For those impacted by the Eaton Fire, navigating insurance claims, finding temporary housing, and figuring out how to get started with the rebuilding process can be daunting. As wildfire attorneys who have helped hundreds of people in similar circumstances, we understand what you are going through.
Using our experience helping others recover from previous wildfires, we wanted to provide Eaton Fire victims with an overview of what we feel is the most essential information at this early stage in the recovery and rebuilding process.
Quick Guide to Eaton Fire Claims
What to Know About Homeowner’s Insurance
Before we start, if you have homeowner’s insurance and have not done so already, open a claim with your insurance company as soon as possible. Insurance companies must respond to you within 15 days. If you have a total loss, let them know immediately (sending photos can help) so they understand the severity of your loss and can issue you any immediate payment requirement under your policy.
Insurance claims can be complicated depending on your coverage. That said, most policies share some basic features that can be paid out shortly after a disaster.
Coverage A (Dwelling)
This covers your main structure and anything attached to it, such as built-in garages, porches, and built-in appliances, for example. Coverage A is usually based on the actual cash value of what was lost. ACV is the fair market value at the time of loss, which factors in depreciation. Essentially this is the value of your home the day before the fire. Some policies may give replacement cost value (RCV), which covers the cost of rebuilding the insured structure. There will also be a policy limit that sets the maximum amount the insurance company will pay for that coverage, absent any additional riders or add-ons like allocations for additional money to cover code upgrades.
Coverage B (Other Structures)
This covers structures not attached to your main dwelling but affixed to the land—fences, standalone garages, pool houses, sheds on foundations, and more. Typically, Coverage B is a set percentage of Coverage A and can also be subject to ACV or RCV.
Tip: Be sure to pay special attention to fences and gates. Fire damage, especially high-heat exposure, can compromise the integrity of concrete, stone, or metal. Even if it appears fine at first, problems may manifest later, which can be frustrating during the claims process as it allows the insurance company to say the damage is not fire-related.
Coverage C (Personal Property)
This covers everything in your home that’s not nailed down, wherever it was located (whether in a shed or your kitchen). Under California law (CA Ins. Code 10103.7), when a homeowner suffers a total loss, the insurance company must advance at least 30% of your Coverage A limit as personal property coverage without requiring a content or inventory list.
For example, if Coverage A is $500,000, the insurance company must pay at least $150,000 (capped at $250,000). Your insurance company will most likely require you to create an inventory list to get access to the remainder of the policy amount. This can be emotionally challenging, as you must remember and record everything you’ve lost.
We strongly encourage you to complete an inventory list now and not just stop when you hit your policy maximum. A complete inventory will be vital for your claim, especially if you file an Eaton Fire lawsuit. More on this below.
Tip: Photos and videos can be used to prove what you had. Recording your items on a spreadsheet can be helpful, too. United Policyholders is a non-profit that provides a template that goes room by room with hundreds of typical household items. Your insurance company may also provide you with a form, so be sure to ask.
Coverage D (Loss of Use)
Often referred to as Additional Living Expenses or ALE, this coverage provides living expenses after a covered loss, like food and temporary living expenses. Policies can differ, but generally, you are entitled to secure temporary housing similar to what you lost. If you are staying with friends or family, remember that you can pay them a fair rental rate, which the insurance company may reimburse. Be sure to speak with your insurance company about your coverage and limits.
Tip: Scrutinize the insurance company’s claim of what your monthly expense calculation is based on, as that will serve as the basis for your ALE payment. You are entitled to rent a like for like dwelling, so be sure that their estimates match what you consider to be comparable to what you lost.
Insurers must advance you at least four months of ALE to help you get situated. After that initial payment, you typically must pay for your living expenses and then file for reimbursement. Be sure to keep thorough documentation, photos, and receipts. Your insurance company can provide you with a list.
What to Know About Debris Removal
Many policies have a specific debris removal allocation. Shortly after the fires began, President Biden agreed that the full cost of debris removal would be covered for the next six months. In other large-scale disasters, the county and state, with federal assistance, often come in and offer a “free” debris-removal program. However, if you have debris-removal insurance coverage, that “free” program may take any insurance money allocated for debris removal.
Homeowners are responsible for clearing their lots, but they are not required to accept the county program.
Tip: Consider the implications of signing up for the county plan. You could lose control over what stays or goes. For example, you might have a retaining wall or a salvageable gate, but the county’s team might haul it away. Before you decide to opt-in to any county program, review your policy and get a bid from a private licensed debris removal contractor to make an informed decision about what is best for your situation. Before your lot is cleaned be sure to document everything with photographs and diagrams. Use a rule or tape measure so there is a frame of reference in your photos.
What to Know About Trees and Vegetation
Many policies cover tree and vegetation loss. If you have coverage, thoroughly document all damage to trees and vegetation with photos or video before the lot is scraped. Place a ruler next to any destroyed tree; the trunk diameter can be vital in helping an expert determine how old the tree you lost was.
Common Issues in Wildfire Claims
Safety and Documentation
Air contaminants not measured in the Air Quality Index are present in our communities, so consider using a mask when you are outdoors. When you return to your property, be aware of hazardous debris (asbestos, lead, arsenic). A P100 or n95 mask should be worn at all times. Take photos and videos of everything before you disturb any debris, and send copies to your insurance carrier. Be sure to have adequate PPE, such as boots, gloves, and clothing that covers your arms and legs.
Predatory Actors
After wildfires, there is the risk that bad actors will descend on the affected areas, looking to capitalize on the disaster and the uncertainty that affected people are facing. For example, cleaners might show up unannounced, offering to handle smoke damage cleaning if you sign over your insurance proceeds. Others might make vague promises that they can get you money fast. Vet them thoroughly before agreeing to their offer.
Public Adjusters: Insurance adjusters that work for homeowners and policyholders are called Public Adjusters. They do the same work as insurance company adjusters but will fight to maximize your recovery under your policy. They are often a good first step and a better alternative than hiring an attorney if you run into claim disputes, especially because they know insurance much better than most attorneys and typically charge less.
The state licenses Public Adjusters. Check their credentials on the Department of Insurance website. If you hire a Public Adjuster, be sure that the fee they charge is only based on the recovery they obtain for you, not your total policy value.
Attorneys for Bad Faith: If the insurer unreasonably delays or denies your claim, you may have a “bad faith” claim. This is quite specific; not all disputes qualify as bad faith or justify the filing of a bad faith lawsuit. Hiring an attorney just to handle your claim (rather than for bad faith litigation) can be expensive and may deplete your insurance funds. Always consider a Public Adjuster first to help with the claims process.
Revolving Door of Adjusters
Because of the high number of claims, you may be assigned multiple adjusters over time. Following up in writing (e.g., email) is important for every conversation you have with the insurance adjuster. An adjuster’s notes may be brief and incomplete, so your written summary in the email becomes part of your insurance file and can help the next adjuster quickly catch up.
Smoke Damage
Smoke damage can be a big issue for partial losses or when a structure is still standing. Insurers often want to “clean” instead of replacing, but smoke is corrosive and can penetrate soft fabrics, walls, and certain surfaces.
You are entitled to have your home returned to its pre-fire condition, so if you suspect the damage is deeper than the insurer acknowledges, push for a thorough inspection or consider hiring an industrial hygienist or other professional to inspect the damage thoroughly. Your insurance company may insist a simple cleaning is sufficient but do not take their word for it.
Eaton Fire Lawsuit May Help Cover the Entirety of Your Losses
If you lost your home in the Eaton Fire, the unfortunate truth is that homeowner’s insurance alone will probably not cover the entirety of your losses. That’s why a lawsuit will likely be your best path to a full recovery.
California law can require a utility company to pay for property damages when its equipment starts a fire. Eaton Fire lawsuits filed over the last week allege Southern California Edison (SCE) equipment started the blaze. Damages in a lawsuit can pay for your destroyed or damaged home, a shuttered business, lost rental income, and more.
Retaining an experienced wildfire attorney can help you stand up to any parties responsible for the fire as well as insurance companies. Your attorney will investigate your claim thoroughly to prove who is at fault and ensure your losses are valued correctly.
In summary, a lawsuit can help protect your rights and secure the compensation you truly deserve beyond what standard insurance might provide.
Free Legal Assistance for Eaton Fire Victims – Let Us Help with Submitting Proof of Loss
We hope this information helps you begin the recovery process with a clearer understanding of your options. If you have questions, you can contact reputable nonprofits, local agencies, or licensed professionals who can guide you through these next steps. Our wildfire attorneys are also available to help you during this difficult time. If you would like to schedule a one-on-one consultation to go over your claim, call us at 855-948-5098 or fill out our contact form.
