Insurance Steps to Take After Wildfire Damage

Wildfires in California have destroyed thousands of homes. Unfortunately, fires don’t have boundaries and can happen in any state. Filing an insurance claim promptly is vital to ensure you can rebuild quickly. And for Californians, filing their claims immediately could mean avoiding months of waiting for funds.

If you’re part of a natural disaster, you might be able to file two claims: one through your insurance and one through the Federal Emergency Management Agency (FEMA). But how do you file a claim, especially when surrounded by chaos?

Here’s what you need to know to navigate the process effectively and ensure your claim is handled smoothly.

Does Your Policy Cover Fires?

Good news! All standard homeowner’s and renter’s insurance policies cover fire. The coverage amount paid depends on the limits of your policy.

For instance, if your home is insured for $4 million and is a total loss, you will receive the full amount. If it’s a partial loss, then you’ll receive enough to make you whole again, up to the policy limits.

Keep in mind that insurance will only pay the limits of the policy. If it takes more than $4 million to rebuild your home, you must pay the difference out of your own pocket. The exception is if you have extended replacement cost coverage on the policy.

Besides damage from the fire, any damage from the act of extinguishing the fire, such as water damage, will be covered.

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The first thing you will want to do is immediately contact your insurance agent to start the claim process. If there are a lot of claimants, as there are in a natural disaster, you want to try to be at the front of the line. This will help facilitate and quickly settle your claim. Californians who know their home is a loss should contact their agent even if they haven’t returned to their property yet. This, too, will help speed up the claim resolution process.

Request a copy of your policy, and have your agent explain your coverage. Some coverages will be rebuilding or repairing your home, personal belongings, and additional living expenses (ALE). The FAIR Plan doesn’t cover ALE.

California law requires the insurer to send you one copy of your policy free of charge within 30 days of requesting it. Having your policy in hand will be helpful when dealing with a claims adjuster.

Inquire what you need to supply to speed up the claim process.

Next, if possible, secure the property to prevent further damage. Homeowner’s insurance won’t cover ensuring damage to your property if you have failed to protect it.

Working With Claims Adjusters

If possible, have pictures of your home. You may not have specific pictures, but family photos may have shots of your home and belongings in the background. These could be vital for Californians who have lost homes.

Question an adjuster if they claim something isn’t covered and ask them to point out the exclusion on your policy.

You’ll be asked numerous questions that appear off-topic. For example, a standard fire claim question is, “Are you having any financial problems?” Be patient; these are just boilerplate questions and may not have anything to do with your circumstances. This is especially true in a natural disaster.

Filing and settling a claim will be a long process, and you may have to speak to several people before your claim is settled. You’ll need to document all your conversations, starting with your agent. Create a dedicated “claim diary” and refer to it if there’s a conflict.

The ALE coverage pays your living expenses, transportation, pet boarding, furniture rental, and possibly other things. It’s important to manage your ALE carefully since you will need it throughout the rebuilding period.

It’s imperative you keep all your receipts to facilitate your claim. If you have been evacuated, save your receipts even if you don’t know your physical loss. You should be eligible for reimbursement from your insurance company.

FAIR Plan Insurance Limited Coverage

Fair Access to Insurance Requirements (FAIR) allows high-risk homeowners to buy homeowner’s insurance and is a last resort option. It is a state-run plan, and 34 states offer it.

Although it’s run by the state, it is not funded with tax dollars. Instead, it’s financially supported by private insurance companies.

When it comes to coverage, FAIR Plans are limited. For example, where a private insurance company offers replacement cost (RC) on a policy, FAIR Plans do not. It only pays actual cash value (ACV).

Other coverage can be purchased at an additional cost.

Currently, the California FAIR Plan faces increased exposure. The insurance market has been disrupted because many major insurers, such as State Farm and Allstate, paused writing new policies and non-renewed others.

If there are other needs, such as medical expenses, vehicle damage, funeral expenses, household items, or child care expenses, an additional $43,600 may be available.

These are grants and don’t need to be repaid unless your homeowner’s insurance provides coverage for them.

Recovering From a Major Fire Loss

A fire or any physical loss is devastating. First, ensure you and your family are safe, and then prepare to deal with insurance. If you have photos of your home and personal effects, make them available to the adjuster. And, finally, document every conversation you have.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.