The wildfires in Los Angeles, including the Palisades, Eaton, Hurst, and Runyon Canyon fires, are fast-moving, destructive, and scary. As of the evening of January 8, 2025, they have caused extensive damage and led to the evacuation of more than 100,000 residents. The Palisades Fire has burned 18 square miles, the Eaton Fire 16.5 square miles, and the Hurst Fire 0.8 square miles. At 5:50 p.m. PT, a new blaze had broken out in Hollywood Hills near Runyon Canyon, and by 7:40 p.m. PT, the Runyon Canyon Fire had spread 10 acres. Additionally, nearly 400,000 power customers were left without electricity due to preventive power shutoffs.
We at Reed Smith are closely following the progression of the devastating and costly wildfires ravaging Southern California. Our thoughts and prayers are with the entire region, especially those under mandatory evacuation orders. We offer the below tips and recommendations in the hope that they will help homeowners navigate the insurance claim process more effectively.
Wildfire Evacuation Tips
Of utmost importance is everyone’s safety. All homeowners subject to an evacuation order should prioritize evacuating promptly and safely and finding temporary housing. Insurers sometimes help homeowners find a place of similar size.
If possible, homeowners should try and take pictures or videos of each room and the exterior of their homes prior to evacuating. This documentation will be invaluable if an insurance claim needs to be filed. It is also important to pack important documents, such as insurance policies and related correspondence, tax and loan documents, passports, birth certificates, plans/blueprints of the home, wills, trusts, and other related documents. These steps ensure that homeowners are prepared to file comprehensive insurance claims if their property is damaged.
Save Your Evacuation Expense Receipts
Save receipts for any expenses incurred during evacuation. Claimants may be able to claim reimbursement for Additional Living Expenses (ALE) incurred due to the loss of use of their home because of a mandatory evacuation order or damage that makes it uninhabitable. ALE typically includes extra food and housing costs, furniture rental, relocation and storage, and transportation expenses. All may be reimbursed, but insurers will always require receipts.
In his January 8, 2025 Press Release, California Insurance Commissioner Lara advised that he sponsored SB 872, which: “requires insurance companies pay at least two weeks of ALE benefits to evacuees and provide an advance payment for no less than four months of ALE without an itemized inventory form, among other consumer protections. This important consumer protection law removes barriers for disaster survivors to get critical insurance benefits and streamlines wildfire recovery processes for homeowners who suffer from a loss.”
First Steps After a Wildfire:
- Those affected should take care of themselves and their family’s immediate needs first.
- They should also notify their insurance companies about the damage as soon as possible.
- Policy provisions, including deductibles, vary, so those affected should review their policies to confirm coverage, limits, and any other limitations and documentation requirements.
- Be sure to provide insurers with all documentation collected, follow their instructions for filing a claim, and keep a record of all communication with your insurance company, including the names of representatives spoken with and the dates of all conversations. Keep your paperwork organized.
- A certified industrial hygienist can test the air quality to ensure it is safe to return. Starting the cleanup process early is crucial to prevent further damage, especially for those with health sensitivities. The process should include clean up of debris, soot and ash, and address any water damage caused by fire suppression efforts. Homeowners with health sensitivities such as asthma should alert their insurer and ensure that the cleanup process is thorough to avoid aggravating respiratory conditions.
Insurance Claim Tips for Fire Losses
If an insurance claim is submitted, an insurance adjuster will eventually come and inspect. If they make a settlement offer on the spot, get a second opinion. Do not rush into signing contracts. If a claimant is considering hiring a public adjuster, check the public adjuster’s license and make sure they are properly licensed and in good standing.
Get copies of all paperwork signed. Fire claims can be complex due to hidden damage and potential disputes over repairs. Claimants should ensure thorough inspections of their property, address matching issues for repairs, and insist on proper cleaning to mitigate health risks. Those affected should also document all damage, and get professional inspections to assess the extent of the damage. Contractors and structural engineers can evaluate the damage and estimate the cost of repairs. Understanding the nuances of mold and smoke damage coverage is also essential for a successful claim. Insurers may ask claimants to inventory damaged and destroyed property.
For tips and tools on how to properly inventory damage, check out uphelp.org.
Give the insurer a chance to do the right thing, but, if the insurer is acting unfairly, be prepared to push back or get help. Insurance companies, for example, cannot cancel or refuse to renew insurance policies for homes in affected areas. On January 9, 2025, Commissioner Lara announced that he is using “moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don’t face the added stress of finding new insurance during this horrific event.” His full press release can be found at insurance.ca.gov.
By following the outlined tips, homeowners can navigate the insurance claim process more effectively and ensure their homes are restored to a safe and livable condition.
Speak with Policyholder-Side Insurance Experts
Insurers do not profit from paying claims, and will likely assert whatever defense they believe will absolve or mitigate their coverage obligations. Those affected should have an advocate that is highly experienced in making sure they receive the full benefit of their policies. This is what the attorneys in Reed Smith’s Insurance Recovery Group do all day, every day. We would be pleased to speak with you about ways we can help navigate your insurance claims during this challenging time.
We at Reed Smith will continue to follow the progression of these devastating wildfires and all those affected will remain in our thoughts and prayers.