Severe wildfires have been raging through Los Angeles County since Tuesday, resulting in at least two fatalities and displacing thousands of residents.

Although the full extent of the damage is still unclear, the fires were reported as 0% contained by Wednesday. For the owners of over 1,000 properties destroyed, experts emphasize that there are strategies to ensure their insurance claims are processed justly and reimbursed completely.

“Recognize that filing a substantial insurance claim effectively requires you to represent yourself,” stated Amy Bach, executive director of United Policyholders, a consumer rights organization. “People must approach insurance claims as if they were a business deal and adopt a similar mentality.”

Insurance Advice for Homeowners Affected

The initial priority for homeowners impacted by the fires is ensuring their own safety, along with that of their families and pets, according to Michael DeLong, a research and advocacy associate from the Consumer Federation of America, a consumer advocacy group.

Once safe, homeowners are urged to reach out to their insurers immediately. Upon returning home, they should take photos and videos, and create a journal to record the damage.

Policyholders should ensure they document every communication with their insurance provider and keep a tally of their expenses. DeLong recommends saving receipts for temporary lodging, food expenses, and initial repairs.

If homeowners opt to carry out immediate repairs, it’s crucial to screen any adjusters or contractors they intend to hire to confirm their licensure.

“Sadly, scams targeting disaster victims are quite commonplace,” warned DeLong.

If homeowners suspect that their insurance claims are being mishandled, they should contact the California Department of Insurance. The department’s website provides a form for filing complaints.

Looking ahead, DeLong advises homeowners to take protective measures against future wildfires. Installing fire-resistant roofs or clearing flammable vegetation nearby can help reduce potential damage.

“Although it may require an upfront investment, it can lead to long-term savings and even safeguard your home and life,” DeLong explained. “The challenge is that implementing these measures requires time and finances, which can be difficult for individuals living paycheck to paycheck.”

Are Homes Insured?

Homeowners insurance generally covers wildfire damage, as outlined by the Insurance Information Institute.

Bach noted that a standard insurance policy typically includes coverage for temporary housing, repairs, rebuilding, smoke damage, personal property replacement, and damage to surrounding landscapes. Vehicle damage is usually covered by auto insurance.

While mortgage lenders often require homeowners insurance, most American homeowners do carry some level of coverage. However, as insurance fees rise and companies withdraw from states like California, there’s a growing trend of homeowners who own their properties outright choosing to forgo their insurance.

Additionally, those unable to secure adequate insurance in the private sector have turned to the California FAIR Plan, which provides basic coverage at higher rates and with limited benefits. By late 2024, over 450,000 FAIR Plan policies were active in the state, doubling since 2020.

“California’s home insurance market was already facing difficulties, making it increasingly challenging for homeowners to maintain affordable insurance. These fires will likely exacerbate that problem,” Bach stated.

Bach cautioned that homeowners impacted by the fires might discover they are underinsured or paying for a policy that does not fully cover reconstruction or repair costs.

“It is quite common for those who lose their home in a wildfire to realize they lack sufficient coverage,” Bach expressed. “Whenever a fire occurs, it’s a good time to evaluate the cost per square foot to hire a contractor for rebuilding your home if it were completely lost.”