.
Specifically, California Code of Regulations, Title 10, section 2695.9(d) states the
following:
imant with the name of at least one repair individual or
entity that will make the repairs for the amount of the written estimate, or
(3)
adjust any written estimates prepared by the repair individual or entity of the
insured's choice and provide a copy of the adjusted estimate to the claimant.
Specifically, California Code of Regulations, Title 10, section 2695.9(d) states the
following:
(d) If losses are settled on the basis of a written scope and/or estimate prepared by or
for the insurer, the insurer shall supply the claimant with a copy of each document
upon which the settlement is based. The estimate prepared by or for the insurer shall
be in accordance with applicable policy provisions, of an amount which will restore the
damaged property to no less than its condition prior to the loss and which will allow
for repairs to be made in a manner which meets accepted trade standards for good
and workmanlike construction. The insurer shall take reasonable steps to verify that
the repair or rebuilding costs utilized by the insurer or its claims agents are accurate
and representative of costs in the local market area. If the claimant subsequently
contends, based upon a written estimate which he or she obtains, that necessary
repairs will exceed the written estimate prepared by or for the insurer, the insurer shall:
(1) pay the difference between its written estimate and a higher estimate obtained
by the claimant; or,
r or its claims agents are accurate
and representative of costs in the local market area. If the claimant subsequently
contends, based upon a written estimate which he or she obtains, that necessary
repairs will exceed the written estimate prepared by or for the insurer, the insurer shall:
(1) pay the difference between its written estimate and a higher estimate obtained
by the claimant; or,
(2) if requested by the claimant, promptly provide the claimant with the name of at
least one repair individual or entity that will make the repairs for the amount of the
written estimate. The insurer shall cause the damaged property to be restored to
no less than its condition prior to the loss and which will allow for repairs in a
manner which meets accepted trade standards for good and workmanlike
construction at no additional cost to the claimant other than as stated in the policy
or as otherwise allowed by these regulations; or,
Guide for Adjusting Property Claims
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Page 17

(3) reasonably adjust any written estimates prepared by the repair individual or
entity of the insured's choice and provide a copy of the adjusted estimate to the
claimant.
Time Limit to Collect Full Replacement Costs: An insured will have no less than 12
months (from the date that the first payment toward the actual cash value is made) to
collect the full replacement cost of the loss, subject to the policy limit. In the event of a
loss relating to a “state of emergency,” as defined in California Government Code section
8558, an insured will have no less than 36 months (from the date that the first payment
toward the actual cash value is made) in order to collect the full replacement cost of the
loss, subject to the policy limit. Additional extensions of six months shall be provided to
policyholders for good cause. Specifically, California Insurance Code sections 2051.5(a),
(b), and (c) state the following:
8558, an insured will have no less than 36 months (from the date that the first payment
toward the actual cash value is made) in order to collect the full replacement cost of the
loss, subject to the policy limit. Additional extensions of six months shall be provided to
policyholders for good cause. Specifically, California Insurance Code sections 2051.5(a),
(b), and (c) state the following:
(a)(1) Under an open policy that requires payment of the replacement cost for a loss,
the measure of indemnity is the amount that it would cost the insured to repair, rebuild,
or replace the thing lost or injured without a deduction for physical depreciation, or the
policy limit, whichever is less.
(a)(2) If the policy requires the insured to repair, rebuild, or replace the damaged
property in order to collect the full replacement cost, the insurer shall pay the actual
cash value of the damaged property, as defined in California Insurance Code section
2051, until the damaged property is repaired, rebuilt, or replaced. Once the property
is repaired, rebuilt, or replaced, the insurer shall pay the difference between the actual
cash value payment made and the full replacement cost reasonably paid to replace
the damaged property up to the limits stated in the policy.
(b)(1)(A) A time limit of less than 12 months from the date that the first payment toward
the actual cash value is made shall not be placed upon an insured in order to collect
the full replacement cost of the loss, subject to the policy limit.
(b)(1)(B) In the event of a loss relating to a “state of emergency,” as defined in
California Government Code section 8558, a time limit of less than 36 months from
the date that the first payment toward the actual cash value is made shall not be placed
upon the insured in order to collect the full replacement cost of the loss, subject to the
policy limit.
(b)(1)(C) This section does not prohibit an insurer from allowing the insured additional
time to collect the full replacement cost.
vernment Code section 8558, a time limit of less than 36 months from
the date that the first payment toward the actual cash value is made shall not be placed
upon the insured in order to collect the full replacement cost of the loss, subject to the
policy limit.
(b)(1)(C) This section does not prohibit an insurer from allowing the insured additional
time to collect the full replacement cost.
(b)(2) An insurer shall provide to a policyholder one or more additional extensions of
six months for good cause pursuant to subparagraph (A) or (B) of paragraph (1) if the
insured, acting in good faith and with reasonable diligence, encounters a delay or
delays in approval for, or reconstruction of, the home or residence that are beyond the
control of the insured. Circumstances beyond the control of the insured include, but
are not limited to, unavoidable construction permit delays, the lack of necessary
construction materials, or the unavailability of contractors to perform the necessary
work.
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(c)(1) In the event of a total loss of the insured structure, a policy issued or delivered
in this state shall not contain a provision that limits or denies, on the basis that the
insured has decided to rebuild at a new location or to purchase an already built home
at a new location, payment of the building code upgrade cost or the replacement cost,
including any extended replacement cost coverage, to the extent those costs are
otherwise covered by the terms of the policy or any policy endorsement. However, the
measure endorsement. However, the measure of indemnity shall not exceed the
replacement cost, including the building code upgrade cost and any extended
replacement cost coverage, if applicable, to repair, rebuild, or replace the insured
structure at its original location.
erage, to the extent those costs are
otherwise covered by the terms of the policy or any policy endorsement. However, the
measure endorsement. However, the measure of indemnity shall not exceed the
replacement cost, including the building code upgrade cost and any extended
replacement cost coverage, if applicable, to repair, rebuild, or replace the insured
structure at its original location.
(c)(2) Notwithstanding any other law, for a residential property insurance policy, the
measure of damages available to a policyholder to use to rebuild or replace the
insured home at another location shall be the amount that would have been
recoverable had the insured dwelling been rebuilt at its original location, and a
deduction for the value of land at the new location shall not be permitted from that
measure of damages. However, the measure of indemnity shall not exceed the cost,
including the building code upgrade cost and any extended replacement cost
coverage, if applicable, to rebuild the insured structure at its original location.
Proof of Loss Less Than 100 Days after the Loss
In the event of a loss relating to a state of emergency, as defined in Government Code
Section 8558, an insurer shall not require the insured to provide proof of loss less than
100 days after the loss (California Insurance Code section 2051.5(b)(3)(A)).
Submission of Proof of Loss for Good Cause
In the event of a loss relating to a state of emergency, as defined in Government Code
Section 8558, the insurer shall provide to the insured one or more additional extensions
of three months for submission of proof of loss for good cause if the insured, acting in
good faith and with reasonable diligence, encounters a delay in providing proof of loss
that is beyond the control of the insured. Circumstances beyond the control of the insured
may include, but are not limited to, any of the following, where applicable to the specific
claim:
more additional extensions
of three months for submission of proof of loss for good cause if the insured, acting in
good faith and with reasonable diligence, encounters a delay in providing proof of loss
that is beyond the control of the insured. Circumstances beyond the control of the insured
may include, but are not limited to, any of the following, where applicable to the specific
claim:
(i)
Delays by the insurer in acknowledging the claim or providing the claimant
necessary forms, instructions, and reasonable assistance, including, but not
limited to, specifying the information the claimant must provide for proof of loss.
(ii)
For personal property coverage, the fact that a personal property inventory is
premature if the primary structure has not yet commenced construction.
(iii)
The unavailability of contractors to either perform the necessary work or create
an estimate to rebuild, repair, or replace.
(iv)
The disability, injury, or incapacity of the insured.
Guide for Adjusting Property Claims
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Page 19

(v)
The inability of the insured to access the insured property as a result of
governmental action or because the insured property is located in an area that
is exposed to hazardous materials posing a health risk (California Insurance
Code section 2051.5(b)(3)(B)).
Investigation: The insurer shall conduct and diligently pursue a thorough, fair, and
objective investigation and cannot persist in seeking information not reasonably required
for or material irrelevant to the resolution of a claim dispute (California Code Regulations,
Title 10, section 2695.7(d)).
Changing Claims Adjusters – Primary Point of Contact: If, within a six-month period,
the company assigns a third or subsequent adjuster to be primarily responsible for a
claim, the insurer shall provide the insured with a written status report
ion not reasonably required
for or material irrelevant to the resolution of a claim dispute (California Code Regulations,
Title 10, section 2695.7(d)).
Changing Claims Adjusters – Primary Point of Contact: If, within a six-month period,
the company assigns a third or subsequent adjuster to be primarily responsible for a
claim, the insurer shall provide the insured with a written status report. The written status
report must include a summary of any decisions or actions that are substantially related
to the disposition of a claim, including, but not limited to, the amount of losses to structures
or contents, the retention or consultation of design or construction professionals, the
amount of coverage for losses to structures or contents, and all items of dispute
(California Insurance Code section 2071).
Note: In addition to the above, California Insurance Code section 14047 requires for a
claim arising from a state of emergency, if, within a six-month period, an insurer assigns
a third or subsequent first-party real or personal property claims adjuster, the insurer shall
establish a primary point of contact for the insured and provide the insured one or more
direct means of communication with the primary point of contact (California Insurance
Code section 2071).
Specifically, the primary point of contact shall be available to respond to inquiries by the
insured related to the residential property insurance claim. Other claims personnel,
vendors, or professionals, including clerical staff members and call center staff members,
may work on portions of the insured’s claim. Once assigned, the primary point of contact
shall remain assigned to the insured’s claim until the insurer determines that the
residential property claim is closed or litigation has been filed.
The insurer is required to ensure the primary point of contact refers and transfers an
insured to the appropriate supervisor with a span of control over the primary point of
contact upon the request of the insured
d, the primary point of contact
shall remain assigned to the insured’s claim until the insurer determines that the
residential property claim is closed or litigation has been filed.
The insurer is required to ensure the primary point of contact refers and transfers an
insured to the appropriate supervisor with a span of control over the primary point of
contact upon the request of the insured. This process shall be satisfied by a referral to a
first-tier or second-tier manager with authority over claim handling (California Insurance
Code section 14047).
Appraisal: In the event of a government-declared disaster, as defined in the California
Government Code, appraisal may be requested by either the insured or the insurance
company but shall not be compelled (California Insurance Code section 2071).
Once the appraisal provision under an insurance policy is invoked, the appraisal process
shall not include any legal proceeding or procedure not specified under California
Insurance Code section 2071. Nothing herein is intended to preclude separate legal
proceedings on issues unrelated to the appraisal process (California Code Regulations,
Title 10, section 2695.9(e)).
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Suits: No suit or action on this policy for the recovery of any claim shall be sustainable in
any court of law or equity unless all the requirements of this policy shall have been
complied with and unless commenced within 12 months next after inception of the loss.
If the loss is related to a state of emergency, the time limit to bring suit is extended to 24
months after inception of the loss (California Insurance Code section 2071).
Betterment, Depreciation, Salvage: When the amount claimed is adjusted because of
betterment, depreciation, or salvage, all justification for the adjustment shall be contained
in the claim file
after inception of the loss.
If the loss is related to a state of emergency, the time limit to bring suit is extended to 24
months after inception of the loss (California Insurance Code section 2071).
Betterment, Depreciation, Salvage: When the amount claimed is adjusted because of
betterment, depreciation, or salvage, all justification for the adjustment shall be contained
in the claim file. Any dollar amount adjustments shall accurately reflect the value of the
betterment, depreciation, or salvage. Any adjustments for betterment or depreciation
must reflect a measurable difference in market value attributable to the condition and age
of the property and apply only to property normally subject to repair and replacement
during the useful life of the property. The basis for any adjustment must be fully explained
to the claimant in writing.
Under a policy, subject to California Insurance Code section 2071, where the insurer is
required to pay the expense of repairing, rebuilding, or replacing the property destroyed
or damaged with other of like kind and quality, the measure of recovery is determined by
the actual cash value of the damaged or destroyed property, as set forth in California
Insurance Code section 2051. Labor expenses to repair, rebuild, or replace insured
property is not a component of physical depreciation and is not subject to depreciation or
betterment. Specifically, California. Code Regulations, Title 10, section 2695.9(f) states
the following:
f recovery is determined by
the actual cash value of the damaged or destroyed property, as set forth in California
Insurance Code section 2051. Labor expenses to repair, rebuild, or replace insured
property is not a component of physical depreciation and is not subject to depreciation or
betterment. Specifically, California. Code Regulations, Title 10, section 2695.9(f) states
the following:
(f) When the amount claimed is adjusted because of betterment, depreciation, or
salvage, all justification for the adjustment shall be contained in the claim file. Any
adjustments shall be discernable, measurable, itemized, and specified as to dollar
amount, and shall accurately reflect the value of the betterment, depreciation, or
salvage. Any adjustments for betterment or depreciation shall reflect a measurable
difference in market value attributable to the condition and age of the property and
apply only to property normally subject to repair and replacement during the useful life
of the property. The basis for any adjustment shall be fully explained to the claimant
in writing.
(1) Under a policy, subject to California Insurance Code section 2071, where the
insurer is required to pay the expense of repairing, rebuilding or replacing the
property destroyed or damaged with other of like kind and quality, the measure of
recovery is determined by the actual cash value of the damaged or destroyed
property, as set forth in California Insurance Code section 2051. Except for the
intrinsic labor costs that are included in the cost of manufactured materials or
goods, the expense of labor necessary to repair, rebuild, or replace covered
property is not a component of physical depreciation and shall not be subject to
depreciation or betterment.
Guide for Adjusting Property Claims
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Page 21
ction 2051. Except for the
intrinsic labor costs that are included in the cost of manufactured materials or
goods, the expense of labor necessary to repair, rebuild, or replace covered
property is not a component of physical depreciation and shall not be subject to
depreciation or betterment.
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Prohibited Conduct:
• No Attempts to Settle Unreasonably Low – Insurers shall not attempt to settle a
claim by making a settlement offer that is unreasonably low. The Department will
consider the evidence offered to determine whether or not the settlement offer is
unreasonably low (California Code Regulations, Title 10, section 2695.7(g)).
• Claims Settlement Practices – Discrimination by insurers in their claims settlement
practices are strictly prohibited. Claims must be accepted or denied, in whole or in
part, on a timely basis and denials must be made in writing (California Code
Regulations, Title 10, section 2695.7(a)).
• Referrals – Insurers cannot recommend or suggest a building contractor unless the
insured was informed in writing of the right to select a repair individual or entity and
expressly requests or agrees to use the individual or entity building contractor. The
insurer shall restore the damaged property to no less than its condition prior to the
loss and repaired in a manner that meets acceptable trade standards for good and
workmanlike construction at no additional cost to the claimant other than as stated in
the policy or allowed by regulations (California Code Regulations, Title 10, sections
2695.9(b) and (c)).
• Settlements – The insurer is not to delay or deny settlement of an insured’s claim on
the basis that responsibility for payment should be assumed by other persons, except
provided by the insurance policy provisions, California statutes, or regulations,
including those pertaining to coordination of benefits (California Code Regulations,
Title 10, section 2695.7(e))
tions
2695.9(b) and (c)).
• Settlements – The insurer is not to delay or deny settlement of an insured’s claim on
the basis that responsibility for payment should be assumed by other persons, except
provided by the insurance policy provisions, California statutes, or regulations,
including those pertaining to coordination of benefits (California Code Regulations,
Title 10, section 2695.7(e)).
• Claimant’s Rights – An insurer shall not inform a claimant that the claimant’s rights
may be impaired if a form or release is not completed within a specified time period
unless the information is given for the purpose of notifying the claimant of any
applicable statute of limitations or policy provision or the time limitation within which
claims are required to be brought against state or local entities (California Code
Regulations, Title 10, section 2695.7(i)).
• Polygraph Examination – Insurers cannot request or require an insured to submit to
a polygraph examination unless authorized under the applicable insurance contract
and state law (California Code Regulations, Title 10, section 2695.7(j)).
• Documented Telephone Conversation – Insurers shall not deny a claim based upon
information obtained in a telephone conversation or personal interview with any
source unless the telephone conversation or personal interview is documented in the
claim file pursuant to the provisions of California Code Regulations, Title 10, section
2695.3 (California Code Regulations, Title 10, section 2695.7(l)).
• Complaints – The insurer cannot require that an insured withdraw, rescind, or refrain
from submitting any complaint to the Department regarding the handling of a claim or
any other matter complained of as a condition to settlement of the insurance claim
(California Code Regulations, Title 10, section 2695.7(o))
e 10, section
2695.3 (California Code Regulations, Title 10, section 2695.7(l)).
• Complaints – The insurer cannot require that an insured withdraw, rescind, or refrain
from submitting any complaint to the Department regarding the handling of a claim or
any other matter complained of as a condition to settlement of the insurance claim
(California Code Regulations, Title 10, section 2695.7(o)).
Statute of Limitation: Except where a claim has been settled by payment, every insurer
shall provide written notice of any statute of limitation or other time period requirement
upon which the insurer may rely to deny a claim. Such notice shall be given to the claimant
not less than sixty (60) days prior to the expiration date; except, if notice of claim is first
received by the insurer within that sixty days, then notice of the expiration date must be
given to the claimant immediately. With respect to a first party claimant in a matter
involving an uninsured motorist, this notice shall be given at least thirty (30) days prior to
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 22

the expiration date; except, if notice of claim is first received by the insurer within that
thirty days, then notice of the expiration date must be given to the claimant immediately.
This subsection shall not apply to a claimant represented by counsel on the claim matter
(California Code Regulations, Title 10, section 2695.7(f)).
Prompt Payment: Within 30 days of accepting a claim in whole or in part and, when
necessary, upon receipt of a properly executed release, an insurer is to issue payment in
the amount that has been accepted by the insurer or otherwise take action to perform its
claim obligation (California Code Regulations, Title 10, section 2695.7(h)).
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 23
a claim in whole or in part and, when
necessary, upon receipt of a properly executed release, an insurer is to issue payment in
the amount that has been accepted by the insurer or otherwise take action to perform its
claim obligation (California Code Regulations, Title 10, section 2695.7(h)).
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 23

California Department of Insurance Enforcement
The Department is authorized to take a range of enforcement actions against a licensee
or an adjuster not licensed in California for the misconduct of the adjusters not licensed
in California.
Specifically, California Insurance Code section 14064.5 states, in part, the Insurance
Commissioner may, at any time, deny, suspend, or revoke a nonlicensed adjuster’s
registration under California Insurance Code section 14022.5, or impose a restricted
registration, in the same manner and on the same grounds as the Commissioner may for
a license as set forth in California Insurance Code sections 14026.5 through section
14028.5, inclusive.
In addition, the Commissioner may deny, suspend, revoke, or restrict an adjusting firm’s
license if a nonlicensed adjuster, registered by the firm pursuant to California Insurance
Code section 14022.5, commits an act that would give rise to suspension, revocation, or
restriction of the adjusting firm’s license under California Insurance Code sections 14038,
14039, or 14061 through 14064, inclusive.
Similarly, California Insurance Code section 14065 states, in part, that the Commissioner,
in lieu of suspending or revoking a license issued under this chapter for violations of
California Insurance Code sections 14061, 14063, 14064, and 14064.5, may impose a
civil penalty not to exceed five hundred dollars ($500) upon a licensee, if the
Commissioner determines that a penalty better serves the purposes of this law.

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 24
cense issued under this chapter for violations of
California Insurance Code sections 14061, 14063, 14064, and 14064.5, may impose a
civil penalty not to exceed five hundred dollars ($500) upon a licensee, if the
Commissioner determines that a penalty better serves the purposes of this law.

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 24

Additional Adjuster Training
Training for Evaluating Earthquake Damage
California Insurance Code section 10089.3 and in California Code of Regulations, Title
10, section 2695.42 state insurers are required to provide training regarding the handling
of earthquake claims to insurance adjusters who evaluate earthquake claims for or on
behalf of the insurer. The insurer may
provide the training directly or have the
training provided by another entity. In
addition, the insurer is required to ensure
that the course of instruction meets all
requirements set forth in this section. An
adjuster trained and accredited by one
insurer is be deemed accredited in order to
adjust claims for a different insurer unless
such
insurer
includes
additional
requirements. The content of the training
required shall include the following topics:
(a) The California Fair Claims Settlement Practices Regulations: California Code of
Regulations, Title 10, sections 2695.1 through 2695.14, inclusive. Demonstration of
compliance with the annual training and certification requirements of California Code of
Regulations, Title 10, section 2695.6 shall satisfy an insurance adjuster's training
requirements prescribed by this subsection.
topics:
(a) The California Fair Claims Settlement Practices Regulations: California Code of
Regulations, Title 10, sections 2695.1 through 2695.14, inclusive. Demonstration of
compliance with the annual training and certification requirements of California Code of
Regulations, Title 10, section 2695.6 shall satisfy an insurance adjuster's training
requirements prescribed by this subsection.
(b) Determination of Scope of Loss: Adjusters shall be trained how to conduct a
thorough examination of the property to be inspected, including, but not limited to: attics,
crawlspaces, roofs, chimneys, foundations, and structural areas. The adjuster shall be
trained how to make a complete listing of all recent earthquake damage. Training shall
include building code upgrade issues and procedures to be followed if additional hidden
earthquake damage is found after repair of earthquake damage has begun.
(c) Loss Estimation Techniques: Adjusters shall be trained how to create or obtain an
accurate estimate of all covered earthquake damage. The adjuster shall be trained
regarding the appropriate level of detail to be contained in the estimate and the
documentation necessary to support the estimate. Adjusters shall be trained to reevaluate
the estimate if the actual costs of repair differ from the costs listed on the original estimate.
(d) Determination of Necessity for Engineer or Expert: Adjusters shall be trained how
to evaluate visible damage and indicia of hidden damage to determine when to consult
with an engineer or other expert.
(e) California Department of Insurance Earthquake Mediation Program: Adjusters
shall receive training regarding the Earthquake Claims Mediation Program of the
Department set forth in California Insurance Code section 10089.70 and California Code
of Regulations, Title 10, sections 2696.1 through 2696.10.

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 25
Department of Insurance Earthquake Mediation Program: Adjusters
shall receive training regarding the Earthquake Claims Mediation Program of the
Department set forth in California Insurance Code section 10089.70 and California Code
of Regulations, Title 10, sections 2696.1 through 2696.10.

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 25

(f) Assessment of Damage to Concrete Surfaces and Foundations: Adjusters shall
be trained on the basic techniques used to determine the difference between preexisting
cracks in the concrete of structures and new cracks caused by an earthquake. Complete
training pursuant to this subsection shall include methodology for determining when repair
or replacement of the concrete is appropriate and proper methods for concrete repair
including, but not limited to, injected epoxy methods.
(g) Subsequently Discovered Earthquake Damage: Adjusters shall be trained on the
basic requirements of current law regarding the obligation of the insurer to investigate any
earthquake damage that is discovered or reported and when it may be appropriate to
seek legal counsel to assist in making this determination.
(h) Programs Designed to Assist Earthquake Victims: Adjusters shall be trained
regarding the existence of United States Small Business Administration and Federal
Emergency Management Agency or other similar programs intended to assist earthquake
victims. Training pursuant to this subsection shall include an overview of these programs
and deadlines, and how these programs and deadlines interact with the underlying
earthquake insurance claim.
_____________________________
For more information and additional earthquake related training, please review the
California Earthquake Authority website.

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 26
verview of these programs
and deadlines, and how these programs and deadlines interact with the underlying
earthquake insurance claim.
_____________________________
For more information and additional earthquake related training, please review the
California Earthquake Authority website.

Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 26

Additional Adjuster Training
Flood Training
National Flood Insurance Program
Updated by NFIP
The Federal Emergency Management Agency (FEMA) requires all insurance adjusters
who adjust flood losses for the National Flood Insurance Program (NFIP) to have an
active NFIP flood control number (FCN). The following are FEMA’s adjustment standards
and requirements that clarify NFIP expectations of flood adjusters as outlined in the NFIP
Claims Manual, published June 2025. FEMA has also published the Standard Flood
Insurance Policy Commentary that serves as a quick reference document for claims
professionals to find current NFIP
guidance relevant to key provisions and
concepts contained within the Standard
Flood Insurance Policy (SFIP).
Adjuster Claims Professionals
Expectations
FEMA expects claim professionals who
handle NFIP losses to adopt FEMA’s
core values of compassion, fairness,
integrity, and respect.
FEMA Core Values
Compassion: Be empathetic to the stressful circumstances the policyholder may be
experiencing and your crucial role in helping their recovery. Every interaction with the
policyholder is an opportunity to cultivate a relationship.
Fairness: Strive to achieve principled, well-reasoned, and just outcomes in the execution
of all claims, and adjust each claim fairly and without unnecessary delay.
Integrity: Integrity is the foundation of all our actions and is central to our conduct.
Maintain the highest standards of integrity by creating a culture of honesty, consistency,
and predictability. Trust is the earned result of conducting our actions with integrity
d, well-reasoned, and just outcomes in the execution
of all claims, and adjust each claim fairly and without unnecessary delay.
Integrity: Integrity is the foundation of all our actions and is central to our conduct.
Maintain the highest standards of integrity by creating a culture of honesty, consistency,
and predictability. Trust is the earned result of conducting our actions with integrity.
Failure to adhere to the highest standards reflects poorly on the NFIP.
Respect: Treat all policyholders with dignity and respect. This is not only important, but
it is also their right.
Customer Service Standards
Be Professional:
FEMA expects that claims professionals:
•
Know the unique reporting requirements of the NFIP;
•
Communicate the coverage and limitations to policyholders during the inspection;
Adjust all claims in compliance with the SFIP, the NFIP Claims Manual, and any
applicable bulletin issued by FEMA after publication of the NFIP Claims Manual;
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 27

•
Help the policyholder document their loss as completely and accurately as
reasonably possible;
•
Respond promptly to all inquiries, be available to answer questions, update the
policyholder about the status of their claim, and present clear and correct
information about their claim;
•
Include all allowances payable in the policy in the estimate. NFIP coverage differs
from other insurance policies; therefore, claims professionals may need to spend
additional time addressing differences with the policyholder;
•
Explain coverage early in the claim process in a clear manner
holder about the status of their claim, and present clear and correct
information about their claim;
•
Include all allowances payable in the policy in the estimate. NFIP coverage differs
from other insurance policies; therefore, claims professionals may need to spend
additional time addressing differences with the policyholder;
•
Explain coverage early in the claim process in a clear manner. For example, post-
FIRM elevated building and basement coverage can confuse the policyholder and
require additional explanation;
•
Set reasonable expectations with the policyholder and ensure that they understand
what is required to complete the adjustment of their claim; and
•
Be considerate of the policyholder’s time, keep appointments, and honor their
commitments.
Be Prepared
FEMA expects claims professionals to:
•
Have their resources on hand and understand all three SFIP forms (Dwelling,
General Property, and Residential Condominium Building Association Policy
(RCBAP). Policies written under a Group Flood Insurance Policy (GFIP), a policy
covering all individuals named by a state as recipients under section 408 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (P.L. 93-288 §
408, 42 U.S.C. § 5174), will only be assigned to adjusters by NFIP Direct. All claims
professionals must have a good command of the SFIP and its application of
coverages so they can successfully support the policyholder;
•
Ensure adjusting software is calibrated correctly for the geographic area where the
loss occurred and that it accounts for post-disaster and property- specific issues;
•
Offer an advance payment to the policyholder with an eligible claim and always
check for new guidance on advance payments; and,
•
Know when to engage outside professional services on adjustments and, when
necessary, seek the appropriate authorization in a timely manner
tly for the geographic area where the
loss occurred and that it accounts for post-disaster and property- specific issues;
•
Offer an advance payment to the policyholder with an eligible claim and always
check for new guidance on advance payments; and,
•
Know when to engage outside professional services on adjustments and, when
necessary, seek the appropriate authorization in a timely manner.
Be Compassionate
FEMA expects:
•
Claims professionals must remember that the flood loss may create a traumatic
experience and response by the policyholder. Claims professionals often work with
people under stress and should recognize this and create a positive policyholder
claims experience.
•
Claims professionals should be flexible based on the circumstances affecting the
policyholder. This may mean making reasonable changes to accommodate the
needs of the policyholder when it comes to inspecting the loss, discussing the
claim, and returning phone calls and emails.
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 28

NFIP Adjuster Participation
In addition to the expectations set out in the prior section, FEMA knows that adjusters are
the face of the NFIP to our policyholders. Adjusters will likely be the first, and perhaps the
only, NFIP representative a policyholder meets after a flood. The NFIP depends on the
adjusters’ expertise and compassion to help our policyholders recover from what may be
a devastating experience for them.
The adjuster collaborates with the claims examiner to guide a policyholder through the
NFIP claims process.
Role of the Adjuster
FEMA expects every adjuster handling NFIP flood losses:
•
Adjusters do not have the authority to accept or deny coverage on behalf of the
NFIP. This remains the responsibility of the Write Your Own (WYO) company or
NFIP Direct
devastating experience for them.
The adjuster collaborates with the claims examiner to guide a policyholder through the
NFIP claims process.
Role of the Adjuster
FEMA expects every adjuster handling NFIP flood losses:
•
Adjusters do not have the authority to accept or deny coverage on behalf of the
NFIP. This remains the responsibility of the Write Your Own (WYO) company or
NFIP Direct. Adjusters are authorized to explain the policy to the policyholder and
make recommendations to the insurer;
•
To communicate to the policyholder that the adjuster does not have the authority
to approve or deny a claim;
•
To understand that all adjustments are only recommendations subject to review by
the NFIP insurer;
•
To adjust all claims in compliance with the SFIP, the NFIP Claims Manual, and any
applicable bulletin issued by FEMA after publication of the NFIP Claims Manual;
•
To review and explain the building estimates and proactively assist policyholders
with the contents claim and proof of loss; and
•
To help the policyholder to document their loss as completely and accurately as
reasonably possible.
Adjusters must adhere to the WYO company’s reporting procedures and guidelines for
whom they received loss assignments and forward any questions requiring clarification
through the WYO company’s internal chain of command.
NFIP Knowledge
FEMA expects every adjuster handling NFIP flood losses to follow the guidance provided
in the NFIP Claims Manual and be knowledgeable of the provisions, exclusions and
restrictions of the SFIPs. If additional guidance is needed the adjuster should ask whether
an NFIP bulletin was published providing policy and claim clarifications issued after the
NFIP
Claims
Manual
publication.
NFIP
Bulletins
are
located
at
https://agents.floodsmart.gov/bulletins.
Note: If you would like to be included on the Write Your Own (WYO) Bulletin distribution
list, please e-mail with the subject: Subscribe - WYO Clearinghouse Mailing List
uster should ask whether
an NFIP bulletin was published providing policy and claim clarifications issued after the
NFIP
Claims
Manual
publication.
NFIP
Bulletins
are
located
at
https://agents.floodsmart.gov/bulletins.
Note: If you would like to be included on the Write Your Own (WYO) Bulletin distribution
list, please e-mail with the subject: Subscribe - WYO Clearinghouse Mailing List.
Required NFIP Adjuster Registration for Independent Adjusters
In order to adjust flood losses for the NFIP, independent adjusters must (1) register with
the NFIP and (2) possess an active Flood Control Number (FCN). To receive an FCN, an
independent adjuster must possess the requisite qualifications and attend and
successfully complete an annual NFIP claims presentation. This webinar provides six
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 29

hours continuing education credit hours in the state of California, 2026 NFIP Claims
Adjuster Presentation. These claims presentations keep the adjusting community current
on NFIP claims procedures and guidance.
Adjuster Qualifications
The NFIP requires independent adjusters to possess certain qualifications to adjust
different property types. FEMA will verify these credentials prior to issuing an FCN to an
adjuster. Adjusters may only perform flood claim inspections in the categories displayed
on their FCN cards. The following table details what types of properties an adjuster can
adjust for a given level of expertise.
Adjuster Qualifications
Property Type
Residential and Manufactured Home (Mobile) Home/Travel Trailer
Registration Requirements
•
Have at least four years of full-time property loss adjusting experience.
•
Be capable of preparing an accurate scope of damage and dollar estimate to
$50,000 for manufactured (mobile) homes and up to $250,000 for residential
losses.
•
Attend the annual NFIP claims presentation
tions
Property Type
Residential and Manufactured Home (Mobile) Home/Travel Trailer
Registration Requirements
•
Have at least four years of full-time property loss adjusting experience.
•
Be capable of preparing an accurate scope of damage and dollar estimate to
$50,000 for manufactured (mobile) homes and up to $250,000 for residential
losses.
•
Attend the annual NFIP claims presentation.
•
Have attended an NFIP claims presentation and be able to demonstrate
knowledge of the Standard Flood Insurance Policy (SFIP) and of NFIP
adjustment criteria for all policy forms.
•
Be familiar with manufactured (mobile) home and Increased Cost of Compliance
(ICC) adjusting techniques.
Property Type
Commercial and RCBAP Losses
Registration Requirements
•
Have at least five years of full-time large-loss property adjusting experience.
•
Be capable of preparing an accurate scope of damage and dollar estimate of
$500,000 or more for commercial losses.
•
Be capable of preparing an accurate scope of damage and dollar estimate of
$1,000,000 or more for RCBAP losses.
•
Submit written recommendations from three insurance company supervisory
or claim management personnel. The recommendations must verify adjusting
experience only.
Adjuster Registration Process
The Adjuster Registration Application contains four registration categories. Adjusters may
register for any or all categories for which they satisfy the qualification requirements. The
categories are:
•
Residential (Dwelling)
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 30
verify adjusting
experience only.
Adjuster Registration Process
The Adjuster Registration Application contains four registration categories. Adjusters may
register for any or all categories for which they satisfy the qualification requirements. The
categories are:
•
Residential (Dwelling)
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 30

•
Manufactured (Mobile) Home/Travel Trailer
•
Commercial
•
Condominium (RCBAP)
New applicants and adjusters seeking to add categories to their existing registration must
submit a completed Adjuster Registration Application by email to the NFIP:
Email: NFIPAdjusterMailbox@fema.dhs.gov
Adjusters in active status do not need to submit an application unless required by FEMA, or
if registering to handle claims for a different property type. The NFIP will automatically renew
active adjusters when they attend and successfully complete the annual NFIP claims adjuster
presentation.
FEMA will notify new adjusters and adjusters seeking to add a category to their
classification whether FEMA approves or denies their application. This notification will
occur by email. Adjusters approved or renewed by FEMA will additionally receive their
FCN card via email.
Important: Adjusters who do not attend or successfully complete an annual NFIP claims
presentation become inactive. Inactive adjusters cannot adjust flood claims until they attend
an approved NFIP claims presentation and are reactivated by FEMA and will maintain their
original FCN.
Flood Adjuster Capacity in Program (FACP):
FEMA expects that all of its partners will handle NFIP claims consistently with the NFIP
standards and expectations, a consumer-focused quality claim handling experience. The
FACP sets minimum training standards for use by WYO Companies and independent
adjusting firms for the development and training of individuals who wish to handle NFIP
flood claims
lood Adjuster Capacity in Program (FACP):
FEMA expects that all of its partners will handle NFIP claims consistently with the NFIP
standards and expectations, a consumer-focused quality claim handling experience. The
FACP sets minimum training standards for use by WYO Companies and independent
adjusting firms for the development and training of individuals who wish to handle NFIP
flood claims. To this end, FACP requires there be (1) training, (2) documented adjuster
performance, (3) active supervision, and (4) operational oversight.
Adjusters registered under the FACP must have an active FACP FCN to work flood claims
for FEMA. FACP adjusters may only perform flood claim inspections under the Dwelling
Form.
Through the FACP, the NFIP establishes a pool of registered adjusters for its
stakeholders. The FACP classifies adjusters into levels based on a set of criteria.
The intent of the FACP is to attach a measure of competence at each level, establish
levels of required supervision, and to accommodate the NFIP’s ability to surge based on
the needs of its partners at the time of a disaster. The FACP, by design, encourages the
NFIP Direct, WYO companies, and independent adjusting firms to jointly enhance the
recruitment, training, and professional development of NFIP claims adjusters.
While FACP allows for customization, FEMA expects that all of its partners will handle
NFIP claims consistently with the NFIP standards and expectations, a customer-focused
quality claim handling experience. To this end, FACP requires there be (1) training, (2)
documented adjuster performance, (3) active supervision, and (4) operational oversight.
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 31
ll of its partners will handle
NFIP claims consistently with the NFIP standards and expectations, a customer-focused
quality claim handling experience. To this end, FACP requires there be (1) training, (2)
documented adjuster performance, (3) active supervision, and (4) operational oversight.
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 31

Code of Conduct
Individuals handling NFIP claims will maintain the highest standards of honesty,
impartiality, character, and conduct to ensure the proper performance of NFIP business
and the continued trust and confidence of the NFIP policyholders. Adjusters must conduct
themselves with courtesy and integrity, a deep sense of responsibility for policyholder
trust, and promptness in dealing with and serving the policyholder.
Adjusters will display a standard of professional behavior that reflects positively upon and
will be a credit to both themselves and the NFIP.
FEMA does not accept any professional conflict of interest. Any independent adjuster or
adjusting firm who performs work on behalf of the NFIP, or who is registered in the FACP,
may not perform any services, including support, inspections, consulting, or estimating,
for or as a public adjuster (licensed or not) or give representation adverse to the NFIP.
Adjusters also may not adjuster claims for property in which the adjuster or immediate
family member owns an interest, nor can an adjuster accept any money from a third party
to steer business to a specific firm or individual. Adjusters and adjusting firms may not
accept monetary or non-monetary incentives from policyholders. If a conflict is identified,
an adjuster’s registration will be deferred for one year to ensure interests have ended and
will not reoccur. In addition, the use of the FCN for any purpose other than adjusting a
flood insurance claim on behalf of an NFIP insurer is improper and may result in
immediate suspension or revocation of the FCN
ept monetary or non-monetary incentives from policyholders. If a conflict is identified,
an adjuster’s registration will be deferred for one year to ensure interests have ended and
will not reoccur. In addition, the use of the FCN for any purpose other than adjusting a
flood insurance claim on behalf of an NFIP insurer is improper and may result in
immediate suspension or revocation of the FCN. FEMA may refer to improper usage of
the FCN to investigators as necessary to protect the integrity of the NFIP.
Complaint Handling
FEMA will investigate all complaints asserting a violation of the Code of Conduct to
confirm the validity of the complaint. WYO companies, NFIP Direct, and adjusting firms
also have an obligation to protect the integrity of the NFIP. When a WYO company, NFIP
Direct, or adjusting firm becomes aware of a violation, they must conduct an internal
investigation. If a violation is confirmed, they will immediately notify FEMA and provide all
supporting documentation, including their findings and recommendations. If FEMA
determines that there was a violation of the NFIP’s Code of Conduct, FEMA will act to
revoke the FCN for a period necessary to remedy the underlying violation, which in no
case will be less than one year from the date the violation ceased.
Documentation can be sent by email to the NFIP:
Email: NFIPAdjusterMailbox@fema.dhs.gov
The Department does not regulate the NFIP. Flood insurance is a federal program.
Please contact the NFIP for additional information.
For information on adjuster participation in the National Flood Insurance Program, please
review
the
following
link:
https://agents.floodsmart.gov/topics/flood-insuranceadjuster#nfip-adjuster
Guide for Adjusting Property Claims
in California After a Major Disaster – January 9, 2026
Page 32

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- [CA Insurance Notice: 2005 Advisory Notice: Property and Casualty Rate Increase —Application 2005 Advisory Notice: Property and Casualty Rate Increase —Applications Which Exceed the Statutory Thresholds Set Forth in California Insurance Code Section 1861.05(c)(3)   (February 18, 2005)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Advisory-Notice-February-18-2005.md)
- [CA Insurance Notice: 2005 Life Insurance and Annuity Contract Form Filings —under AB 2384 ( 2005 Life Insurance and Annuity Contract Form Filings —under AB 2384 (January 12, 2005)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-January-12-2005.md)
- [CA Insurance Notice: 2005 Notice of Change in Year End Review Procedures —Effective July 1, 2005 Notice of Change in Year End Review Procedures —Effective July 1, 2005](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-July-1-2005.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CA_INS_N_2026-Guide-for-Adjusting-Property-Claims-in-California-After-a-Major-Disaster-Final. Check the current official text before relying on it. Not legal advice.