PG&E Restructuring After Some Face Hurdles with Their Insurance

The Camp Fire is now months behind the state of California after it ripped through in November and wreaked havoc on the entire city of Paradise. Many individuals wonder what is going to happen when it comes to their claims and what PG&E is planning for the future so that individuals can work toward receiving the compensation they deserve to move forward. Today we want to take a close look at PG&E’s business restructuring plans and how many people are dealing with ill effects from their insurance.

Insurance Issues for Some Affected By the Fire

Many individuals have been receiving similar responses after filing their claims, believing that they will return home to the town they loved when the fire settled and it was time for insurance claims to process. However, many insurance companies are now playing particular mind games with those who have been affected by the Camp Fire and notifying families that they will not be renewing homeowner’s coverage. At a time when it is most difficult to obtain homeowner’s insurance in areas that were affected by the Camp Fire, this can spell trouble for many people.

The California Department of Forestry and Fire Protection states that about 10% of buildings in Paradise are still standing after last month’s wildfire. A new law took effect in January that requires insurers to renew homeowner’s coverage on properties that were affected by the Camp Fire but are still standing. Now, many people who did not entirely lose their home do not have the same protections as somebody who received a total loss of their home and absolutely needs to be covered.

With many people being turned away by insurance companies, people are left to struggle as they look for new policies and hope that they will be able to fix their homes and return home once more. The California Insurance Commissioner Ricardo Lara pushed to ensure that continued coverage continues for at least one year for those with properties in these immense fire zones. As of now, many companies have gone belly-up because of insurance policies in these risky zones and not being able to cover all that has been lost. Many insurance companies are making sure that they do not have too many policies in a zone where fires are more likely to take place because of the negative implications that can be had during an extreme loss such as this one.

Left with few options, some people are looking to get away from Paradise – and quickly, as they list their homes and hope that the few standing will be enough to grab attention and move forward with their lives.

PG&E Moves to Restructure 

While many people fight with the insurance companies after losing everything, one other company is going through immense changes as well – PG&E, who is being held liable for the Camp Fire and working through the beginning stages of bankruptcy. The company has recently announced that it will only be expecting five out of 10 of its directors to be re-elected in a restructuring that could completely change the face of the company.

Many individuals, especially those who have lost their homes, lost loved ones, and been injured by the Camp Fire are now wary of PG&E and the devastation that it caused through its negligent actions. Because of this, the utility released a statement saying that it needs to work to re-earn trust and credibility with its customers and the entire community and that they will be adding fresh perspectives through new elections into the board to help address challenges the business is facing as they move forward.

This comes after the utility company has filed for Chapter 11 bankruptcy in January to restructure and attempt to solve the issues of not being able to cover damages and many other aspects following this huge wildfire. The company listed in its bankruptcy that it has more than $50 billion in liabilities. They are also facing a lawsuit on behalf of 35 families, which might continue to grow in time.

It is believed that those who had trust and faith in the company to pull through for them with damages will not be as pleasant of an experience as once expected. For instance, the bankruptcy filing could not only hut stockholders and retirees, but it will also impact the families that filed their claims for losses such as the loss of loved ones who were unable to get out of their homes during the fire.

The 2018 Camp Fire caused the death of at least 85 people and now many could be expecting much smaller settlements. However, PG&E stands by its decision, which was made because of the lawsuits and not being able to cover these losses without bankruptcy.

Liability is no longer an issue, as Cal Fire investigators have determined that, in June 2018, PG&E’s equipment is legally liable for at least 17 major wildfires that happened in the prior year, some of which took homes and caused injuries as well as major property loss. However, the extensive investigation into the Camp Fire continues at this time as many wait in anticipation to find out if their claims will move forward and if they will ever receive the damages they are expecting so that they can gain normalcy in their lives.

Turning to the Help of an Attorney 

At Marlene Leiva Law Group, our experienced and dedicated wildfire accident attorneys have handled many cases of wildfires in the past and understand that the effects can be both devastating and traumatic in nature. If you are looking to file a lawsuit for the Camp Fire so that you can recover compensation for the damages that you have sustained, it is imperative to protect your rights under California law and start working with an attorney who has handled many cases like yours before and knows how to deal with other attorneys and insurance companies who might not have your best interest. We will protect you in full during this difficult time. Please do not hesitate to contact us for help you deserve at 415-459-7300.