Facing the aftermath of a wildfire is incredibly overwhelming, especially when it comes to dealing with your insurance company. I can share from firsthand experience with our loss from the Woolsey Fire, that understanding how to navigate the insurance claims process can help ensure that you receive the compensation you deserve for your losses. Below are some essential tips to guide you through this crucial process:
1. Start the Claims Process as Soon as Possible
Notify Your Insurance Company: As soon as you’re able to do so safely, contact your insurance provider to report the damage. Many insurers have a dedicated disaster hotline that can handle claims related to wildfires.
Keep Your Policy Details Handy: Before calling, make sure you have your insurance policy number and other relevant documents, like your home’s inventory list, ready for reference. If you don’t have these on hand, it’s still important to report the claim as soon as possible to start the process.
2. Document Everything
Take Photos and Videos: Capture as many photos and videos as possible of the damage to your home and property, even if the destruction seems minimal. It’s essential to show the full extent of the damage for your claim.
Make a List: Create a detailed list of all the damaged or destroyed items, including their value. Include receipts, invoices, or estimates if you have them.
Temporary Repairs: If you’re able to do so safely, make temporary repairs to prevent further damage (such as boarding up windows or covering a damaged roof). Document these repairs with photos to show the insurer that you’re working to mitigate losses.
3. Understand Your Coverage
Dwelling Coverage: This part of your policy helps rebuild or repair the structure of your home. Make sure you understand the limits of your coverage and if it’s adequate to rebuild your home, especially in a post-wildfire scenario where rebuilding costs might be higher than anticipated.
Personal Property Coverage: This covers your belongings inside the home, including furniture, electronics, clothing, and other personal items. Know what’s covered, and check if it includes any off-premises items like belongings stored elsewhere or in your vehicle.
Loss of Use (Additional Living Expenses): This coverage helps pay for temporary housing, meals, and other necessary expenses if you need to live elsewhere while your home is being repaired or rebuilt.
Debris Removal: Many policies cover debris removal after a wildfire, but it’s important to verify the specifics of your coverage.
4. Stay Organized with a Claim Checklist
Navigating the claims process can be complicated, so keeping a well-organized record of communications and documents is crucial:
Claim Number: Write down your claim number once it’s assigned, and keep it in a safe place. Always reference this number in correspondence with your insurance company.
Communication Log: Maintain a log of every phone call, email, and conversation you have with your insurer. Include the date, time, person you spoke with, and what was discussed. This will help you track progress and hold the insurer accountable.
Receipts and Estimates: Keep any receipts for temporary repairs, accommodations, or other expenses, as well as estimates for repair work. You may need to submit these for reimbursement or as part of your claim.
5. Know What to Expect with Your Insurance Adjuster
Inspection of the Property: Your insurance company will likely send an adjuster to inspect the damage. Be prepared for the adjuster to take photos and provide a detailed report. It’s important to walk them through the damage to make sure nothing is overlooked.
Request a Second Opinion: If you disagree with the adjuster’s assessment of your damages, consider hiring an independent adjuster or contractor to provide an estimate. You may need this to challenge a low settlement offer.
Be Proactive in Communication: Stay in close communication with your adjuster. Keep them updated if new damages or issues are found after the initial inspection.
6. Understand the Settlement Offer
Review Your Settlement Carefully: Once your insurance company makes an offer, review it thoroughly. Compare it with your policy and documentation of your losses. If something doesn’t seem right or if the settlement is less than expected, don’t hesitate to ask questions or negotiate.
Replacement Cost vs. Actual Cash Value: Be aware of the difference between replacement cost and actual cash value (ACV) policies. A replacement cost policy reimburses you for the cost to replace your property, whereas an ACV policy factors in depreciation. Understand which type of policy you have so you can evaluate your settlement offer appropriately.
Additional Coverage Options: If your damages exceed the limit of your policy, inquire about other coverage options. Some insurers may offer extended coverage for situations like this.
7. Appeal and Dispute Process
Know Your Rights: If you believe the insurance company has undervalued your claim or denied your coverage unfairly, you can appeal the decision. Your state’s department of insurance can offer guidance on how to file a complaint and what steps to take.
Seek Legal Help: If the situation becomes contentious or you feel your claim is being mishandled, you may need to consult with an attorney specializing in insurance claims and disaster recovery. They can help guide you through the appeals process and ensure your interests are protected.
8. Stay On Top of Timelines
Insurance Deadlines: Be aware of deadlines set by your insurance company for submitting claims, receipts, and documents. Delays could affect your ability to receive compensation. Many insurers have strict timelines for filing claims related to natural disasters.
Rebuilding Timelines: If you’re rebuilding, remember that it can take time to receive the full payout. Work with your contractor and insurance company to establish a timeline for repairs and keep everything documented.
9. Consider Hiring a Public Adjuster
When to Hire One: If you're feeling overwhelmed or if the claims process is more complex, you might want to consider hiring a public adjuster. Public adjusters are licensed professionals who can help you with your claim, ensuring it’s filed properly and advocating on your behalf. They charge a fee, usually a percentage of the claim, but they can often help you recover more money than you would on your own.
Choosing the Right Adjuster: Ensure the public adjuster you hire has experience with wildfire claims and is licensed in your state. You can check their credentials through your state’s department of insurance.
10. Be Patient and Stay Positive
The insurance claims process can take time, and it may feel frustrating, especially if you’re trying to rebuild your life after such a devastating loss. It’s important to remain patient and persistent. Stay organized, keep good records, and work with professionals when necessary to ensure your claim is handled fairly.
Navigating the insurance claims process after a wildfire can be complicated and emotionally taxing, but understanding your policy, documenting your losses, and staying organized can make the process smoother. Don’t hesitate to seek professional help if needed - whether it’s from a public adjuster, attorney, or contractor. We have reputable contacts for all of the above and the experience to properly guide you with every step. By staying proactive and informed, you can increase your chances of a successful claim and begin the journey to rebuilding your home and life.