The Unwind

Wildfire Recovery Guide: Navigating Insurance Claims and Next Steps

Written by Noah Riley | Jan 9, 2025 6:43:33 PM

With thousands of structures lost to recent wildfires in Los Angeles, many homeowners and business owners face the daunting task of recovery. 

The two most important things to know are:

  • Document everything - damage, expenses, conversations etc.
  • Consult with a construction professional before accepting any "final" payment

This guide provides practical steps to help you navigate the insurance claims process and begin rebuilding.  

Step 1: Filing Your Insurance Claim
  • Act Quickly: Once you and your family are safe, call your insurance provider to file a claim. Provide detailed information about the damage.

  • Expect Delays: Wildfire claims can take months or even years to resolve, depending on the extent of the damage and the volume of claims in your area.

Step 2: Immediate Relief
  • Advance Payments: If your home is destroyed during a state-declared emergency, insurers must pay at least one-third of the estimated value of your belongings and four months of rent upfront.

  • Cash Advances: Request advances for living expenses, such as renting furniture or buying essentials.

Step 3: Documentation and Organization
  • Start a Recovery Diary: Keep detailed notes of conversations with your insurer, including dates, names, and summaries of discussions.  Document conversations with detailed follow-up emails capturing the key takeaways.

  • Inventory and Photos: Before cleaning or removing debris, be sure to communicate with your insurance adjuster, photograph the damage and list all destroyed property.

  • Save Receipts: Document all expenses, including hotel stays and pet boarding, to support your claim.

Step 4: Working with Adjusters
  • Paper Trails: Send follow-up emails to confirm what was discussed with your adjuster.

  • Get a Second Opinion: Review settlement offers with a construction professional before accepting.

  • Public Adjusters: Consider hiring a public adjuster to advocate for you, but note they charge a fee.

Step 5: Understanding Coverage
  • Policy Limits: Insurance typically covers rebuilding or repairing your home to its original quality but not upgrades.

  • Business Claims: For businesses, gather records of damaged inventory, equipment, and financial documents to support claims for property damage and business interruption coverage.

Additional Support
  • Local Assistance Centers: Obtain replacement documents (e.g., passports, licenses) and property tax reassessments. Mental health resources are also available.

  • Federal Aid: Register with FEMA if the disaster is federally declared.

  • Consumer Advocacy: Visit United Policyholders, an advocacy group for the insured, to learn more about your rights.
  • State Resources: See the California Department of Insurance's Top Ten Tips for Wildfire Claimants.
Avoid Rushing Decisions
  • Pause Before Signing: Avoid making hasty decisions or signing documents under pressure. Vet contractors and adjusters carefully.

If You Lack Insurance
  • Limited Options: FEMA may provide some assistance, but rebuilding without insurance is challenging. Seek local resources to piece together support.

Renters
  • What’s Covered: Renter’s insurance typically covers personal belongings and temporary housing but not structural damage, which is the landlord’s responsibility.

Recovering from a wildfire is a complex process, but with careful planning and persistence, you can navigate the challenges ahead. Stay organized, seek professional advice when needed, and prioritize your safety above all else.