The devastating wildfires in the Los Angeles area have caused at least 28 deaths while destroying 12,000-plus structures and forcing the evacuation of more than 200,000 residents. If you have been impacted by the wildfires, the good news is that unlike certain other types of disasters, such as flooding, damage from fire, including wildfires, is covered under standard homeowners’ insurance policies and renters’ insurance policies. However, as a policyholder, you must carefully manage the claims process and advocate for yourself to ensure you receive the compensation you are entitled to under the terms of your policy.
What Policies Typically Cover
A standard homeowners’ policy covers damage to the home as well as other structures on the property, including those attached and unattached to the home. Personal belongings on the premises are also covered under standard homeowners’ and renters’ policies. The policies cover damage not only from fire, but also from smoke and water used to put out the blaze. If you are under mandatory evacuation orders or your home is uninhabitable due to the wildfires, your policy will also cover living expenses, such as a hotel room and meals out. The comprehensive portion of a standard automobile policy – which 75% of motorists opt for, according to the Insurance Information Institute – covers damage to insured vehicles caused by disasters other than collisions, including fire. All coverages are subject to the policies’ terms and limits.
Protections Mandated by California
Unfortunately, insurance claims can take months or years to be fully resolved. But California mandates that all property insurers doing business in the state provide some immediate relief to impacted homeowners’ and renters’ insurance policyholders. Insurers must immediately pay out a minimum of one-third of the estimated value of a policyholder’s personal belongings, as well as a minimum of four months’ worth of rent for the local area where the policyholder lives.
Filing a Claim
Begin the claims process as soon as possible by contacting your insurance company or agent. If you do not have a complete copy of your policy, request one and ask your agent or insurance company representative to walk you through the coverage you have for repairing or rebuilding your home, your personal belongings and living expenses. Ask them how to most effectively claim your benefits, and be sure to document all conversations. Keep in mind that insurance companies generally have short deadlines for providing notice of claim following an event, as well as submitting your sworn “proof of loss” statement and other information. It is important to comply with the insurer’s requirements in a timely manner.
The insurance company will send a claims adjuster to the property to evaluate the property and prepare an initial assessment of the damage. If the adjuster says something is excluded or subject to certain conditions, ask the adjuster to point to the policy provision that refers to this exclusion or limitation.
When it is safe to do so, document the damage yourself by taking photos or video of the outside of your home and each room inside, and any damaged items. Keep an itemized list of damaged items and their value, and gather receipts and other evidence to support your claim wherever possible. Do not discard any damaged items until the adjuster has finished their assessment.
Save receipts for all out-of-pocket expenses, such as hotel and out-of-home food bills, that you incur due to displacement.
With property claims, disputes often arise over the value of the losses. Be sure to get an estimate from at least one licensed contractor of the cost to repair or rebuild your home. You can then compare this to the number quoted by the insurance company, which may fail to reflect local conditions and the fact that costs typically rise due to supply/demand issues in the wake of a disaster. In some cases, you may be well-served by hiring a public adjuster to help you prove the proper value of your losses. Public adjusters must be licensed by the California Department of Insurance, which maintains a database for checking the public adjuster’s license status and whether there are any enforcement actions against them.
If your insurance company has denied or is challenging your wildfire claim, contact Schwartz Conroy & Hack. We have the expertise, experience and tenacity to make insurance companies keep their promises to you.