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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 unsure of their properties’ fate. Many homeowners remain uncertain whether they can rebuild or repair their homes, while others are still waiting to access their properties to assess the damage. Insurers are now facing an influx of claims, and navigating this process can be daunting for victims of such a large-scale disaster.
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 greatly improve your chances of receiving fair compensation for wildfire-related damages. 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 most 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 damages, filing an insurance claim is a critical step toward recovery. Here are the steps you need to take to file a wildfire insurance claim, from notifying your provider to hiring an attorney.
Call Your Insurance Provider Immediately
Notify your insurance provider as soon as possible to initiate the claims process. They’ll then assign an adjuster to assess the damage. Remember, most 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
Ensure you have 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 must 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 covered disasters, like wildfires. 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 ensures you can 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 protect your claim and ensure 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. Always work with a licensed professional. 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 after a severe disaster, increased demand leads to 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, they 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, to ensure they align with your needs and goals.
Do Not Assume You Have Inadequate Coverage
Unless you have any specific information regarding the costs associated with a specific building, please avoid 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 there are issues with your claim or you need help with the process, you can call the Department of Insurance Hotline at (800) 927-4357. It is also possible to file a complaint online. Consumer advocates can also provide insights about 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 invaluable 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 best to leave immediately 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 evacuating, take detailed photos or videos of both the interior and exterior of your home. Make sure you have a complete inventory of your belongings, including appliances, artwork, jewelry, furniture, and other valuables.
- Important Records And Documents — Keep important documents easily accessible in case you need to evacuate quickly. To be safe, you can also keep other copies of these documents in case of emergencies, such as wildfire. 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, power of attorney, etc.
- Stocks and bonds.
- Receipts Or Documented Proof Of Your Expenses — You can receive reimbursement for the expenses you incur during disasters like wildfires. It is best to save receipts to ensure that you have 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 strengthen your case and maximize your 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. If you prefer, you can also call them 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 process the 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 when you qualify for financial assistance.
Essential Resources For Wildfire Victims
There are a number of groups and organizations in the United States that provide victims of wildfires with financial aid and recovery support after 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 ensures that basic fire insurance is available 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 key resource for homeowners, renters, businesses, and private non-profits to recover after significant damages or economic losses.
These loans are available for the repair and replacement of damaged homes, machinery, and equipment, as well as 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
- Majority of private non-profit 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 cannot 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 provide essentials like 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 ensuring they didn’t face the devastation alone.
Salvation Army
The Salvation Army provides immediate and long-term support to victims of disasters across the United States. They work alongside other non-profit 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 assist families with housing, child care, transportation, and more.
Team Rubicon
Team Rubicon, an international non-governmental organization led by veterans and based in Los Angeles, provides critical disaster response support. To assist with recovery and response efforts following the January 2025 California wildfires, the group created an emergency operations center (EOC) in their 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 to affected areas as soon as possible.
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 businesses 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, ensuring evacuees could safely reach designated safe zones. Telecommunication service providers such as T-Mobile and AT&T also offer unlimited calls, texts, 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 ensures that victims have 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 exploit vulnerable homeowners during these challenging times. To safeguard yourself from fraud and scams, follow 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. Always research the company or individual making the offer. Check reviews, ratings, and references before engaging.
- Verify Credentials — There are plenty of ways to check 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 ensure you receive the compensation you deserve. Additionally,
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 allows you to file a property damage lawsuit within 3 years. For injuries caused by the wildfire, you have 2 years from the incident date to file a civil case against the responsible party. In this case, you can seek the help of wildfire injury attorneys.
How Much Can I Expect To Receive From My Insurance Company?
The amount you will 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 expect to receive the same amount as what it would 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 renter’s insurance policies, particularly in high-risk areas like California, may exclude wildfire damage from their coverage. Contact your insurance provider to review your policy details and clarify what is covered.
Need Help Filing An Insurance Claim? Contact Arash Law Today!
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 don’t have to face this difficult time alone.
At Arash Law, we understand the challenges of recovering after a wildfire. Our experienced wildfire lawyers are dedicated to helping residents and business owners understand their rights, negotiate with insurance companies, and fight for the compensation they deserve. As one of the biggest personal injury law firms in California, we’ve recovered over 500 million dollars in settlements and awards for victims throughout the state. Call us now at (888) 488-1391 or fill out our contact form. We provide free, no-obligation consultations.
Our firm also handles other types of personal injury cases. For instance, our car accident lawyers have helped countless auto accident victims recover the compensation they deserve. We also won substantial settlements for victims of dog bite incidents, truck collisions, pedestrian accidents, and more. No matter your situation, we are ready to stand by your side and fight for your rights.