Frequently Asked Insurance Questions

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The answer to this is unfortunately not as simple as it may seem. Even if your policy specifies fire coverage, most homeowner's insurance policies will not come close to covering the actual value of wildfire damages. 

Typical homeowners insurance policies do not offer 100% coverage for homes that are totally lost in fires. This is especially true if you live in a high-risk area for fire, such as in the canyons. In these areas, comprehensive coverage costs extra. Insurance company dollars will be spread thin, leading to many unhappy policyholders. However, there are some protective measures in place that you may be able to take advantage of to ensure you receive 100% policy limits.

The best way to find out whether an insurance company will cover your fire losses is to call your insurance agent and request a certified copy of your insurance policy and declarations page. Do so as soon as possible after you realize your home has sustained damages in a wildfire. The agent will ask you to file a claim with a detailed description and valuation of your losses. An investigation will follow and eventually a settlement will be awarded (ideally) according to the provisions of your policy. 

The problem is, many homeowners overestimate just what their policies cover. We can help you review your policy for a better understanding of what benefits you might receive after a fire. Most homeowners insurance policies will cover up to a maximum amount of damages from wildfires. 

The sooner you can start gathering evidence of your losses, the better. Start gathering all photographs that show your property and belongings before the fire hit. Keep the receipts of money you spend during evacuation, such as on food and shelter. Most policies include additional living expense (ALE) coverage for these costs. Renter’s insurance may also provide this type of coverage, even if the fire did not damage your home. Get a notebook and dedicate it to jotting down the contents of your home as they come to mind. This Home Inventory Guide at the CA Department of Insurance may help.

If you’re one of many homeowners making the unhappy discovery that your policy won’t cover your costs after the fires, don’t give up. There are other means of potentially obtaining compensation for property losses. First, look into the California FAIR plan, which provides property insurance to homeowners as a last resort. If you’ve tried to obtain coverage for your damages to no avail, then you may meet the requirements to qualify for coverage under the FAIR plan.

One of the best things you can do to protect your future after realizing you don’t have enough insurance is to speak to an attorney. Our wildfire litigation team has a combined 75 years of experience representing clients in insurance bad faith and wildfire losses. We've worked with thousands of people in your exact situation. We can help you assess your damages, abide by insurance claim rules, and expedite the claims process. We can also engage in settlement negotiations with insurance companies on your behalf to fight for maximum coverage. 

If our team represents you in a wildfire claim against the power company, please know that we are committed to helping you navigate your insurance policy FREE OF CHARGE, meaning we WILL NOT take ANY percentage of money we help you recover from your own insurance policy.

If your insurer delays or denies your claim, we can go to bat for you to address bad faith dealings. We know how homeowners insurance companies work, and we are committed to helping you receive the best possible compensation for your losses. 

If your provider has agreed to an expedited claims procedure, expect to go through the insurance investigation and claims procedures faster than in a typical claim. You may receive an advanced payment for up to four months of ALE (additional living expenses) costs, including the costs of housing, food, and other necessities during evacuation and while you wait for home repairs. You may also receive an advance on 25% of your policy limit for personal property losses and expedited debris removal.

The expedited claims handling procedure also has provisions in which insurers will give faster payments for damaged or destroyed vehicles. Insurers who agree to the expedited process will offer at least a 30-day extension for insurance payments to policyholders who cannot have mail forwarded or who lose renewal notices. Insurers may use out-of-state claims adjusters while California is in a state of emergency for faster claims processes.

You can help make your insurance claims process as efficient and successful as possible by doing a few things on your end. First, call your insurance agent to report damage as soon as possible. If you can return to your property, do so and take photos and/or video of your home. Write down a detailed list of all the property you lost in the fire. Keep all receipts and documents relating to money you spend during displacement. Cooperate with the requests of your insurance agent. And, as always, for more help, please feel free to contact our lawyers who have decades of experience handling fire insurance claims.