What to do if your home is destroyed or damaged in a fire

As smoke began to clear in parts of Southern California on Friday, the toll of several large fires became more visible. As much as it is 10,000 houses and other structures have burned since Tuesday, leaving massive devastation spanning entire neighborhoods in the Los Angeles area.

If your home has been destroyed or damaged by wildfire, here’s what you need to know about the insurance claim process, your rights as a homeowner and how to prepare for what comes next.

What should I do if my home is destroyed or damaged?

Once you and your family are safe and the damage to your home can be assessed, you need to call your insurance company to begin the claims process. Since this process can take months, it is important to contact the company as soon as possible.

If your home has been completely destroyed and a state of emergency has been declared, your insurance company is required by law to issue a minimum payment in advance, even if an adjuster has not seen your property. This includes a third of the replacement value of your personal belongings and a minimum of four months rent for the local area.

Review your home or renters insurance policy carefully, including your limits. Start documenting and creating a paper trail to support your claims process. If you have pictures of your property and vehicles before the fire, you can use those to help fill out your home inventory if you haven’t sent one already.

After checking to see if your home is habitable, documenting the damage, and starting the insurance claim process, contact your mortgage lender or landlord about the next steps.

Knocked down? California residents can find resources and a help line submit a bushfire insurance claim here.

Does insurance cover fire damage?

Depending on your policy, where you live, and the coverage you paid for, your homeowners (or renters) insurance may or may not cover damage to your home or property caused by wildfire.

Typically, fire is a “covered peril” in most cases home owners insurance policies, unless your policy specifically states an exclusion for fires or if coverage has been dropped or denied.

In some areas prone to fires, home insurance policies come with a higher price or require a separate deductible for fire claims. If you live in a home considered high risk where you cannot get traditional home insurance, the FAIR Plan (Fair Access to Insurance Requirements). can provide basic fire insurance.

How do I file a fire damage claim?

It’s natural to feel down when a natural disaster changes your life. Here’s what homeowners can do after a partial or total loss due to wildfire.

Step 1: Call your home insurance company

When you have reached safety, start the claim process to receive an initial payment to cover your living expenses for several months. When planning for the long term, be sure to take your deductible into account.

Step 2: Inventory the damage

If you can, photograph and detail the damage to your home, vehicles and personal belongings. If you haven’t finished yet a home inventory for insurance purposes, work with a trusted friend or family member to itemize and list appliances, furniture, electronics, decor, and other equipment with brand name and estimated purchase price.

Step 3: Review your policy carefully

Check your home insurance or renter’s policy, its coverage limits and the benefits you are entitled to for the reimbursement of personal belongings and living expenses. Insurance companies are required to provide this information to you upon request.

A Typical Homeowners Insurance it includes coverage for rebuilding or replacing the structure of your home and detached structures such as garages, as well as coverage up to a certain limit for personal effects in the home. Most policies also offer liability protection and additional living expense (ALE) coverage.

Step 4: Keep your receipts

Pay close attention to your ALE limits to cover hotel bills or rent, restaurant meals and other expenses you may incur while your home is being repaired or rebuilt. If your home is destroyed and needs to be rebuilt, you may be looking at a minimum of a year or more of additional living expenses.

Step 5: Watch for fraud

During a major disaster, it can be easy to get bogged down in rumours scams. The insurance policy of your neighbor or company may be different, so work with your insurance company only, he says Janet Ruiza California-based representative for the non-profit Insurance Information Institute. Fraud is common. “Unlicensed contractors, unlicensed public regulators often prey on those who have suffered a loss,” Ruiz said.

Step 6: Document everything

Start a claims folder where you can keep notes, records and details about every interaction you have with your insurance company, mortgage company and others. The claims process can be lengthy, and you may be required to secure multiple bids and work directly with contractors.

Step 7: Don’t accept an unfair offer

Working with your claims adjuster is a negotiation process. If the first settlement offer does not fully account for the cost of repairs or reconstruction, you can issue a letter of request seeking more payments that are more in line with your coverage limits and the value of your home.

“Often homeowners are on the defensive or don’t ask enough questions of the claims adjuster. If you don’t have answers, ask for a supervisor,” Ruiz said.

Step 8: Secure professional help if needed

If you are not sure if you are being treated well by your home insurance company, many states provide resources to assist with the claims process. You can also seek mediation or have an attorney involved as a last resort to resolve a disputed claim.

What if my insurer dropped my coverage before the fire?

Most states require insurers to notify owners of a cancellation policy months before the end date. Ruiz said that if you are denied coverage, it is important to find a policy with another insurance company and that the California FAIR Plan takes all the houses insured.

California Insurance Commissioner Ricardo Lara issued a mandatory moratorium of one year on non-renewals and cancellations of insurance. Those in certain ZIP codes affected by the Southern California wildfires cannot cancel their homeowner’s policies for one year, regardless of whether they suffered a loss.

If the fire was part of a federally declared disaster, the Federal Emergency Management Agency (FEMA) provides support for insured and uninsured homeowners. California homeowners and others affected by the Los Angeles wildfires can apply for FEMA assistance here.

Do I have to pay my mortgage after the fire?

Even if your home is a total loss or deemed uninhabitable, you’re still on the hook for the remainder of your mortgage. Contact your lender immediately to see if you qualify for forbearance or a payment deferral while your application is processed.

Some lenders may be willing to defer payments for three months to a year pending an insurance payment. This is critical to protecting your credit score, as late or missing mortgage payments will otherwise be reported as delinquent and impact your credit rating.

How can I protect my home from future fires?

As fires have become more prevalent in every part of the country, many people are taking steps protect their homes. Some states, like Californiahave federal, state and local programs to assist property owners in fire risk mitigation by strengthening and hardening their property to defend against fires.

Home insurance companies may also offer incentives for taking certain measures, such as installing sprinklers, creating a defensible perimeter on your property and upgrading your home with fire-resistant materials.