Flood Watch Posted for Southern California

Last month it was fires and now it is flooding.

Officials in Southern California are warning residents of the potential for flooding as a cold, wet and windy storm intensified early Monday, threatening flooding in Southern California burn areas and causing slick driving conditions.

The California Highway Patrol had reported more than three dozen traffic collisions on local freeways overnight, while large amounts of snow has forced the closure of Interstate 15 through the Cajon Pass. Flooding was also noted along the 105 Freeway near LAX and the 118 Freeway in Chatsworth.

The storm is expected to deposit up nearly three-quarters of an inch to 1 1/2 inches of rain on coastal and valley areas and up to twice that amount on the foothills and mountains.

Areas in Los Angeles, Orange and Ventura counties that were impacted by recent wildfires are also being closely watched.

Homeowners and residents in all recent burn areas were encouraged to prepare their properties ahead of the rainstorms by getting sandbags from Los Angeles City Fire stations. Fire officials note when sandbags are filled and deployed properly, they redirect water and debris flows away from homes and property.

Residents will not be able to rest after Monday's storm, as another storm is possible Tuesday night and Wednesday.

$1.43M in Disaster Aid Approved for Fire Victims

The Governor's Office of Emergency Services (OES) and the Federal Emergency Management Agency (FEMA) announced that Californians who suffered losses from the wildfires are approved for more than $1.43 million in disaster assistance, so far. Approximately $1.2 million of that amount is in the hands of applicants.

"It's important for homeowners, renters and business owners to call FEMA's toll-free registration number 1-800-621-3362 (FEMA) or go online at www.fema.gov and register for federal-state aid if they had wildfire damages," said Mark Neveau, federal coordinating officer.

The current federal-state disaster aid tally is:

• 1,419 applicants registered

• $1,431,640 in grants approved for housing assistance.

• 655 home inspections completed

• 1,994 applicant visits to either Local Assistance Centers (LACs) or Disaster Recovery Centers (DRCs).

Aid Available for Wildfire Victims

The federal disaster declaration for the wildfires that began Friday, Nov. 13, opens the door for recovery assistance for residents of Los Angeles, Orange, Riverside and Santa Barbara counties, according to officials from the Federal Emergency Management Agency (FEMA) and the Governor's Office of Emergency Services (OES).

Disaster assistance may include:

• Grants from FEMA for rental payments for temporary housing, if not covered by insurance, if you cannot live in your home or apartment. Initial assistance may be provided for up to two months for homeowners and at least one month for renters. Payments may be extended after the initial period based on a review of your needs.
  
  
• Grants from FEMA for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.
  
  
• Low-interest disaster loans from the U.S. Small Business Administration (SBA) which can cover uncompensated losses for personal property, including automobiles, up to $40,000 for both homeowners and renters, and up to $200,000 for homeowners for physical damage to their primary residence. SBA loans also may be used to pay for insurance deductibles.
  
  
• Low-interest business loans are also provided by SBA for up to $2 million for uncompensated physical losses suffered by businesses of any size and private, nonprofit organizations. Additionally, working capital loans are available for economic injuries sustained by small businesses and most private, nonprofit organizations of all sizes in the declared counties and the adjoining counties. The combination of the two business loans cannot exceed $2 million.
  
  
• Grants from FEMA and the State of California to replace personal property and help meet medical, dental, funeral, transportation and other serious disaster-related needs not covered by your insurance or other federal, state and charitable aid programs.
  
  
• Grants administered by the California Department of Social Services' (CDSS) State Supplemental Grant Program (SSGP) may assist with eligible items not already addressed by the FEMA grant, SBA or insurance. Individuals who receive a maximum FEMA grant will have their applications automatically transferred to SSGP for consideration. Additional information is available by calling 1-800-759-6807.
  
  
• Loans from the Farm Service Agency of the U.S. Department of Agriculture up to $500,000 for farmers, ranchers and aquaculture operators to cover production and property losses, excluding primary residence.
  
  
• Tax relief guidance for people and businesses affected by the wildfires is provided by the Franchise Tax Board (FTB). California matches the postponement period announced by the Internal Revenue Service giving affected taxpayers an automatic postponement to Feb. 11, 2009, for returns that would have been due between Nov. 13, 2008, and Feb. 11, 2009. Taxpayers who have questions can call FTB toll-free at 1-800-852-5711, Monday through Friday, 7 a.m. to 6 p.m.

How to Apply for Assistance:

If you live in one of the declared counties, you can apply for aid from FEMA, SBA and the state by phone from 8 a.m. to 10 p.m. daily. To register, call (800) 621-FEMA (3362) or go online at www.fema.gov (TTY 800-462-7585). Completing the application takes approximately 20 to 30 minutes. You don't have to visit a Local Assistance Center (LAC) to register.

State Tax Help Available for Wildfire Victims

The Franchise Tax Board (FTB) announced special tax relief for California taxpayers affected by the recent wildfires in Southern California.

"By immediately claiming a disaster loss on their tax returns, those who lost their homes or suffered property damages can quickly get some financial relief,” said State Controller and FTB Chair John Chiang. “The FTB can also help them replace tax records and other important paperwork lost in the fires.”

The wildfires were declared a Federal disaster this week, and affected taxpayers are able to claim disaster losses in the current or prior tax year. Claiming the loss on a 2007 tax return filed earlier this year will allow FTB to issue refunds as quickly as possible.

Counties declared a major disaster area are: Los Angeles, Orange, Riverside, and Santa Barbara. Specifically included were the Tea Fire in Santa Barbara County, the Sayre fire in Los Angeles County, and Triangle Complex (formerly named Freeway Complex) fire in Orange and Riverside Counties.

Taxpayers claiming the disaster loss should write “Southern California Wildfires 2008” in red ink at the top of their tax return to alert FTB to expedite the refund. If taxpayers are e-filing, they should follow the software instructions to enter the disaster information. Taxpayers can get FTB’s amended 2007 tax return or original 2007 tax return at FTB’s Web site, ftb.ca.gov.

Taxpayers needing copies of lost or damaged state returns should complete Form FTB 3516, “Request for Copy of Tax Return,” available online. Disaster victims can receive copies of tax returns for free. Print “Southern California Wildfires 2008” in red ink at the top of the request.

To learn more about disaster losses, refer to publications FTB 1034 “Disaster Loss” at ftb.ca.govIRS 547, “Casualties, Disasters, and Thefts” at irs.gov. or the

Taxpayers who have questions about their accounts can call FTB toll-free at 800.852.5711 Monday through Friday from 7 a.m. to 6 p.m.

Assistance Available for Fire Victims

With displaced residents of the weekend fires now returning to their neighborhoods, several home and business owners are now finding themselves facing dozens of questions before they rebuild.

To help navigate the insurance recovery process, the Insurance Information Network of California offers the following advice to those whose property has been damaged or destroyed:

• Call your insurance agent or insurance company and report the damage. Most homeowner policies cover additional living expenses and will advance money if there is a need for temporary shelter, food or clothing. For insurance claim contact numbers, visit the IINC Web site at www.iinc.org.
• If your home or business has been damaged but not destroyed, make temporary repairs where possible to prevent any further damage. Save receipts for supplies and materials purchased as the insurance company will reimburse for any reasonable expenses for these temporary repairs.
• Prepare for the adjuster’s inspection. Take the time to inspect the property in advance and note anything that you would like the adjuster to see. Provide the adjuster with a list of the damaged items, photographs, receipts, bills and any other relevant paperwork. Doing so will help the adjuster correctly determine the value of destroyed property. Information on how to create an inventory and free inventory software is also available at the IINC Web site at www.iinc.org.
• Maintain a recovery diary or log of all phone calls, emails and meetings about the insurance claim.
• Be wary of those seeking your business. Contractors, public adjusters and attorneys may all try to get you to sign on the bottom line. Check licenses of contractors and public adjusters with the State Contractors License Board (www.cslb.ca.gov) and the California Department of Insurance (www.insurance.ca.gov). Be aware that if you sign a contract with an outside claims intermediary, your insurer is precluded from working with you directly. In addition, intermediaries’ fees in most instances are not paid by insurers; they are incurred and paid by policyholders.

To view a copy of the brochure, “Settling Insurance Claims After a Disaster,” visit the IINC Web site at http://www.iinc.org/articles/282/1/Settling-Claims-After-A-Disaster/Page1.html.

Photo: Courtesy of Reuters

State Fund Extends Credit for Its Fire Victims

California's State Compensation Insurance Fund announced it will extend credit to policyholders who have suffered financial loss or business disruption caused by the fires in Montecito, Orange County and Sylmar.

To date, more than 900 residences and structures have been lost due to the flames and more than 35,000 acres burned and an untold number of businesses have suffered damages.

"With the fires being concentrated in densely populated areas, we understand that these fires have caused significant hardship to some of our policyholders," said State Fund President Jan Frank. "We are prepared to help our policyholders through credit relief as they return to normal operations."

Dedicated customer service lines have been set up to provide assistance to policyholders. State Fund will work with employers who are unable to report payroll figures or submit payments or have been cancelled for credit for reasons related to the fires.

State Fund representatives will review accounts and grant a 30-day credit extension, a 3-month payment plan or if necessary, withdraw cancellation and reinstate the policy.

Policyholders are encouraged to contact the customer service line, 800-388-0902 to make arrangements.

Firefighters Get an Upper Hand on Wildfires

Although conditions have swung in the favor of firefighters in Southern California, officials report that it will be a few more days before they will likely have control of several blazes that have destroyed or damaged more than 800 homes in the greater Los Angeles area.

Blazes have roared from Santa Barbara to Anaheim since Thursday, as high temperatures, high winds, low humidity and dry conditions have made for a deadly mix. To date, some 35,000 acres of land have been scorched.

The worst losses have been in the Sylmar area where hundreds of homes were lost in the Oakridge Mobile Home Park.

The largest of three fires, the Freeway Complex fire, had scorched approximately 24,000 acres in Orange, Los Angeles and Riverside counties. Most of the damage was in Orange County in the suburbs of Anaheim and Yorba Linda, with more than 100 homes reportedly destroyed.

Finally, the Tea fire in the Santa Barbara area destroyed more than 100 homes. Officials reported it was 80 percent contained as of Monday morning.

UPDATE: Several Wildfires Continue Burning

Several wildfires continue to burn in Southern California Tuesday morning, fueled by Santa Ana winds and dry brush.

To date:

• Two major fires -- the Marek and Sesnon blazes -- have burned more than 15,000 acres in the hills and mountains north of Los Angeles.

• At Camp Pendleton, near Oceanside, a fire has burned more than 3,000 acres and forced the evacuation of Marines from their barracks and other personnel from the base.

• A fast-moving fire east of San Diego that started early Tuesday led to the evacuation of 300 homes in the Campo area, near the Mexican border.

California Gov. Arnold Schwarzenegger declared a state of emergency in Los Angeles and Ventura counties on Monday, and local officials are urging President Bush to issue a federal disaster declaration.

The Marek fire, burning at the northeastern end of the valley, had charred nearly 5,000 acres in the Angeles National Forest, according to officials.

That fire destroyed 39 homes, including some 30 mobile homes, and five outbuildings in the Lopez Canyon area.

In October of 2007, fires fueled by Santa Anas destroyed 2,196 homes and burned a combined 800 square miles in Southern California.

AIG Sub to Pay San Diego $1.625M to Settle Claim

Lexington Insurance Co., a subsidiary of AIG, will pay the City of San Diego $ 1.625 million to settle a claim brought by the city to recoup lost revenues from a Chargers game that was canceled as a result of the 2003 wildfires.

According to the city attorney's office, San Diego officials determined the Oct. 27, 2003, Monday Night Football game between the San Diego Chargers and Miami Dolphins could not be played at Qualcomm Stadium because of ash and smoke, so the game was moved to Tempe, Arizona, which at the time was home to the Arizona Cardinals. As a result, the city lost out on about $500,000 from its cut of stadium sales, taxes and other revenues.

Following the fires, city officials filed a claim with Lexington Insurance Co. in an effort to recover some of the money. The claim was intially denied, so city officials sued the insurer in 2006 in an effort to recover the money.

Lexington Insurance recently said it would pay the city $1.625 million to close the lawsuit.

UPDATE: Wildfires Kill One; Still Burning

Authorities reported Monday that a pair of Los Angeles area wildfires that are being driven by strong Santa Ana winds have killed a man, while destroying several dozen mobile homes.

The fires continued to threaten neighborhood outside of downtown Los Angeles, along with forcing evacuations.

Firefighters continued to battle a 3,700-acre blaze in the San Fernando Valley's northeastern corner as a new blaze formed at midmorning a few miles to the west in mountains above the Porter Ranch area.

The fatality reportedly occurred at the first fire. The victim was a man who appeared to be a transient living in a makeshift shelter, according to authorities.

A number of "suspicious" fires involving a few acres were reported Monday at various areas in the county, some near the Antelope Valley (14) Freeway, according to authorities. Officials urged people to call authorities if they witness anything suspicious.