GARDEN GROVE, Calif. (KABC) — Residents forced to evacuate parts of Orange County last month after a chemical tank crisis in Garden Grove say they are struggling to recover out-of-pocket costs, with some insurance claims quickly denied.<\/p>\n
A fund created to support about 50,000 affected residents has stopped accepting applications after receiving more than 6,000 requests, according to the Orange County United Way.<\/p>\n
With that option closed, many evacuees have turned to their insurance providers – with mixed results.<\/p>\n
On May 22, authorities ordered evacuations after firefighters warned that a tank holding toxic chemicals at GKN Aerospace could explode or spill, putting lives at risk. Among those affected was Jeff Goddard of Cypress, who fled with his family.<\/p>\n
“I’m married. I have a wife, three kids, we have animals and so trying to find a place where you can actually go on such short notice on a holiday weekend? Not very easy,” Goddard said.<\/p>\n
The family secured a hotel in Manhattan Beach, where they stayed for four nights until it was safe to return home. Between lodging and food, they spent just under $2,000.<\/p>\n
“You’re trying to get back to normal life and so then you start looking into some of the different things you’re going to do,” Goddard said.<\/p>\n
At first, he tried to access community funds promoted by city leaders but was unsuccessful.<\/p>\n
“We sat on hold for like three hours and then never ended up getting through so it was a little frustrating,” he said.<\/p>\n
Goddard then reviewed his renters insurance policy and found a loss-of-use clause, noting that explosions were listed among covered perils. He expected his claim to be approved.<\/p>\n
“Literally within a day, we got a call back from the adjuster, explained our case to them and within five minutes of explaining the case, they said, ‘Oh, well you’re denied. Sorry,'” he said.<\/p>\n
A denial letter stated that the possibility of an explosion did not meet the policy’s coverage requirements.<\/p>\n
“It was really disheartening afterwards to have your insurance company tell you that had the tanks exploded, you would have been covered,” Goddard said.<\/p>\n
Consumer advocates say such denials raise concerns about how policies are interpreted. Amy Bach, executive director of the nonprofit United Policyholders, believes the denial undermines the system.<\/p>\n
“I think that’s a really dicey position for them to be taking,” Bach said.<\/p>\n
She added that the outcome may leave policyholders facing an uphill battle.<\/p>\n
“What are they saying here? They’re saying you should have ignored the evacuation? So bottom line, of course, we’d like to see these claims get covered, but for a lot of the policyholders, they’re going to have to fight,” Bach said.<\/p>\n
Goddard has filed a complaint with the California Department of Insurance.<\/p>\n
In the meantime, he says the experience has left his family both frustrated and financially strained.<\/p>\n
“That’s not the way you want your insurance company to treat you,” he said. “When you need them, they’re not there standing with you.”<\/p>\n
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