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The Eaton Canyon Fire, Palisades Fire, and other wildfires that engulfed parts of California in January 2025 forced countless residents to evacuate, leaving many uncertain about the fate of their properties. Many homeowners remain unsure whether they can rebuild or repair their homes, while others are still waiting to access their properties to assess the damage. Insurers these days face an influx of claims, and navigating this process can be daunting for victims of large-scale disasters.
If you were affected by these wildfires, it is crucial to carefully review your insurance policy to understand your coverage and rights. Knowing the specific terms of your policy, including limits, exclusions, and the claims process, can help you pursue compensation for wildfire-related losses. With preparation and the right information, you can take meaningful steps toward recovering and rebuilding.
Steps To File A Wildfire Insurance Claim
The California wildfires that began on January 7, 2025, have left a trail of devastation, destroying over 12,300 structures (as of 11 a.m. on January 16, 2025) and displacing countless residents. With damages estimated between $250 to $275 billion, these wildfires represent some of the catastrophic natural events in American history. People have lost their homes and sources of income and have to live through the pain of what they experienced.
If you’ve sustained wildfire-related losses, filing an insurance claim is a critical step toward recovery. Here are the steps you can take to file a wildfire insurance claim, from notifying your provider to hiring an attorney.
Call Your Insurance Provider Immediately
Notify your insurance provider early to initiate the claims process. They’ll then assign an adjuster to assess the damage. Remember, many insurance companies have filing deadlines, and delays could result in the denial of your claim. Prompt action is essential to protecting your rights.
Prepare A Copy Of Your Homeowners’ Insurance Policy
Secure a copy of your insurance policy, including the declaration page. Ask your insurer for a copy if you don’t have one. By law, insurers are required to provide it within 30 calendar days. Review your policy for coverage details on home repairs, personal belongings, and living expenses. If you have questions about your policy, don’t hesitate to ask your insurance agent for guidance.
Pay special attention to the Extended Replacement Cost and Building Code Upgrade coverages. The former provides an additional percentage (typically 10% to 50% more) above your insured dwelling amount. It accounts for unexpected increases in construction costs due to factors like material shortages or labor demand after a disaster. The latter pays for the costs of bringing your home up to current building codes during repairs or rebuilding. If your home was built under older codes and new requirements increase rebuilding costs, this coverage pays for the difference.
Take Note Of Your Additional Living Expense (ALE) Limits
Your Additional Living Expense (ALE) coverage helps pay for extra costs incurred if you are displaced from your home due to a covered disaster, such as a wildfire. While you typically have up to 24 months to claim ALE following a declared disaster, it’s important to note that your coverage limit doesn’t increase over time; you can only claim up to the maximum amount specified in your policy.
To make the most of your ALE coverage, manage your expenses carefully. If delays beyond your control, such as permitting or supply chain issues, extend the rebuilding process, you may be eligible for a 12-month extension. Contact your insurer promptly to request an extension if needed.
Keep Track Of All Of Your Additional Expenses
Keep receipts for all related expenses, as they will be necessary for reimbursement. Covered expenses may include:
- Temporary accommodations
- Additional fuel
- Meals
- Parking
- Costs of pet boarding
- Additional utilities
Remember, ALE does not cover regular expenses like mortgage payments, but it helps you maintain your pre-disaster quality of life within policy limits.
Document All Of Your Communications With Your Insurance Company
Keep track of all discussions with your insurance company or adjuster regarding your claim. You can use a journal or “claim diary” to document these interactions. If your adjuster mentions that a particular coverage is limited, excluded, or subject to certain conditions, insist that they refer to the specific section of your policy. Proper documentation can help protect your claim and maintain transparency throughout the process.
Find Out How Much It Will Cost To Rebuild Your Home
Before comparing rebuilding costs to coverage limits, get an estimate from a licensed contractor. Insurance companies may provide estimates, but they may overlook regional factors, such as post-disaster price surges. When contractors and supplies are in short supply following a severe disaster, increased demand may result in higher prices.
Understand Your Rights To Purchase Or Rebuild At Another Location
You are not required to rebuild your home in the same location. If your policy includes Building Code Upgrade or Extended Replacement Cost coverage, it can still cover the costs of rebuilding or purchasing a home elsewhere.
You also have the freedom to choose a contractor rather than using one suggested by your insurer. Alternatively, you may consider participating in a community-wide development project that uses a common builder, which can help reduce individual rebuilding costs.
Assess Your Situation Properly, And Don’t Make Any Impulsive Decisions
Take the time to thoroughly evaluate your situation before making any major decisions. Consider factors like your mortgage, employment stability, finances, and, if applicable, your children’s education. Exercise similar caution when hiring professionals, such as attorneys, contractors, or public adjusters, so that they are aligned with your needs and goals.
Do Not Assume You Have Inadequate Coverage
Unless you have specific information regarding the costs associated with a particular building, please refrain from assuming that your coverage is inadequate. Rebuilding costs and the adequacy of your coverage, including extended replacement costs, depend on your specific situation. If you discover your coverage is insufficient, gather the necessary documents and contact the Department of Insurance for assistance.
Call The Department Of Insurance
If you have issues with your claim or need assistance with the process, you can contact the Department of Insurance Hotline at (800) 927-4357. It is also possible to file a complaint online. Consumer advocates can also offer valuable insights into your situation.
Consult A Wildfire Attorney
You might be wondering, “Do I need a personal injury lawyer? Can I handle my claim on my own?” While it’s possible to manage your claim independently, hiring a wildfire lawyer can provide legal support, especially in complex or high-stakes cases. They can review your insurance policy to identify coverage options, policy limits, and potential exclusions that may affect your claim. If your insurer denies your claim, undervalues your losses, or delays the process, wildfire lawyers can negotiate on your behalf or pursue legal action if necessary.
Important Evidence To Support Your Claim
It is advisable to leave promptly if evacuation orders are in effect in your area. If time permits and you are still preparing to evacuate, please remember to gather important documents. It will also be helpful to have records of your expenses in case you have to relocate. These documents and evidence can support your claim after a wildfire:
- Documentation of Your Home and Belongings — Before you evacuate, take detailed photos or videos of both the interior and exterior of your home. Check if you have a complete inventory of your belongings, including appliances, artwork, jewelry, furniture, and other valuable items.
- Important Records and Documents — Keep important documents easily accessible in case you have to evacuate quickly. To be safe, you can also keep other copies of these documents in case of emergencies, such as wildfires. These important records and documents include:
- Passports, birth certificates, or marriage certificates.
- Insurance policies and other related documents.
- Plans or blueprints of your home.
- Taxes and loan documents.
- Titles or deeds of your house and vehicle.
- Important legal documents, such as wills, trusts, and powers of attorney.
- Stocks and bonds.
- Receipts or Documented Proof of Your Expenses — You can seek reimbursement for the expenses you incur during disasters like wildfires. To do so, save your receipts to maintain a record of your expenses. These records are crucial for obtaining reimbursement under your ALE coverage.
If any important documents are lost due to the wildfire, your wildfire lawyer can assist you in obtaining replacements from government offices, financial institutions, or insurance providers. They can also use the evidence you’ve collected to build your case and pursue compensation.
What To Do If You Don’t Have Insurance
If you don’t have homeowners’ or renters’ insurance, the Federal Emergency Management Agency (FEMA) provides financial assistance to individuals affected by disasters, regardless of their insurance status. FEMA aid covers rent or housing costs, as well as house repair and replacement. Here’s how you can access FEMA relief:
- Fill out the application at DisasterAssistance.gov or on the FEMA app. Alternatively, you can also contact them by phone at 1-800-621-3362.
- Provide your Social Security number, a detailed explanation of the damage, and your yearly family income.
- Include your contact information and bank account details to facilitate a direct transfer.
- If you file for FEMA assistance within 10 days, an inspector will contact you to discuss the damage.
- Within 10 days after that call, you will hear back about your eligibility status. You will receive a check or money deposited into your bank account if you qualify for financial assistance.
Essential Resources For Wildfire Victims
Numerous groups and organizations in the United States offer financial aid and recovery support to victims of wildfires following the disaster. Government agencies also provide additional insurance options in disaster situations. Victims living in Altadena, Pasadena, Malibu, and other communities affected by the Eaton Canyon and Pacific Palisades Wildfires, and other fires in the state, can get financial relief from:
California FAIR Plan
The Fair Access to Insurance Requirements (FAIR) Plan is a state-backed fire insurance program designed to provide coverage for individuals and businesses unable to secure insurance from standard providers. Anyone living or operating a business in California, whether in urban or rural areas, can apply for coverage. The FAIR Plan offers minimal fire protection coverage for high-risk properties. While premiums are often higher than standard insurance, the plan provides basic fire insurance for those who need it most.
With the January 2025 wildfires causing billions of dollars in damage, many traditional insurers may adjust their policies or increase premiums. The FAIR Plan offers a viable option for those seeking coverage in high-risk areas.
SBA Disaster Loans
The U.S. Small Business Administration (SBA) offers low-interest federal disaster loans to individuals and entities affected by declared disasters, such as wildfires. These loans are a vital resource for homeowners, renters, businesses, and private nonprofits to recover from significant damage or economic losses.
These loans are available for the repair and replacement of damaged homes, machinery, equipment, and other business properties. The SBA also provides Economic Injury Disaster Loans (EIDLs) even in the absence of physical damage. These loans can cover payroll, fixed debts, accounts payable, and other disaster-related expenses for eligible entities, like the following:
- Small companies
- Small agricultural cooperatives
- Small enterprises involved in aquaculture
- The majority of private nonprofit organizations
FEMA Individual Assistance
Residents affected by the Hurst Fire, Eaton Canyon Fire, Palisades Fire, and other wildfires in California can apply for FEMA Individual Assistance. This program provides financial aid and essential supplies to individuals and families in designated disaster areas.
FEMA funds can help cover urgent needs, including food, water, infant formula, nursing supplies, medications, and other critical items for daily living. Housing assistance may also be available to those who escaped the flames but are unable to return home. This aid can help cover temporary accommodations, such as staying in a hotel or with relatives or friends. Additionally, qualified survivors may receive funds to cover rent, essential home repairs, personal property damage, and other expenses caused by the wildfires.
American Red Cross
The American Red Cross works with partners to deliver essential services, including food, housing, and counseling, to wildfire victims. During the January 2025 California wildfires, more than 400 volunteers were on the ground, helping victims navigate the aftermath and providing assistance during that challenging time.
Salvation Army
The Salvation Army provides immediate and long-term support to victims of disasters across the United States. They work alongside other nonprofit organizations and first responders to provide relief to survivors. Those who have lost everything in a wildfire can turn to the Salvation Army for help in the form of grants and donations. The organization’s financial assistance program can help families with housing, childcare, transportation, and other essential needs.
Team Rubicon
Team Rubicon, an international nongovernmental organization led by veterans and based in Los Angeles, provides critical disaster response support. To support recovery and response efforts following the January 2025 California wildfires, the group created an emergency operations center (EOC) in its Los Angeles headquarters. The group has a strong history of offering vital support, including supplies, medical care, and shelter, to wildfire victims. They’ve also led mitigation efforts in Hawaii, Colorado, and Alaska.
Team Rubicon volunteers also assist with road debris collection and highway clearing. The purpose of this is to ensure that fire teams can respond early to affected areas.
Veterans Disaster Assistance
Veterans affected by wildfires can call the Veterans Crisis Hotline at 988 and press 1. Texting 838255 or accessing support through online chat is also available. Veterans who are deaf or hard of hearing can call 1-800-799-4889. Numerous resources are available to support veterans during disasters, covering healthcare, housing, benefits, and compensation.
Additional Resources
During challenging times, many businesses step up to support those in need. The Los Angeles Homeless Services Authority maintains a list of companies that offer immediate assistance to LA wildfire victims. Rideshare services like Uber and Lyft offered free rides to shelters and evacuation centers during the January 2025 California wildfires, helping evacuees safely reach the designated safe zones. Telecommunication service providers, such as T-Mobile and AT&T, also offer unlimited calling, texting, and data.
These alternative resources play a vital role in filling gaps while victims await benefits or compensation from formal assistance programs. Businesses and community organizations often provide essential support in the immediate aftermath of a disaster, helping victims meet urgent needs. For additional support, individuals can check the Los Angeles County website, which offers an updated list of wildfire relief resources and services available to affected residents. This resource hub provides victims with access to a wide range of relief options as they work toward recovery.
Protecting Yourself From Insurance Fraud And Scams
While numerous efforts aim to support wildfire victims in California, some unscrupulous individuals may take advantage of vulnerable homeowners during these challenging times. To safeguard yourself from fraud and scams, consider these essential tips:
- Be Careful With Unsolicited Offers — Exercise caution when dealing with individuals or companies that approach you with unsolicited offers. Although not all unsolicited offers are fraudulent, they require thorough scrutiny. Be particularly wary of offers that seem too good to be true. Research the company or individual making the offer. Check reviews, ratings, and references before engaging with them.
- Verify Credentials — There are several methods for verifying the credentials of contractors and adjusters. For instance, you can check the license number of the contractor you are working with at the California Contractors State License Board website.
- Avoid Signing Any Documents Under Pressure — Never sign anything you don’t fully understand. While the aftermath of a tragedy can be overwhelming, it’s crucial to review all documents carefully. Take your time and avoid agreeing to anything until you’ve thoroughly considered the terms.
- Be Wary of Out-of-State Adjusters — While some adjusters may be licensed, they might not be familiar with California’s specific regulations, especially if they’re practicing out of state. If you need to work with an adjuster, it’s wise to consult local professionals who understand the state’s laws and requirements.
Frequently Asked Questions
What Should I Do If My Insurance Company Denies My Claim?
If your insurance company denies your wildfire claim, don’t panic. Your insurer is required to provide a written explanation for denying your claim. Review this document carefully to understand the reasons for the denial. Common reasons may include insufficient documentation, exclusions in your policy, or disputes over the extent of the damage. Identifying the basis of the denial is critical to planning your next steps.
If you believe your claim was unfairly denied, you may file a complaint with the California Department of Insurance. It’s also a good idea to consult a wildfire attorney. They can thoroughly review your policy and denial letter to identify errors or unfair practices. They can also negotiate with your insurer to resolve disputes. If necessary, they can represent you in court to pursue compensation for your losses.
How Long Do I Have To File A Wildfire Insurance Claim?
In most policies, claims must be filed within a year of the disaster. However, some insurance plans may have shorter coverage periods, so remember to check your policy details. It is advisable to submit your claim as soon as possible to avoid any further issues.
If negligence played a role in the wildfire, California law generally allows you to file a lawsuit for property damage within three years of the incident and a personal injury claim within two years. For claims against government entities, the deadlines can be significantly shorter (sometimes as short as six months). A wildfire injury attorney can help you understand the specific time limits applicable to your case.
How Much Can I Expect To Receive From My Insurance Company?
The amount you may receive depends on your specific insurance policies, including any add-ons you selected upon enrollment. Generally speaking, insurance companies are only obligated to pay for “like and kind” damage. It means that you may seek compensation for the same amount as it will cost to build or renovate similar houses.
I’m A Renter. What Will My Insurance Cover?
As a renter, your insurance policy generally does not cover wildfire damage to the structure of your leased or rented property. The responsibility for repairing or replacing the property itself typically falls to your landlord, whose insurance policy should address such damages. However, your renter’s insurance policy is designed to protect your personal belongings and may also provide coverage for temporary living expenses if you are displaced due to a wildfire.
It’s important to note that some renters’ insurance policies, particularly in high-risk areas such as California, may exclude coverage for wildfire damage. Contact your insurance provider to review your policy and clarify what it does and does not cover.
Need Help Filing An Insurance Claim? Contact Arash Law!
Wildfires have devastated communities across California, leaving thousands of people struggling to rebuild their lives. Navigating the complexities of healthcare, legal matters, and insurance claims after such catastrophic losses can feel overwhelming. You may want to consider seeking support during this time.
At Arash Law, we understand the challenges of recovering after such a disaster. Our experienced wildfire lawyers are dedicated to helping residents and business owners understand their rights, negotiate with insurance companies, and pursue compensation for the losses they incur. Call us at (888) 488-1391 or complete our contact form. We provide free, no-obligation initial consultations.
Our firm also handles other types of personal injury cases. For instance, our car accident lawyers have helped numerous auto accident victims seek compensation for their injuries. We also represent victims of dog bite incidents, truck collisions, pedestrian accidents, and other similar cases. Regardless of your legal situation, we are prepared to stand by your side and advocate for your rights.
