Wildfires, like those occurring recently in Southern California, result in catastrophic destruction to homes and belongings. It’s devastating to see and life-altering to experience. The severe, widespread damage also makes having a solid plan for completing the claims process even more critical for recovery.
As wildfires become a year-round threat, residents in the highest-risk areas should be prepared for the unthinkable. In just five Western states – California, Colorado, Texas, Oregon and Arizona – more than 2 million homes are at extreme risk of wildfire (Triple-I, 2018). Fortunately, there are steps you can take to help a wildfire claim go smoothly and successfully.
We’ve compiled these six essential tips to help you navigate your homeowner's insurance policy and maximize your settlement.
After finding a safe place to stay, your first step in the aftermath of a wildfire should be to document all damage. Take clear photographs of any damage to your home, including the interior and exterior. Create an itemized list of destroyed or damaged belongings, noting each item's value and attaching any receipts or warranty documents you can locate. Organized documentation and solid evidence of your losses are your best path to a strong claim.
Even if your home does not catch fire, it can sustain smoke damage from being in proximity to the flames. Smoke damage can appear as black soot that sticks to walls, surfaces, and belongings. It is common to see on building exteriors that narrowly escaped burning, but can also appear inside near windows and doorways or air vents.
Notify your insurance company as soon as possible. Your insurance provider will assign an adjuster to evaluate the damage. Remember, before granting entry to anyone, confirm their identity with your insurance company to avoid falling victim to post-disaster scams. It’s common for criminals to take advantage of the confusion that follows a natural disaster. Caution and scrutiny are your best defenses in these stressful circumstances (CFPB, 2024).
If possible, be present during the inspection to ensure the adjuster sees every affected area of your property. Provide detailed damage descriptions and be proactive in asking questions.
Substantial losses, such as those often resulting from wildfires, can warrant hiring a Public Adjuster to guide your claim. These professionals represent your interests and are experienced in negotiations with insurers. Regardless, an informed and collaborative approach can significantly improve your payout.
It’s best to keep a written record of all interactions with your insurance company. This includes emails and notes on phone conversations. Document any missed appointments or any unprofessional behavior by the insurance adjuster. Save all correspondence regarding policy details or approvals. This documentation will serve as valuable evidence if disputes arise during the claims process or if legal action is necessary in the future.
Be aware of compliance timelines, which insurance carriers sometimes run afoul of during natural disasters that result in a huge rush of claims submitted at the same time. Reference your state’s Department of Insurance for specific compliance guidelines and milestones.
In many cases, a wildfire requires residents to evacuate their homes. If evacuation orders force you to relocate, save all related receipts, including hotel accommodations, restaurant bills, travel costs, and even clothing purchases. Many homeowner insurance policies cover Additional Living Expenses (ALE) when homes become temporarily uninhabitable or inaccessible due to fire (TDI, 2024). For costs that aren't covered, you may also be eligible for disaster assistance from programs like FEMA or the American Red Cross.
Insurers are notorious for underestimating repair and replacement costs. Again, hiring a Public Adjuster may be worthwhile if you feel the insurance company is lowballing your settlement offer. They are experts in identifying all covered damage, deciphering policy language and assessing the actual amount of your losses. Presenting an estimate written by a Public Adjuster (rather than something that a general contractor puts together) will strengthen your case for additional compensation.
If you’re like most homeowners, you probably aren’t that familiar with the details of your property insurance policy. Once you begin pursuing a claim, it’s important to understand what is covered, such as fire damage, smoke damage, and "loss of use" expenses for temporary housing.
Focus specifically on any exclusions or payout limits. If your insurer denies coverage for specific damages or offers a low settlement, request a written explanation detailing the calculations. Most reputable Public Adjusters will examine your policy with you, at no cost, to identify the gaps in your coverage and clarify confusing language.
If a wildfire has damaged your home or you live in an at-risk area, we hope you find these tips helpful. We also invite you to reach out to Tiger Adjusters to schedule a free policy review with one of our licensed Public Adjusters. Our team is ready to stand with you to fight for a fair settlement from your insurance company—reach out.
Triple-I. (2018, April 4.) Background on: Wildfires. Insurance Information Institute. Retrieved January 16, 2025 from https://www.iii.org/article/background-on-wildfires#Homes%20At%20Risk%20For%20Extreme%20Wildfires,%20By%20State,%202023.
CFPB. (2024, March 21). How do I avoid scams and fraud after a disaster?. Consumer Financial Protection Bureau. Retrieved January 17, 2025 from https://www.consumerfinance.gov/ask-cfpb/how-do-i-avoid-scams-and-fraud-after-a-disaster-en-1529/.
TDI. (2024, July 9). When do policies pay for additional living expenses?. Texas Department of Insurance. Retrieved January 17, 2025 from https://www.tdi.texas.gov/tips/additional-living-expenses.html.
