Wildfire Insurance Claims: Simple Questions, Simple Answers

Our prayers are with those who have suffered loss from the recent Southern California wildfires. Because we have long-represented a great many insurance policyholders in claims against insurance companies – including those that arose in the Thomas and Woolsey Fires – we have some initial thoughts on what you should do if you have had losses from this recent unprecedented disaster.
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Our first thought is this – you very likely do not now need legal representation.  If you have lost your home, you are almost certainly going to receive the total limits of your insurance policy.  You don’t need a lawyer to get that.  And you don’t need a public adjuster to get that either.  You will be paying money to get something you are already entitled to get.  So, unless you have a particular problem with a particular insurance company, please do not seek legal representation at this point.  It is premature.  Wait to see if a problem develops.  We help people solve problems.  While you face extraordinary challenges right now, an insurance problem is not one of them.

Are there things you should do now because of your loss?  Yes.  Many things and a great deal of resources will help you do those things. Here are three resources we recommend:

• The California Department of Insurance: https://www.insurance.ca.gov/‍
• United Policyholders: https://uphelp.org/disaster-recovery-help/2025cawildfires/‍
• The Beverly Hills Bar Association (Guide to Property Damage Claims Following a Natural Disaster): https://drive.google.com/file/d/1tRPBWUOBPmQRFRsMd_HETjt2Uu49SNQg/view
  

In the meantime, here are common questions asked us, and some common answers we give (recognizing, of course, that none of this should be taken for general purposes only and not to create any attorney-client relationship with you):

Need For Legal Representation

Q.   I’m concerned about doing the right thing in filing my insurance claim.  Do I need to retain you to do that?

No.  You don’t need legal representation to file your claim.  Do not sign up with anyone who says they will help you with your wildfire claim, unless you think you really need it.

Q.    Why not?

Because if you have lost your home, your insurance company will likely pay you all the limits on your policy.  You don’t need to pay someone to get that.

Q.    What about a public adjuster?  Can one help me with my claim, too?

No.  Same reason.  They are paid on a percentage basis of recovery.  You do not need to pay someone a percentage of your recovery if you are going to receive a full recovery anyhow.  A public adjuster can be valuable to you later, but generally but only if and when you are having a dispute with your insurance company about repair costs or valuation of property.

Filing a Claim

Q.    How do I file my claim?

If you have a broker, call your broker.  That’s why they were paid a portion of your premium.  If you don’t have a broker, call the company directly.  Check their website; it should have all the information you need to file a claim.  Be sure to file claims with all insurance companies you have regarding your property, even if you don’t think you have coverage.

Q.    What should I tell them?

1. You’ve lost your home (or your home is damaged or inaccessible)
2. You need an advance for living expenses and any direction regarding them
3. You need the name and contact information for the adjuster you’ll be dealing with
4. Give all your contact information, including a hard mailing address
5. Ask for a copy of your policy
6. Ask about next steps and timelines

Q.    Is there anything I need to do in communicating with them?

Yes.  Document everything.  Keep all emails.  Screenshot web communications that may not be saved.

Policy Benefits

Q.    I'm confused about my policy.  What should I do?

If you have a broker, call your broker.  If you don’t have a broker, call your adjuster and ask them.  Document the call.

Q.    What kind of living expenses can I expect to receive?

If you have "total loss", you are entitled to a minimum of 24 months.  Cal. Ins. Code §1060(b).  But your policy may have a maximum amount – either in terms of dollars or time period.  Be aware of those limits and make your expenses fit within it.

Q.    Should I keep track of my expenses?

Yes, every penny.  Scan in all receipts and credit card statements. Keep in a folder.  Your insurance company may demand proof of expenses after 4 months and a potential defendant you may elect to sue later on may expect that documentation, too.  

Q.    What about my personal property losses?  Can I get some of that now?

Yes.  Because this is a State of Emergency, in the case of “total loss,” you are entitled to no less than 30% of your dwelling limits (subject to a cap of $250,000).  You are entitled to that upfront; now.  See Cal. Ins. Code §10103.7.

Q.    Will I have to inventory all my personal property losses?

Not usually.  Some companies may require it.  But if so, you are allowed to group losses in broad categories.  Cal. Ins. Code §2061.  But it is better to itemize, if you can, to recoup losses against a potential defendant later.

Q.    What if my insurance company offers me, say, 75% of my personal property limits to avoid doing an inventory?

Don’t take it now.  Decide later.  It may or may not be a good deal.  You’d be leaving 25% on the table, potentially.

Q.    What if I’m staying with friends or relatives?

You may not get reimbursed for anything.  Prepare a simple “lease agreement” with your friends or family that can justify your right to reimbursement, especially for shared expenses like utilities and groceries.  Send that to your adjuster.

Q.   What if my house isn’t totally lost, but it’s uninhabitable?

You will need to argue why you can’t live there (no utilities, access, smoke damage).  Call the Insurance Commissioner for help if your adjuster disagrees.

Q.    Do I have to keep paying my mortgage?

Possibly.  Talk with your lender.  Ask for forbearance.  Your lender has an incentive to work with you, because it doesn’t want an empty lot.  It will also likely be a co-signer on whatever insurance proceeds you get for the rebuild of your home.

Q.    When should I seek legal help?

When you have reached impasse with your insurance company and you are not getting paid what you think you should be paid.  That will typically be some time from now.  If and when that happens, we stand ready to serve you.

David A. Shaneyfelt has been litigating complex civil matters in state and Federal courts for nearly four decades. He served in the Civil Division of the U.S. Department of Justice in Washington, D.C., and as a shareholder with the New York-based law firm of Anderson Kill. With this experience, he represents insurance policyholders in claims against insurance companies having recovered millions of dollars in benefits for individuals and corporate clients.