Wildfire insurance claims

How to file a wildfire insurance claim

To file a claim for wildfire damage to your home, contact your insurance company as soon as possible. Provide a description of the damage, as well as photo and video documentation. An adjuster will review the initial claim, visit your home and determine applicable coverage; from there, you'll need to get repair quotes and work with the adjuster on repairs.

Make the call to the claims number right away. An insurance professional will guide you through the process. You'll need to provide details of the loss and may also be asked for photos.
An insurance adjuster will visit your home when it’s safe to do so. The adjuster will assess the damage and ask for “proof of loss.” This is a standard form you'll fill out and return along with backup documents you have collected, such as pictures, receipts and serial or model numbers of damaged property.
Get repair quotes. Find a reputable contractor to give you estimates for the work. Sometimes the insurance company has a list of approved companies they work with, other times you can choose one yourself.
Meet all deadlines. Work with the adjuster and provide all the paperwork they ask for in a timely manner. There will be a series of deadlines each step of the way and you want to be on top of it. The time limits can vary carrier to carrier and state to state.

Immediate actions after wildfire damage

Immediately after a wildfire, find out if it's safe to return to your home before you do anything else. Once the authorities have cleared you to return, assess the damage and take photos. Then, contact your insurance company to file a claim.

“Document the damage by taking videos and photos to provide to the insurance company. Then call your insurance agent and ask for help in filing a claim with the insurance company. Next, call a remediation company or contractor so they can get to work to repair and prevent damage,” says Matt Banaszynski, CEO of the Independent Insurance Agents of Wisconsin.

If there is water damage from the fire department’s efforts to control the fire, you'll want to deal with that as well.

“Mold is a major concern for any water damage incident,” Banaszynski says.

If you have made any initial repairs yourself, keep receipts for reimbursement. Don't do any more repairs without the help of licensed contractors. Gordon Adams, a former Risk Management Society (RIMS) board member and long-time California insurance professional, recommends against any DIY repairs, as they must meet building codes and ordinances. He cautions that if repairs are not done right or cause more damage, it only delays the claims process.

“Unless the claimant is an experienced tradesman, construction manager, builder, general handyman or in some other manner experienced with hands-on residential construction, I do not personally recommend that a claimant undertake the repair or replacement of covered property,” he says.

If you’re unable to live in your home because of severe damage or have been evacuated by authorities, your homeowners policy covers temporary housing expenses. Check with your carrier ahead of time to see if they have a list of covered hotels, temporary housing and any additional expenses. Keep receipts for your hotel stay, meals and other related expenses.

Filing a claim

Once you’re ready to file a claim, gather all your pictures, videos, and receipts and submit them to the insurance company immediately. “As soon as possible once you’re sure that…damages are significant enough that they will exceed your deductible,” advises Marc Ragin, Associate Professor of Insurance and Risk Management at the University of Georgia.

The more documentation you can provide, the smoother the claims process will be.

“There’s no such thing as “too much” documentation in these situations,” he says.

Damage to your home’s structure is covered by the dwelling coverage section of your policy. Damage to fences, sheds and detached garages is handled by the other structures portion of your insurance. Damage to the belongings inside your house, like furniture, artwork, etc. is covered under the personal property section of your home insurance.

Repairing your property

Repairs after a wildfire proceed in stages, starting with insurance company approval and an initial payment for the actual cash value (depreciated value) of damaged structures, then moving to finding a contractor and paying a deposit to begin work. The actual repairs may take months, especially if many structures in the area were damaged. A standard home insurance policy has replacement cost coverage for the structure, and the insurance company will issue a final check for the remaining balance of the actual replacement cost after the work is completed and the total cost is known.

INSURANCE TERM TO KNOW: Recoverable depreciation

Recoverable depreciation is the insurance industry term for the difference between actual cash value and replacement cost. The initial check is for the depreciated value, and the final check allows you to recover that amount, bringing the total to the repair's replacement cost. If the replacement cost of your roof is $20,000 and its actual cash value is $12,000, the recoverable depreciation is $8,000.

Steps to getting your home repaired:

Check with your insurance company before contacting contractors. While you can generally choose your own contractor, most insurance companies have a list of preferred providers who will guarantee their work.
Find a reputable contractor that is licensed and bonded. Choose a contractor that has all the proper licenses and insurance and comes highly recommended by friends and family.
Get repair quotes and send them to your insurance company. Save all quotes, estimates and receipts. You can also submit any repair work receipts you did on your own.
You’ll get a check to pay deposits to the contractors and start the work. Once the work is finished, inspected, and up to code, you’ll get another check to pay off the repair bill.

Homeowners insurance and wildfire evacuation

If you must evacuate, your homeowners insurance provides some coverage for temporary housing. This is called loss of use coverage or additional living expenses (ALE). This also covers you when you can’t live at home during repairs.

“Generally if such a need arises due to a covered event the insurance carrier will provide guidance on places to stay or a daily benefit amount available for housing, meals allowances, personal expense allowances, transportation and similar needs," Adams says. So always check with your carrier ahead of time to see what’s an allowable expense and what isn’t.

ALE coverage has limits, usually 20% to 30% of your dwelling coverage, as well as a time limit. Coverage ends when either the dollar amount or the time limit is met, whichever comes first. You will be responsible for any expenses beyond your coverage limits.

“Living expense (extra expense) coverage only lasts for so long, and any delays associated with repairs could cause the living expense benefit to run out prior to the residence being repaired enough for habitation. Should this happen the claimant would then be on the hook for any non-covered living expenses. This could, of course, be very expensive,” Adams says.

Keep all receipts to be reimbursed by the insurance company.

How long does a wildfire insurance claim take?

Wildfire insurance claims may have different timelines depending on where you live and the extent of the damage. Most states require insurers to acknowledge claims within 10 to 15 days, and a decision within 30 to 45 days, although some states are less specific about timelines. Timelines can extend significantly after a major wildfire due to the large claim volume.

Most insurance companies do their best to get checks out for temporary living expenses sooner than later. For homes that require extensive repairs, you may be looking at several checks over a period of months as the contractors do their work. Ask your carrier if they can send an advance while you’re waiting for your claim to be paid, if there are delays.

Check with your carrier and state insurance board regarding any state laws governing claim payment timelines.

What to do if your wildfire claim is denied or disputed

If your wildfire claim is denied, or if you have a dispute with the insurance company regarding the settlement, reach out to your adjuster and request an explanation in writing. Ask about the claims appeal process, and initiate it right away. You may need to hire a public adjuster or an attorney for a large claim.

Situation	What to do	Who can help
Claim denied	Request written denial with specific reason; review policy exclusions	Insurer's claims department; state insurance commissioner
Claim underpaid	Get independent repair estimates; request re-inspection	Public adjuster; independent contractor
ALE claim disputed	Document all expenses with receipts; reference policy ALE limit	Insurer; state insurance department
Claim delayed beyond state deadline	File a complaint with state insurance commissioner	State department of insurance
Dispute unresolved	Consult an insurance claim attorney	Insurance attorney