The recent wildfires that began on January 7, 2025, have devastated large areas of Los Angeles, leaving entire communities destroyed and forcing hundreds of thousands of residents to evacuate. As of this writing, more than 9,000 structures have been lost to the flames. This article aims to guide homeowners and business owners through the insurance claims process, offering practical advice on what to expect when dealing with your insurer. Additionally, it will outline the state and federal responses, including available resources for assistance during this challenging time.

Greene & White LLP can help policyholders navigate the entire process outlined below. If you would like assistance with your claim, repair, or relocation, call (310) 406-5220 or (310) 920-341, or email us at [email protected].

Immediate Steps

1. Get to safety — property can be replaced, lives cannot. Follow local evacuation orders; don’t be a hero.
2. Check on friends and family, especially those who are elderly, disabled, or may otherwise have trouble evacuating.
3. For a list of free or reduced-price resources available to wildfire victims, click here.

Understand Your Coverage

Before filing an insurance claim, it’s important to understand what types of coverage you have and the applicable limits of those policies. If you have a copy of your policy, this is a good time to review it. If you don’t have a copy, you might have a Declarations Page — the cover page of many renewal notices that briefly describes your policy. If you don’t have either one, you can log into your profile on your insurance company’s website or app or call your agent to request a copy.

For Homeowners: If you own a home, your homeowners insurance policy likely covers damage from fire. However, whether it’s enough to fully compensate you depends on the limits of your coverage and your ability to document the loss. Most homeowners’ insurance policies provide these types of coverage:

Coverage A — Dwelling. This covers damage to the physical structure of your home. It is typically “replacement cost” coverage, meaning it pays for the cost to rebuild your home to its pre-loss condition but usually does not pay out the fair market value of the home.

Coverage B — Other Structures. This covers damage to other physical structures on your property that are not attached to your home, such as ADUs, detached garages, or other buildings that are not permanently affixed to the primary dwelling unit. This coverage is usually limited to a percentage of your Coverage A limit. Note: California FAIR Plan policies typically do not cover damage to other structures.

Coverage C — Personal Property. This covers damage to your belongings, including clothing, furniture, electronics, and valuables. For particularly high value items like fine jewelry or art collections, some policies may require you to purchase separate coverage.

Coverage D — Loss of Use. This covers your additional living if your home becomes uninhabitable, including temporary housing, meals, and other expenses you would not have incurred but for the loss.

For Renters: If you are a renter and have purchased renter’s insurance, your policy typically covers your personal property and additional living expenses if they were damaged in a fire. It likely will not cover the value of the structure itself, as that coverage should be maintained by the property owner.

Coverage A — Personal Property. Like a homeowners policy, this covers damage to a damage to your belongings, including clothing, furniture, electronics, and valuables. For particularly high value items like fine jewelry or art collections, some renter’s policies may require you to purchase separate coverage.

Coverage C — Loss of Use. This covers your additional living expenses if your rental unit becomes uninhabitable, including temporary housing, meals, and other expenses you would not have incurred but for the loss.

For Landlords: If you are a landlord, your landlord policy likely covers damage from fire. Your coverages will typically resemble those of homeowners insurance, with an additional coverage for lost rental income.

Coverage A — Dwelling. This covers damage to the physical structure of the building but specifically applies to the portions of the building that you hold out for rent. It does not cover.

Coverage B — Other Structures. This covers damage to other physical structures on the property that are not permanently affixed to the primary rental units, such as garages or storage sheds.

Coverage C — Landlord Personal Property. This covers damage to the landlord’s personal property (and possibly business property), such as appliances, supplies, tools, and fixtures belonging to the landlord. It does not cover the renter’s property, which must be separately covered by renter’s insurance.

Coverage D — Loss of Rental Income. This covers lost rental income should the rental unit(s) become uninhabitable due to a covered peril. It may also cover additional living expenses for tenants who are forced to relocate at the landlord’s expense.

For Business Owners: Business owners may have separate policies that cover their business property and business income.

Business Property Coverage. This covers damage to the physical assets of the business, such as buildings (if you own them), equipment, merchandise, inventory, fixtures, and inventory.

Business Interruption Insurance. This covers lost income due to a covered peril. It often covers lost revenue and fixed operating expenses.

 Preparing for an Insurance Claim

Filing an insurance claim after a fire can feel like an additional burden during an already stressful time. However, being organized and prepared can expedite the process and help you secure a fair settlement. Here are a few steps you may consider taking:

Document the Damage. Begin documenting the damage immediately. It is important to build a comprehensive record of the damage to justify your claim. For the structure itself, collect any photos of the home before it was destroyed. This may mean reaching out to your realtor, looking through old photos of events or re-models at the property, and searching your address on real estate websites like Zillow or Redfin. For your personal property, try to prepare a thorough list of your belongings. This can be difficult and time consuming but will be invaluable in the long run. To do this, look for old photos inside the home and collect receipts, including those in your email. Pay particular attention to high value items like art, jewelry, and watches.

Avoid Making Immediate Repairs: Don’t begin repairs unless they are necessary to prevent further damage (like covering a broken window to keep out the elements). Insurance companies often require an inspection of the damage before repairs begin, and making repairs before the insurer’s assessment could affect your claim.

Notify Your Insurance Company Promptly: Contact your insurance provider as soon as possible. Most policies require prompt notification of a claim, and delaying the process could cause complications. Keep in mind that, after a large fire, your insurance company may be inundated with claims, so getting in line early may be helpful. Be prepared to provide your policy number, a detailed description of the damage, and any other relevant information. However, be careful when estimating your losses. If you don’t have a good estimate, it may be better to wait until an expert can help you.

Finally, during every interaction with your insurance company, keep detailed notes of who you spoke with and what they said. Should any disputes arise, these could become very helpful.

What to Expect from Your Insurance Company

After you’ve filed your claim, your insurance company will begin the claims process. Here’s what to expect as your claim is processed:

Claim Acknowledgment. Once you’ve reported the fire to your insurance company, you should receive acknowledgment that your claim has been received. This usually occurs within 24 to 48 hours. During this time, your insurer will likely provide you with a claim number and contact details for your claims adjuster. Keep this information handy.

Claims Adjuster Inspection. The next step is typically an inspection by a claims adjuster. The adjuster will assess the damage, review your documentation, and evaluate the extent of the loss. Be prepared for this process to take a few days to a week, depending on the severity of the fire and the workload of the adjuster.

Review of Coverage. Once the adjuster completes their assessment, your insurer will review your policy to determine if coverage applies. This will include looking at your dwelling coverage, personal property limits, loss of use (if you’re temporarily displaced), and liability, if applicable. If your carrier denies coverage, consider contacting an attorney to help you overturn that decision.

Initial Undisputed Estimate. After reviewing the damage and policy terms, the insurer will typically issue an initial undisputed estimate. The estimate may cover repairs, replacements, and lost income (in the case of business interruption insurance). However, keep in mind that the first offer is not likely the best.

Negotiations. Unless your carrier offers the full amount of coverage in advance — which is unlikely — you will need to defend your claim and negotiate its value. To support your negotiations, consider working with contractors and other vendors to prepare estimates. Keep in mind that any negotiations in price should consider the availability and delivery cost of materials, not just their retail value.

Settlement. After negotiations, your carrier may offer an amount to settle your claim. If you decide to settle, you will be relinquishing your rights to further recovery, so this is a decision to think carefully about.

Preparing to Rebuild

While the claim is ongoing, it may be wise to begin planning repairs or a rebuild. Most property owners will not be familiar with the steps to building a new home, which can be a complicated and time-consuming process. Below are a few considerations to keep in mind.

Cost. Whether you’re planning to rebuild your home exactly as it was or start from scratch, it is important to consider the cost. Even if you have enough insurance to rebuild your home entirely, it likely only covers the cost to rebuild to its pre-loss condition, so any additions, changes, or upgrades may be at your own expense. If you are underinsured, you may need to scale back the project or prepare to pay out-of-pocket.

Time & Loss of Use Coverage. For smaller losses, the time to make repairs rarely exceeds the Loss of Use coverage or time limitations. For large losses, like total loss from fire, this coverage may be exhausted quickly. Most policies provide at least a year of Loss of Use coverage, with additional time granted during a state of emergency. As you plan your rebuild, it is important to consider whether your policy will fully reimburse you for the time you spend in temporary housing.

Actual Cash Value vs. Replacement Cost Value. Depending on your policy, you may have coverage to replace your structure as it was (actual cash value or ACV), or to replace it using new materials (replacement cost value or RCV). If you have ACV coverage, your carrier will take a deduction for the age and condition of the materials, such as wood floors. If you have RCV coverage, your carrier may still depreciate the items based on their ACV, but you can recover the difference if you actually replace the items with new ones (called recoverable depreciation).

Vendors. Unless you’re in the construction business, building a new home from scratch can be daunting. It is important to work with the right vendors to ensure your project is completed in a timely, cost-effective manner.

1. Contractors. A good first step is to begin researching contractors. Reach out to your friends or others in your network to find someone you trust, who is licensed, bonded, and has the right experience. Consider reading reviews and having calls to interview them. A good contractor can help you with everything from debris cleanup through permits, building, and final move in.
2. Architects. You may consider hiring an architect to help design a home to your liking. As with contractors, take the time to find someone you trust.
3. Designers. Whether you want your home to follow a particular design philosophy, or you just need help envisioning your space, it may be helpful to work with a designer. Take a look at their portfolio to draw inspiration and see if you like their style.

 Disputes with Your Insurance Company

Unfortunately, disputes between policyholders and their insurance companies are common, as the insurers try to save money on claims. If you’re facing a denial of coverage, underpayment, or difficult time negotiating or communicating with your insurance company, consider hiring an attorney and/or filing a complaint with the California Department of Insurance.

 Policy Cancelation and Non-Renewal

Many policyholders are nervous that their insurance company will cancel their policy if they make a claim. While cancelation decisions are typically up to the insurance company, the State of California has stepped in to offer some protection.

California law prohibits property insurers from canceling policies within 1 year of a wildfire for properties located in or adjacent to the fire perimeter. See Cal. Ins. Code § 675.1(b)1). In addition, insurance companies are required to renew policies for at least 24 months for policyholders whose homes were totally destroyed by a declared disaster. See Cal. Ins. Code § 675.1(a)(3).

On January 9, 2025, Insurance Commissioner Ricardo Lara announced that multiple zip codes surrounding the Palisades and Eaton Fires would be included in the policy cancelation moratorium. Click here to learn more.

State and Federal Funding Available

For homeowners who do not have insurance, there will be some form of state and federal funding available. As of now, FEMA has committed to helping homeowners with the cost of rebuilds, but they will not likely cover the full cost. To apply, visit DisasterAssistance.gov.

Like an insurer, FEMA will likely conduct an inspection to determine if assistance is available. They may require the same sort of loss documentation that you would typically provide to an insurer during negotiations.

More information on state and federal funding will likely become available soon, so be sure to check back for updates.

How Greene & White LLP Can Help

Our firm represents policyholders throughout the entire claims, relocation, and rebuild process. Like a public adjuster, we can help you document your loss, estimate your repairs, and negotiate with the insurance company so you don’t have to. Unlike public adjusters, though, we can represent you during appraisal, examinations, and litigation, if necessary. If you’d like assistance, contact us at (310) 406-5220, (310) 920-3411, or email us at [email protected].

This article is for informational purposes only and is not intended as legal advice. No attorney-client relationship is created by contacting us; we do not represent you unless both you and Greene & White have signed and entered into a contract for legal services.