California Fires Remind Consumers of Importance of House Insurance

Ongoing wildfires in the state of California are serving as a reminder of the importance of investing in a good house insurance policy.

This week, California's insurance commissioner, Steve Poizner, reminded affected homeowners to check whether their policies cover living expenses if they are subject to mandatory evacuation orders.

The fires have charred thousands of acres of land in California while destroying a number of homes and displacing entire neighborhoods.

Poizner also advised homeowners who may be affected by the fires to take an inventory of belongings and valuables, including ones that are rarely used, should the need to replace them arise. He also suggested keeping digital pictures of the items as well as 24-hour contact information for one's insurance company. Keeping one's personal documents, such as birth certificates, house deeds and backup computer disks in a safe place, is also advised.

A Los Angeles Times report this week noted that the fires are likely to result in higher house insurance premiums for state residents, with some companies having already raised their rates as much as 7 percent over the past year.