8 Steps for Homeowners When Your Property Is Destroyed by a Wildfire
As some of the smoke begins to clear from parts of Southern California this weekend, the toll of several large wildfires is becoming more apparent. Up to 10,000 houses and other buildings It has been burning since last week, causing massive damage to communities throughout the Los Angeles area.
If your home is destroyed or damaged by a wildfire, here’s what you need to know about the insurance claims process, your rights as a homeowner, and how to prepare for what comes next.
Read more: How to protect yourself from smoke during California wildfires
What to do if your home is destroyed or damaged
Once you and your family are safe and the damage to your home can be assessed, you will need to call your insurance company to begin the claims process. Since the process can take several months, it’s important to contact the company as soon as possible.
If your home is completely destroyed and a state of emergency is declared, your insurance company will Legal requirements You can make the minimum payment up front even if the adjuster hasn’t seen your property. This includes one-third of the replacement value of your personal belongings and at least four months of local rent.
Carefully review your homeowners or renters insurance policy, including your limits. Start documenting and create a paper trail to support your claims process. If you have photos of your property and vehicles before the fire, you can use these photos to help fill out your information home inventory Submit one if you haven’t already.
After you’ve inspected your home to see if it’s habitable, documented the damage, and started the insurance claim process, contact your mortgage lender or landlord for next steps.
Feeling overwhelmed? California residents can find resources and helplines Submit a wildfire insurance claim here.
Wildfire damage may or may not be covered by insurance
Depending on your policy, where you live, and how much coverage you pay, your homeowners (or renters) insurance may or may not cover wildfire damage to your home or contents.
Generally, fire is a “protected hazard” in most countries homeowners insurance policy, unless your policy specifically details a wildfire exclusion or you are excluded from coverage or denied coverage.
In some wildfire-prone areas, home insurance policies are more expensive or require a separate wildfire claim deductible. If you live in a home that is considered high risk and you cannot get traditional homeowners insurance, FAIR (Fair Access to Insurance Requirements) Program Basic fire insurance is available.
Read more: Los Angeles County Fires: FEMA assistance now available. Here’s how to apply
How to File a Wildfire Damage Claim in 8 Steps
When a natural disaster upends your life, it’s natural to feel overwhelmed. Here’s what homeowners can do after suffering partial or total loss from a wildfire.
Step 1: Call your home insurance company
Once you’ve reached safety, you can start the claims process to get a down payment to cover your living expenses for a few months. When planning for the long term, be sure to consider your deductible.
Step 2: Inventory the damage
If possible, photograph and detail the damage to your home, vehicle, and personal belongings. If you haven’t done it yet home inventory For insurance purposes, work with a trusted friend or family member to itemize appliances, furniture, electronics, decor, and other equipment along with the brand name and estimated purchase price.
Step 3: Review your policy carefully
Review your home insurance or renters policy, its coverage, and the benefits you are entitled to for personal belongings reimbursement and living expenses. Insurance companies are required to provide this information to you upon request.
one Typical homeowners insurance policy Includes coverage for rebuilding or replacing free-standing structures like your home’s structure and garages, as well as coverage for your home’s personal belongings up to certain limits. Most policies also provide liability coverage and additional living expenses (ALE) coverage.
Step 4: Keep the receipt
Pay close attention to your ALE limit to cover hotel bills or rent, restaurant meals, and other expenses you may incur during home repairs or reconstruction. If your home is destroyed and needs to be rebuilt, you may need at least a year or more of additional living expenses.
Step 5: Be wary of fraud
During a major disaster, it’s easy to fall for rumors or be deceived. Scam. Your neighbor may have a different insurance policy or company, so only work with your insurance company, says Janet Ruizthe nonprofit’s representative in California Insurance Information Institute. Fraud is common. “Unlicensed contractors, unlicensed public adjusters often defraud people who have suffered losses,” Ruiz said.
Step 6: Document Everything
Create a claims folder where you can save notes, recordings, and details of every interaction you have with insurance companies, mortgage companies, and other agencies. The claims process can be lengthy, and you may need to obtain multiple bids and work directly with the contractor.
Step 7: Don’t accept an unfair offer
Working with your claims adjuster is a negotiation process. If the first settlement offer does not fully account for the cost of repairs or reconstruction, you can send a demand letter to seek further payments that are more in line with your coverage limits and the value of your home.
“Often homeowners are on the defensive or don’t ask enough questions of the claims adjuster. If you don’t get answers, seek a supervisor,” Ruiz said.
Step 8: Get professional help if needed
If you’re not sure whether your home insurance company is treating you fairly, many states Provide resources Help with the claims process. You may also seek mediation or involve an attorney as a last resort to resolve a disputed claim.
What to do if your insurance company denies coverage for wildfire insurance
Most states require insurance companies to notify homeowners of cancellations months before the termination date. Ruiz says if you’re denied coverage, it’s important to find a policy with another insurance company, and California FAIR Program Take away all insurable homes.
California Insurance Commissioner Ricardo Lara posted Mandatory one-year suspension Regarding insurance non-renewal and cancellation. People in certain ZIP codes affected by the Southern California fires will not be able to cancel their homeowners policies for a year, regardless of whether they suffered a loss.
If a fire is part of a federally declared disaster, the Federal Emergency Management Agency (FEMA) will provide some support to insured and uninsured homeowners. California homeowners and others affected by Los Angeles fires You can apply for FEMA assistance here.
What you need to know about your mortgage after wildfire damage
Even if your home is a total loss or is deemed uninhabitable, you still have to pay off the remaining mortgage loan. Contact your lender today to find out if you qualify for a payment deferral or deferral while your claim is processed.
Some lenders may be willing to defer payments for three months to a year to wait for insurance payouts. This is critical to protecting your credit score, as late or missed mortgage payments will be reported as delinquent and affect your credit rating.
How to protect your home from future wildfires
As wildfires become more common across the country, many people are taking steps protect their home. some states, such as californiahas created federal, state and local programs to help homeowners mitigate fire risks by retrofitting and fortifying their properties against wildfires.
Home insurance companies may also offer incentives for taking certain steps, such as installing sprinklers, building a defensive perimeter on your property, and upgrading your home with fire-resistant materials.
