15 Insurance Tips for Homeowners Filing Wildfire Claims

Wildfires are an ever-growing concern for homeowners, particularly in fire-prone areas. If your property has been damaged or destroyed, navigating the insurance claims process can be overwhelming. Preparation and a methodical approach can help make the process more manageable. Here are 15 insurance tips to help you file your wildfire claim effectively and ensure you receive the coverage you deserve.

1. Review Your Policy Before Filing

Start by carefully reviewing your insurance policy to understand what is covered, excluded, and limited. Look for specific terms related to wildfires, debris removal, and temporary living arrangements. Make note of your deductible, policy limits, and whether your policy includes replacement cost or actual cash value for damages.

2. Document the Damage Immediately

As soon as it is safe to return to your property, thoroughly document all damage. Take clear, high-resolution photos and videos of your home and surrounding property from multiple angles. Focus on structural damage, personal belongings, and landscaping. Don’t throw away damaged items until an adjuster has inspected them.

3. Notify Your Insurance Company Promptly

Contact your insurance provider as soon as possible to report the damage and begin the claims process. Be prepared to provide your policy number and a preliminary description of the damage. Prompt reporting ensures your claim will be processed in a timely manner and avoids potential denial for late filing.

4. Secure Your Property

Prevent further damage to your property by taking temporary measures, such as boarding up broken windows, placing tarps over damaged roofs, or fencing off unsafe areas. Insurers may require you to demonstrate efforts to mitigate additional losses, and they may reimburse you for these expenses if documented properly.

5. Keep Receipts for Emergency Expenses

If you have to evacuate or your home is uninhabitable, save receipts for temporary housing, meals, clothing, and other necessities. These costs are typically covered under Additional Living Expenses (ALE) coverage, but you must provide proof of expenditure.

6. Create an Inventory of Damaged or Lost Items

Prepare a detailed inventory of all damaged or destroyed items. Include descriptions, approximate purchase dates, original costs, and replacement costs. Group similar items together, such as furniture, electronics, or kitchenware. Using a pre-loss inventory, if available, can streamline this process.

7. Use Pre-Loss Documentation

Pre-loss documentation, such as photos, videos, receipts, warranties, and appraisals, can substantiate the value of your belongings. These records are particularly valuable for high-value items like jewelry, electronics, or artwork. If you don’t have such documentation, try to gather alternative proof, such as credit card statements or purchase records.

8. Understand "Replacement Cost" vs. "Actual Cash Value"

Clarify whether your policy reimburses based on replacement cost or actual cash value. Replacement cost covers the cost of buying a new equivalent item, while actual cash value accounts for depreciation. Knowing this distinction will help you manage your expectations and ensure accurate claim preparation.

9. Ask for Advance Payments if Needed

If you need immediate financial assistance for essentials like clothing or temporary lodging, ask your insurer for an advance on your claim. Many insurers offer this option to help homeowners address urgent needs while the full claim is processed.

10. Work with Adjusters Effectively

Schedule a property inspection with an insurance adjuster and be present during the visit. Walk through the damage with them and provide copies of your documentation. Keep a detailed record of all communications, including emails and phone calls, to avoid misunderstandings later.

11. Hire a Public Adjuster if Necessary

If you feel your insurer’s settlement offer is too low or the process is overly complicated, consider hiring a licensed public adjuster. These professionals work on your behalf to evaluate the damage and negotiate with your insurer for a fair payout. Be aware that they typically charge a percentage of your settlement.

12. Don’t Rush the Settlement

Take the time to thoroughly review your insurer’s settlement offer. Ensure all losses are accounted for, including hidden damage that may not be immediately apparent. Consult with professionals, such as contractors or public adjusters, to verify the adequacy of the settlement amount.

13. Be Aware of Deadlines

Insurance policies and state laws often include strict deadlines for filing claims, submitting documentation, or disputing settlements. Familiarize yourself with these timelines and comply to avoid jeopardizing your claim. Request extensions if necessary and document approval in writing.

14. Understand Debris Removal Coverage

Debris removal can be a significant expense after a wildfire. Review your policy to determine if this is covered and what limits apply. Some policies may include debris removal within the overall structure coverage limit, while others provide additional coverage specifically for this purpose.

15. Consult a Legal Expert if Needed

If you encounter significant challenges in the claims process, such as denied coverage or low settlement offers, seek advice from an attorney specializing in insurance claims. A legal expert can help you understand your rights, negotiate with your insurer, or even take legal action if necessary.

If you need additional help, don’t hesitate to reach out to me directly. I have my C.A.R. Disaster Preparedness and Knowledge (DPK) Certification: Crisis Knowledge Management as a Realtor & am here to support you and offer guidance and resources.