Disaster Insight: Navigating Homeowners Insurance Claims After Wildfires and Total Loss

Wildfires can expose issues across all areas of property claims, from small claims due to smoke damage to total loss claims where everything is lost. These claims are complex, difficult, and emotional. Every primary coverage will be addressed in total loss claims (building, contents, other structures, and Additional Living Expenses) along with many supplemental coverages and endorsements. Unfortunately, it's after events like these that we often see unneighborly behavior from insurance companies. To help you navigate these challenging claims, we've put together some essential tips:

1. Keep Meticulous Notes

Get a fresh notebook or use a digital notepad to document every conversation with insurance personnel, contractors, neighbors, or anyone involved. This will help you keep track of important information and ensure nothing is overlooked.

Key Points to Note:

• Date and time of the conversation

• Names and roles of individuals involved

• Summary of the discussion and any promises made

• Follow-up actions required

2. Don’t Assume You’ll Get Paid the Policy Limit

Even if everything is lost, insurance companies often seek to limit their responsibility. They may contest your claim to minimize their payout.

What You Can Do:

• Understand your policy limits and coverage

• Be prepared for negotiations and possible disputes with your insurer

• Seek professional help, like a public adjuster or attorney, if needed

3. Request Full Limits in Writing, Especially for Contents

Insurance companies will ask for a detailed inventory list, which can be overwhelming when everything is gone.

Tips for Managing This:

• Request full limits for contents coverage in writing

• Refer to resources like the United Policyholders' Disaster Recovery Handbook for guidance

• Ask your insurance company if you can provide more general descriptions in categories (e.g., 20 men's jeans, 30 t-shirts) instead of itemized lists

4. Work Only with Experienced Fire Restoration Vendors

Fire restoration comes with unique challenges that require specialized expertise.

When Selecting Vendors:

• Ensure they have extensive experience in fire restoration

• Check references and reviews

• Verify their credentials and certifications

• Discuss your specific needs and expectations upfront

5. Prepare for a Long Process

If you have experienced a total loss, understand that these claims take time. The cleanup process is prolonged even before the rebuild begins. The entire process is emotionally taxing.

Coping Strategies:

• Stay organized and keep detailed records

• Maintain communication with your insurer and contractors

• Lean on support from friends, family, and community resources

• Take care of your mental and emotional well-being

It’s incredibly tragic that people are forced to navigate such a difficult process as an insurance claim after losing so much. We encourage you to advocate for everything you are owed and lean on whatever resources are available.

Disclaimer:

This blog is intended for informational purposes only and does not constitute legal or financial advice. Tugboat provides information and support, but we are not licensed public adjusters or attorneys. We do not negotiate or adjust claims on your behalf. All advice given is intended to empower you in managing your own claim, but it is ultimately your responsibility to pursue and handle the claim. Tugboat is not responsible for claim outcomes. Additionally, our tools are provided based on the information you provide, which may be incorrect or incomplete. Always consult a licensed professional for case-specific guidance.

Need expert guidance on a homeowner’s insurance claim? Tugboat Claims is here to help!