Frequently asked questions about fire damage insurance claims
Recovering from a fire is overwhelming. There’s the shock, the loss, and then the task of figuring out your insurance claim. This FAQ is here to give you clear, straightforward answers about fire damage coverage, how the process works, and how a public adjuster can stand by your side to make sure you’re treated fairly.
Coverage and claims
Does my homeowner’s insurance cover wildfire damage?
Most standard homeowners’ policies include wildfire coverage, with protection for structural loss, personal property, smoke and soot cleanup, and even landscaping in many cases. However, coverage specifics and limits vary depending on your policy and insurer, especially in high-risk zones. California’s FAIR Plan exists as a high-risk fallback but typically offers limited protection and may lack additional benefits, such as additional living expense (ALE) coverage.
What’s the difference between fire damage and smoke damage in an insurance claim?
Fire damage refers to the tangible destruction caused by flames (think structural loss or burned belongings). Smoke damage is loss related to soot, odor, and residue in HVAC systems, walls, carpets, or personal items that may require professional cleaning or replacement, even if the flames never reached them.
How do I know if I have enough coverage to rebuild after a wildfire?
Review your dwelling coverage amount and whether it’s based on replacement cost (covering full rebuild) or actual cash value (which factors in depreciation). Because wildfire damage-driven inflation may push rebuilding costs higher, it’s wise to compare your policy limits with current contractor estimates.
What is additional living expense (ALE) coverage, and how does it work after a fire?
ALE helps pay for added costs when your home is uninhabitable, like temporary rent, meals, utilities, furniture rental, storage, relocation, and transportation. It covers “actual, reasonable, necessary” additional expenses to maintain your usual living standard.
Where do I live after a wildfire, and who pays for it?
If your home is uninhabitable due to wildfire or related hazards — even without direct damage — ALE coverage applies. The insurer pays for reasonable temporary housing and related costs, as defined by your policy limits.
Are there any extensions available for ALE coverage if my rebuilding is delayed due to circumstances outside my control, such as permit or contractor shortages?
Yes. In California, ALE coverage covers at least 24 months after a declared catastrophe, plus a 12‑month extension if delays are out of your control, and even additional six‑month extensions for good cause. But — your policy’s dollar limit still applies.
Is my insurer required to issue advance payments for living expenses or can they insist on reimbursement only?
In California, when a state of emergency is declared and you suffer a total loss, insurers must issue an advance payment of no less than four months of additional living expenses upon request. In other cases, ALE may be reimbursed based on submitted receipts.
Are furniture rentals, new clothes, food, etc., paid for under my ALE expenses?
Yes, as long as they are reasonable and necessary “extra” living costs beyond your normal expenses. ALE can cover furniture rentals, meals, clothes, transportation, storage, utility setup at a temporary location, and phone expenses.
Am I allowed to combine dwelling and other structures coverage to meet reconstruction costs after a wildfire-related loss?
In most standard policies, dwelling coverage and other structures coverage (such as sheds or garages) are separate and cannot be combined to rebuild the primary dwelling unless your policy includes a special “blanket coverage” endorsement.
Is my insurance payout affected if I choose not to rebuild at the original location (no land value deductions)?
You may still be eligible for full replacement cost benefits, including building code upgrades or extended replacement cost, regardless of where you rebuild, if these provisions are in your policy. Land value typically isn’t deducted in such cases.
Can I use my insurance payout to buy or rebuild a home in a new location, and what limitations apply to this decision?
California law allows you to use replacement cost benefits to rebuild at a different location after a total loss in a declared disaster, but your policy language controls how and when this applies.
How are building code upgrades handled if current laws require more expensive construction after a fire?
If your policy includes building code upgrade or extended replacement cost coverages, it should cover the increased cost of bringing your structure up to current code. Otherwise, you may have to pay the difference out of pocket. Confirm with your insurer.
What happens if my insurance payout is not enough to cover rebuilding costs due to increased construction prices after a major wildfire?
That reflects underinsurance, a common problem. You may need supplemental funds, FEMA assistance, or legal remedies. It’s best to assess rebuild costs early and consider increasing your policy limits or adding extended replacement cost coverage.
Will my insurance cover the cost of debris removal, and how does participation in county-run debris removal programs affect my claim?
Most homeowners’ policies cover debris removal. If a county clean‑up program removes it, your insurer may reduce your claim correspondingly, but you remain entitled to that expense. Confirm specifics with your insurer.
Does my policy cover testing and remediation for toxins or smoke damage after a wildfire?
Yes, if the home is uninhabitable due to toxins, ash, smoke contamination, or other hazards, ALE applies. Insurers are required to investigate and may either extend ALE or address threats directly (e.g., provide a generator or filtration) if that resolves habitability issues.
Do I need to keep damaged items for the insurance adjuster?
Yes, do not discard damaged items. Document everything photographically, inventory your property, and retain damaged goods. Insurers typically require proof before approving claims.
How do I file an insurance claim for wildfire damages, and what documentation will I need?
- Notify your insurer or agent as soon as possible to begin the claims process
- Gather and submit necessary forms, such as a claim form and a proof‑of‑loss statement detailing damage and approximate values
- Document everything: when it’s safe, take photos and video of damage to structures and belongings, create a detailed inventory list, and retain receipts or proof of purchase for replacements or repairs
- Keep a record of all interactions with your insurance company, including names, dates, and content of communications
What should I do if my insurance claim is delayed, denied, or underpaid?
- Contact a licensed public adjuster for help.
- Appeal the decision. That includes submitting additional documentation and persistently following up.
- If the insurer still refuses a fair settlement, explore legal remedies, especially given recent rulings that expand coverage for smoke, ash, or soot contamination.
What should I do immediately after my home is damaged or destroyed by a wildfire like the Eaton or Palisades fires?
- Once it’s safe, document the scene through photos, video, and written notes. Inventory items and retain any receipts or evidence of contents
- Contact your insurer promptly to open a claim
- Keep detailed records of all correspondence and insurers’ instructions.
How do recent legal actions and lawsuits related to the Los Angeles wildfires affect insurance claims or policyholder rights?
A judge ruled that the FAIR Plan’s “sight and smell” threshold for smoke damage is illegal. Policyholders are now entitled to full coverage for fire‑related losses, including non‑visible smoke contamination. The California Department of Insurance is pursuing legal action against FAIR Plan for mishandling smoke damage claims, potentially opening broader relief for affected homeowners. The regulator is also investigating State Farm for delays and denials of wildfire and smoke damage claims, potentially strengthening policyholder rights. Lawsuits allege insurers colluded to drop coverage in high‑risk fire areas and funnel homeowners into the FAIR Plan; this could influence future regulations and accountability.
Are there deadlines or time limits for filing wildfire-related insurance claims in Los Angeles?
Policies may require you to file a notice of claim or proof of loss within 60 days, so acting quickly is advisable. Legal deadlines under California law typically allow two to three years from the date of the fire for property damage claims, longer if a state of emergency was declared. Note that policy language may impose shorter deadlines, so review your policy carefully and consult legal advice if unsure.
Insurance companies and regulations
Can my insurance company cancel or non-renew my policy after a wildfire?
California law prohibits insurers from canceling or refusing to renew residential property insurance in designated wildfire areas for one year following the governor’s declaration of a state of emergency. That protection applies even if you didn’t suffer direct damage.
What insurance protections apply if I received a nonrenewal or cancellation notice before or during the wildfire state of emergency?
If your insurer issued a cancellation or nonrenewal notice within 90 days before the wildfire emergency, those notices are paused for at least six months. Insurers must also offer reinstatement or renewal even if your home was affected.
How does the one-year moratorium on cancellations and non-renewals actually protect me, and does it apply if I didn’t suffer a direct loss?
The moratorium gives homeowners in affected ZIP codes a full year of protection from losing coverage, regardless of direct loss. It applies automatically to residential policies in designated areas for one year following the emergency declaration.
What action should I take if my insurer is not complying with the moratorium or other emergency regulations?
If your company proceeds with cancellation or nonrenewal in violation of the moratorium, you should contact the California Department of Insurance and request assistance.
How do recent regulatory responses and orders from the California Department of Insurance affect my rights as a wildfire victim?
The California insurance commissioner has expanded the moratorium to cover more wildfire events and warned insurers to rescind improper cancellations. The commissioner has also taken legal action to enforce smoke damage coverage and required insurers to bring policy language into compliance with state law.
What is the status of current or proposed state legislation that could change the insurance claims process or rates after major wildfires?
Aside from moratorium enforcement, there have been no major new laws passed recently. However, regulatory scrutiny and court rulings, especially around coverage definitions, are shaping trends in the insurance environment.
Are insurance companies required to increase coverage options or availability in wildfire-prone areas due to new or pending regulations?
No rules currently mandate insurance companies to expand coverage in wildfire areas. Many insurers continue limiting new policies, which has pushed more homeowners toward the FAIR Plan.
How can I find homeowners’ insurance when companies are limiting or stopping new policies in high wildfire risk areas?
If private insurers decline your coverage, the FAIR Plan serves as a last‑resort option. You can also inquire with the California Department of Insurance for other available alternatives.
What is the California FAIR Plan, and how does it help if I can’t get traditional homeowners’ insurance after a wildfire?
The FAIR Plan is California’s insurer of last resort, offering basic fire and hazard protection to property owners unable to secure private insurance. It tends to be more expensive and offers narrower coverage.
With the recent legal ruling, how does FAIR Plan coverage for smoke damage work, and has it changed for 2025?
A court ruled in mid‑2025 that FAIR Plan’s “sight and smell” requirement for smoke damage is unlawful, and the insurer has since removed that test. Now, claims for nonvisible or lab‑detected smoke damage are valid, and regulators are investigating to ensure compliant payouts.
Am I subject to special charges or assessments (such as those imposed under the FAIR Plan) due to wildfire losses in my area?
Possibly. The FAIR Plan has limited funds and may need to collect emergency assessments from private insurers, costs that could eventually be passed on to homeowners statewide.
Will I face premium increases or surcharges on my future policies as a result of the wildfire crisis?
Yes. Insurers are increasingly raising premiums, tightening underwriting, and passing on costs through rate changes, especially in high‑risk areas.
If my insurance company uses catastrophic modeling or reinsurance costs to set rates, how does this impact my coverage or premium in high-risk areas?
When insurers factor in catastrophe risk and rising reinsurance prices, premiums in wildfire-prone regions tend to climb. Some of these costs may flow through from FAIR Plan-related assessments or regulatory changes.
Adjusters and support
How do public adjusters help with wildfire claims?
Public adjusters are licensed professionals you hire to act on your behalf during the claims process. They understand the fine details of insurance policies, meticulously document losses, estimate repair costs, and negotiate with insurers to help you receive a fair settlement. Their independence and expertise can be especially valuable when the process feels overwhelming or your insurer’s response seems insufficient.
When should I call a public adjuster after a fire?
If your claim involves extensive fire, smoke, or water damage (or if you feel overwhelmed by paperwork or believe your insurer is underpaying or delaying), you might consider calling a public adjuster. If progress stalls or the claim becomes complex, bringing in a public adjuster could make a significant difference.
How do different types of insurance adjusters work, and when is a public adjuster the right choice?
There are three primary types of adjusters. Company adjusters are employees of your insurance company and handle claims directly for them. Independent adjusters are not employees but are hired on contract by the insurer to do the same job, so they still represent the insurer’s interests. Public adjusters are hired by you and work solely on your behalf. A public adjuster may be the right choice if you want an advocate who can provide a detailed damage assessment and negotiate directly with the insurer, especially for complex wildfire-related claims.
Will insurers be required to process claims faster or use out-of-state adjusters during major wildfire catastrophes?
During declared emergencies, the California insurance commissioner can allow insurers to bring in out-of-state (nonlicensed) adjusters to help manage high claim volumes. However, these adjusters must be supervised by a California-licensed adjuster and trained in state laws and practices. This measure is intended to speed up claim handling but carries risks, such as potential delays or mishandled claims due to unfamiliarity with local regulations.
Special circumstances
What are my rights if my home is uninhabitable due to wildfire damage, but the structure itself is not physically destroyed?
If wildfire or related hazards like toxic ash or downed power lines render your home unsafe, your policy’s additional living expense (ALE) or loss of use coverage may apply, even if the home itself isn’t structurally damaged. That means you may be reimbursed for hotel bills, food, utilities, relocation, storage, and furniture rental until your residence is safe again. California law ensures policies offering ALE cannot limit your right to recovery; insurers may also offer to fix hazards themselves as an alternative.
What if my neighbor’s property caused or contributed to the fire?
Your own homeowner’s policy should cover damage to your property, such as smoke infiltration or soot cleanup, even when the fire originated on a neighboring property. If negligence is involved, your insurer may pursue the neighbor’s liability insurance to recoup costs, but you would still rely on your own coverage first.
What mitigation steps can I take to lower wildfire risk and qualify for insurance coverage or discounts?
California insurers must offer discounts to homeowners who take wildfire-hardening measures under the state’s “Safer from Wildfires” program, steps like installing a Class-A fire-rated roof, creating ember-resistant zones, or using noncombustible exterior materials. The FAIR Plan also offers discounts for mitigation, and some insurers offer modest reductions based on verified safety improvements.
If I’m a renter, what wildfire-related losses does my insurance cover, and what should I do if my rental unit is destroyed?
Renters’ insurance generally covers your personal belongings from fire, smoke, and related damage, as long as you itemize what was lost and provide proof such as photos or receipts. It often includes loss of use coverage, which pays for temporary housing costs if your rental becomes uninhabitable. Make a detailed inventory, document damages, and file a claim promptly.
If I rent my home to others, how do I get compensated for rent I lose while the house is uninhabitable?
Landlord insurance typically offers loss-of-rental-income or fair rental value coverage to compensate for rent you can’t collect during reconstruction. Be sure your policy explicitly includes rental income or loss-of-use provisions.
For Southern California homeowners
How do I file a claim for damage from the Eaton Canyon or Palisades wildfires?
You should reach out to your insurance company or agent as soon as possible to start the claims process. Document all damage thoroughly with photos and videos before any cleanup begins. Take inventory of lost or damaged items with descriptions and values. For guidance specific to these fires, you can refer to United Policyholders’ “Roadmap to Recovery” for Palisades and Eaton survivors.
Does the LA County debris removal program affect my insurance claim?
If you join the county-sponsored debris removal program, you’ll sign a Right of Entry form that includes your insurance information. The county will bill your insurer for debris removal costs covered by your policy. If the program costs less than your debris-removal coverage, your insurer must release the remaining funds to you. If the program costs more than your coverage, the county covers the difference. You are not billed for the excess.
What building permits or code requirements should I expect when rebuilding in Los Angeles County after a fire?
Rebuilding triggers standard permitting and code enforcement, but LA County has taken steps to speed recovery. The permitting process may involve relaxed environmental reviews or pre-approved home designs, similar to what was done after the Tubbs Fire.
How does the one-year moratorium on cancellations apply in Los Angeles County?
The moratorium applies in ZIP codes affected by the Eaton or Palisades fires. That means insurers cannot cancel or decline renewal of your policy for one year after the state of emergency declaration, even if your home wasn’t directly damaged.
Can I qualify for insurance discounts based on fire mitigation steps specific to Southern California?
Yes. California insurers must offer discounts for wildfire-hardening actions under the “Safer from Wildfires” program, such as installing fire-rated roofs or ember-resistant zones. These apply across the state, including Southern California.
What should I do if I got a nonrenewal notice before the Palisades fire started?
If you received a cancellation or nonrenewal notice within 90 days before the wildfire state of emergency, the California Department of Insurance’s order pauses that notice for at least six months. During that time, your insurer cannot drop your coverage, and they must renew your policy if you meet all other policy requirements. The exact pause period can vary by emergency order, so it’s important to check the commissioner’s current directives for your ZIP code.
What local laws or emergency orders affect rebuilding after a wildfire in LA County?
LA County is adopting measures to speed recovery. These include suspending some environmental reviews, offering expedited permitting through new centers, and using templates based on wildfire recovery models from Northern California.
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