Homeowners Protest Unresolved Claims

Each arrived at 20th Century Insurance Co.’s headquarters with an individual tale of woe: an earthquake-damaged house unrepaired after 900-plus days, furniture and rugs ruined by asbestos, a still unsettled insurance claim worth $175,000.

And all 40 members of the Northridge-based group CARe, or Community Assisting Recovery, identified a common culprit--20th Century--and common tactics--alleged low-balling, foot-dragging and changing claims adjusters at whim.

Chanting, “Be fair, settle our claims,” the CARe members asked for relief from 20th Century, which had the second-largest number of claims resulting from the 1994 quake, totaling $1 billion.

More than 1,000 of the 46,368 claims remain unresolved, the company estimates.

Protesters Ina Bornstein and Teri Diamond are among those with unresolved claims. Bornstein, her husband and two children have returned to their kitchen-less, cement-floored Northridge home because they could no longer afford their mortgage and the cost of a rental home while repairs were ongoing. Diamond said her family may have to hire an attorney to reconcile their $265,000 claim, of which 20th Century has paid $75,000.

According to a prepared statement from Ron Brown, the company’s assistant vice president of claims, most of the claims that remain involve additional living expenses due to continuing reconstruction or with “legal issues of applications of coverage and damages.”

“20th Century has attempted to equitably resolve claims from the Northridge earthquake,” Brown said. “. . . It is our continuing hope that these remaining situations can be resolved.”

But that is cold comfort to CARe members such as Diamond who say they can’t get new homeowner’s insurance until their existing claims are settled.

George Kehrer, CARe’s executive director, asked that the company cease its non-renewal of homeowner’s policies, which began in June 1994, negotiate in good faith and settle its claims.

The CARe members are not the only people questioning 20th Century’s practices. The state Insurance Department in May initiated a “market conduct examination” of 20th Century due to complaints that the company dealt unfairly with policyholders in the wake of the Northridge quake.

The probe was prompted by what one Insurance Department spokeswoman called an “excessive” number of complaints. The department has been asked to help resolve 138 open claims involving 20th Century.