Dealing with insurance after a wildfire: What you need to know

How does homeowners insurance work during a wildfire evacuation?

If a wildfire forces you to evacuate, your homeowners insurance will help cover temporary housing costs through loss of use or additional living expenses (ALE) coverage.

This benefit also applies if you’re unable to live in your home during repairs. Keep all receipts for lodging, food and related expenses to ensure proper reimbursement from your insurer. ALE is set at a percentage of your dwelling coverage, often 20% to 30%. It won't pay anything beyond that limit; furthermore, it only covers expenses above your usual expenses, and insurance companies set limits on what they consider reasonable. For example, the insurance company will pay for you to stay in a hotel, but not the most expensive one in town if a more affordable option meets your needs.

Homeowners insurance after a wildfire: What you need to know

Wildfires are covered by homeowners insurance, including damage to the home itself, other structures on your property and your personal belongings, up to the policy's limits. Homeowners insurance covers a variety of types of fire damage to your home, including:

Accidental fires
Wildfires or forest fires
Electrical fires
Fires from lightning strikes
Arson by a third party

Renters insurance and condo insurance also cover wildfire damage. Renters insurance provides coverage only for your personal property, with the landlord responsible for insuring the structure. Condo insurance covers damage to the inside of your unit as well as your personal property, with the HOA master policy covering the rest of the structure. Both renters and condo insurance include additional living expenses coverage.

Does auto insurance cover wildfire damage?

Yes, auto insurance covers wildfire damage to your car if you carry comprehensive on your policy. Also called “other than collision” coverage, it pays for damage to your vehicle caused by something other than a collision. It covers wildfire damage, such as fire, smoke, or debris falling from trees. It pays to repair or replace your car up to its actual cash value.

Comprehensive coverage is part of what's known as a full coverage policy, and has a deductible you'll pay when you file a claim. It's not required by law, but is required if you have a loan or lease.

How to file a wildfire damage claim: Steps to take immediately

File your wildfire claim as soon as possible. Homeowners insurance covers wildfire damage, and filing quickly matters because insurance companies receive a high volume of claims after a natural disaster; those who wait to file may face slower processing times.

Here’s a step-by-step guide to filing a wildfire claim:

Contact your insurer immediately: Call your insurance company’s claims number to start the process. An insurance professional will guide you through the following steps.
Work with the insurance adjuster: An adjuster will visit your home when it’s safe to assess the damage. Be prepared to provide a “proof of loss” form, along with documentation such as photos, receipts and serial numbers.
Obtain repair estimates: Get quotes from reputable contractors. Some insurers may recommend specific companies, but you can choose your own.
Stay on top of deadlines: Each step in the claims process has its own set of deadlines, which can vary by insurer and state. Make sure to meet all deadlines and provide the requested paperwork on time to avoid delays in your claim.

What to do if your wildfire claim is denied, delayed or disputed

If your wildfire claim is denied, you can file an appeal and request a review. You'll need to provide documentation showing that your claim was wrongfully denied. If you don't succeed on appeal, you can reach out to the insurance department in your state for assistance. A public adjuster or a lawyer can both help you fight a denied claim, but both can be costly options, so they should be the last resort. Delays and disputes can also be handled by the state insurance department.

Situation	What to do	Who to contact
Claim denied	Request written denial reason; review policy exclusions	Your insurer's claims department
Claim underpaid	Get independent repair estimates; request re-inspection	Public adjuster or state insurance department
Claim delayed	Ask for a written timeline; document all communications	State insurance commissioner
Dispute unresolved	File a complaint or consult a public adjuster	State department of insurance

After a wildfire, whether you are facing smoke damage or the total loss of your home, your insurance is there to help. To ensure that your claim is processed and resolved quickly and smoothly, collect all necessary documentation, stay on top of the process by communicating with your adjuster, and be prepared with a clear knowledge of your rights as a policyholder.

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