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Mistakes to Avoid When Filing a Wildfire Insurance Claim

Mistakes to Avoid When Filing a Wildfire Insurance Claim

Mistakes to Avoid When Filing a Wildfire Insurance Claim

Mistakes to Avoid When Filing a Wildfire Insurance Claim

Wildfire season in California took a deadly turn in January 2025. As the Palisades and Eaton fires devastated Los Angeles, around 17,000 structures were destroyed, and 28 people died. These fires were still burning when the Hughes fire erupted, prompting more panic and evacuations. 

These wildfires are going to intensify every year. This means more homeowners and businesses will struggle with significant losses. 

If your property has been damaged or destroyed by the 2025 fires, there are ways you can recoup some of your losses. You may know that you can file an insurance claim after a wildfire, but it is important to approach the process correctly. 

If you make critical mistakes, your claim may be delayed or denied. The following are the most common mistakes to avoid when filing your claim.

Not Documenting the Damage Immediately


Documenting all the damage to your property and assets as soon as possible is crucial. At the same time, you can only do this when it is safe to return to what is left of your home. 

The California authorities will notify everyone affected by wildfires when it is safe to return to individual neighborhoods. When it is your turn, don’t delay getting all the evidence you need for your claim. 

This means:

  • Take time-stamped photos and videos of all the damaged areas in your house. If nothing is left of your home, take photos of the site.

  • Create a detailed inventory of all the items lost or damaged in the fire. Your inventory should include the purchase date of the items and their value. An inventory is sometimes called a proof of loss document. This document must be complete and accurate to avoid delays or denials.
     
  • If high-value items were lost in the fire, try to find digital receipts or proof of purchase.

Thorough documentation is the most important part of your claim. Without it, you cannot prove your losses. This also means your insurance company cannot process a claim for you. 

Misinterpreting Your Policy Coverage


Never assume that your insurance policy covers everything you think it does. Insurance policies are complex, and most policyholders are unaware of everything it excludes. Your policy may also have very specific limits regarding claiming for rebuilding and temporary living expenses. 

After you document your losses, go through your insurance policy. Read through all the coverage limits, exclusions, and deductible information. 

You should also check whether your policy includes ALE (Additional Living Expenses) Coverage. If it does, you may have additional funds to cover temporary housing while you fix or rebuild your house. 

Do not try to decipher the policy’s language on your own. Instead, speak to a reputable lawyer and ask them to explain your policy coverage and limits. 

Filing Your Claim Late

There will inevitably be a backlog of claims, considering how many people were affected by the fires. It won’t help your claim if you file late. If you are not prompt with your claim, you will wait even longer for an answer. 

Moreover, your insurance company will likely have a deadline for accepting wildfire claims. Thus, if you delay filing your claim, it could affect your ability to recover compensation. 

The best way to do it is to notify your insurance company about the damage to your property as soon as possible. 

Make a note of all the communications you have with your insurer. Take down the date, time, and name of everyone you speak to. 

If the insurer requests more information or documentation, send this as soon as possible. This could potentially help speed up the process. 

Not Keeping Records of Expenses

Considering your claim will not be resolved overnight, you will have out-of-pocket expenses to cover. This may include temporary housing, meals, transport, and medical care. 

It is important to keep proof of all these expenses so you can claim back from your insurer. Keep all receipts and invoices related to expenses that stem directly from the wildfire damage. 

You can also keep a daily log of expenses incurred due to displacement or home repairs. Submit this evidence to your insurance company to claim additional living expenses. 

Not Securing Your Property

It is also crucial that you secure your property to prevent further damage. Again, you should only do this if it is safe to be on the premises. 

If you are allowed back, try to board up windows and cover holes in the roof (if the house was only partially damaged). 

You can also save the receipts for what you spend on the materials to make these temporary repairs. 

Let your insurer know that you have secured the property. This will likely count in your favor when you get a settlement offer. 

Furthermore, securing your property also makes it harder for looters to steal what is left of your possessions. Sadly, there have already been reports of looters pretending to be firefighters ransacking already badly damaged homes in Los Angeles. 

Accepting the First Offer

Your insurer will very likely have a lot of claims to deal with. To process them faster, the insurer will potentially offer lowball settlements. If you receive such an offer, do not accept it. 

Lowball offers generally do not cover all expenses. Sometimes, they do not even cover the most important expenses. 

If you get a low offer, provide the insurer with repair and rebuilding cost estimates. Compare these estimates with the offer so the insurer can see how much it falls short. 

Your lawyer can also negotiate with your insurer for a better settlement. 

Not Hiring a Lawyer

Hiring a lawyer should be one of the top points on your to-do list after a wildfire. A lawyer can help you assess damages and calculate the money you need to recover these damages. 

Your lawyer can help if an insurer has denied your claim or if there is a legal dispute. Wildfire lawyers specialize in natural disaster claims, so your lawyer will provide the guidance you need to secure a fair settlement. 

Approaching an insurance claim with the help of an experienced lawyer is also your best chance at moving on and rebuilding after a wildfire. 

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