Wiledfire Damage Insurance Claims

Wildfire Insurance Claims

 

Wildfires happen in 38 states across the United States, and California is leading in the number of insurance claims filed by victims. Over the past decade, losses caused by wildfires add up to more than five billion dollars. A 2017 Verisk Wildfire Risk Analysis report showed that about 4.5 million homes in the United States are at high/extreme risk of wildfire, with 2 million of them being in the state of California.

Wildland-Urban Interface (WUI) is the term used to refer to areas prone to wildfires. About 44 million US houses are located in the WUI. There are several measures that people living in such areas can take to lessen the spread of wildfire to their homes. Having wildfire insurance can come in handy if your property is destroyed by wildfire and you need to file a claim.

What Wildfire Coverage is provided in Homeowners Insurance Policies?

Standard homeowners insurance packages usually cover damage caused by smoke and fire, so they cover wildfire damage too. However, you should note that not all insurance firms will cover damage by wildfire if you live in a high-risk zone. You should always find out how your home insurance policy will cover you. Insurance providers want to minimize costs as much as possible.

Your home insurance policy can cover the damage caused to your dwelling, extra structures, backyard and landscaping objects, removal of debris, and other personal belongings, as a result of fire or smoke. On the other hand, condominium or renters insurance might cover your personal belongings and additional living expenses.

Are There Limits on Wildfire Insurance Claims?

Every insurance policy is different; therefore the coverage limits and exclusions on your policy will be determining factors on how much you may be paid for a wildlife insurance claim. Payment of claims will depend on whether your basis of settlement is on actual cash value or on a replacement cost basis.

Given that your property is underinsured and you file a claim because of wildfire damage, similar to any other kind of insurance claim, you’ll not get paid what you need if you’re under insured.

Will the Insurance Cover Living Expenses?

If your dwelling has become uninhabitable due to a covered risk, then you might be able to receive compensation for your living expenses. Additional living expenses are normally included in home, condominium and renters insurance policies. This is the insurance cover you’ll require to be compensated for the raised cost of living because of damage by wildfire to your home. However, the coverage is normally limited to a specified amount which is listed in the insurance policy.

Is Wildfire Damage to Cars Insured?

A comprehensive car insurance policy will insure damage caused by wildfire to your car. However, if you simply have a minimum car insurance policy only, your vehicle will not be insured against the damage. If you live in a region that is prone to wildfires, it is smart to invest in a comprehensive car insurance policy.

 

Do all Insurance Providers Cover You for Wildfire?

No, insurance firms have a right to determine where they feel comfortable providing insurance and will issue insurance coverage based on their perceived risk assessment. If you live in a region that is at high risk for wildfires, your insurance company might not be willing to issue you with wildfire insurance. In such a case, you might need to seek a Fair Plan homeowners insurance option. For example, in the state of California, residents can get wildfire insurance coverage via the California Fair Plan.

 

2018 Wildfires in California

Residents in California witnessed the destruction of personal property and other catastrophic losses in the 2018 wildfire season. From the middle of July to August that year, a series of fires erupted across California, majorly in the northern parts. On 4th August 2018, a national disaster was declared in that particular area because of the extensive wildfires burning down homes and other properties.

In November 2018, some strong winds aggravated the second round of large, destructive wildfires that happened across the state. The 2nd round of wildfires included the Camp Fire (in San Francisco) and the Woolsey Fire (on the outskirts of Los Angeles).

The Camp Fire led to the deaths of at least 86 people. This fire destroyed over 18,000 structures, making it the most destructive wildfire on record in this state in terms of the number of structures lost. It broke out on the morning of 8th November 2018 and moved at a deadly pace, leading to the destruction of about 200 square miles in the northern part of the state. The quick spread of the wildfire made successful evacuations almost impossible. The Butte County Sherriff’s Office reported that over 6 people were burned to death in their vehicles as they attempted to escape.

Before Camp Fire, the other deadliest wildfire in the record was the 1933 fire that blazed in Los Angeles’ Griffith Park. It resulted in the demise of 29 laborers who were trapped in the sudden flames. Camp Fire’s total death toll was nearly triple that.

The Woolsey Fire led to the demise of 3 people. According to the LA County Sherriff’s Department, 2 of the victims were found burnt in a vehicle in Malibu near the Mulholland Highway, while the 3rd victim was in the wreckage of a house in Agoura Hills. Fueled by the strong Santa Ana winds, this wildfire destroyed about 1,500 structures and razed over 96,000 acres of land around Los Angeles.

Several factors fueled the catastrophic nature of the 2018 California Wildfire Season. The combination of raised amounts of natural fuel and the compounding climatic conditions connected to global warming led to the series of damaging fires.

 

 

Human beings have been proven to be the main cause of the California wildfires. Intentional and accidental causes such as arson, unattended campfires, cigarettes, vehicles, fireworks and electricity lines have all contributed to the rise in the number of fires. Using updated equipment, making sure that maintenance of forests is completed, and added oversight by state and national governments can mitigate the risk of wildfires.

Wildfire season in this state usually runs from the late summer through to the fall, but as the climate continues to change, higher than normal temperatures, as well as drought conditions, are on the rise. Fire officials in this town of paradise are acknowledging the fact that wildfires might not be limited to any season.

A young Camp Fire evacuee is waiting in line to get a free Thanksgiving meal at the Sierra Nevada Brewery in Chico, CA on 22nd November 2018. Justin Sullivan/Getty Images

Over 800 volunteers spent their 2018 Thanksgiving holiday providing help to search for fire victims, as reported by the Associated Press.

Insurance Claims in California

 

California tops the list of U.S. states with the most wildfire insurance claims. The California wildfire disaster that occurred in November 2018 led to insurance claims that topped $11.4 billion, as of January 28, 2019. According to Ricardo Lara, State Insurance Commissioner, over $8 billion worth of damage came from the wildfire that disrupted the town of paradise and led to the death of 86 people and destruction of about 15,000 homes. Approximately $3 more was from the fire in Southern California that happened in the same week.

California wildfires are getting more destructive every year and the wildfire season seems to be lasting longer because of climate change. The 2017 series of wildfires that hit California’s wine country and parts of Southern California were the most costly in the state’s history at $11.8 billion.

It is already harder for residents in fire-prone areas to acquire insurance policies, but the State Insurance Commissioner affirms that city of paradise has not reached a point where it is impossible to find insurance. There’s a law that mandates insurance companies who don’t renew policies to inform clients of other policy options, including FAIR plan.

California Issues a Declaration to Allow Insurance Companies to Use Out-Of-State Adjusters

Following the Camp and Woolsey wild fires in 2018, California’s insurance commissioner Dave Jones declared an emergency situation to allow insurance firms to utilize out-of-state adjusters in an effort to tackle the huge volume of wildfire insurance claims.

After a natural disaster, allowing use of unlicensed adjusters often results in representations by the insurance providers in contrary to state laws. Learning from mistakes done in the past, the notice made by the insurance commissioner mandates that any claim adjusters, whether licensed in this specific state or not, should be based on the California state laws and regulations. Unlicensed public adjusters are not allowed to provide services.

Insurance policyholders in this state have 36 months following a declared disaster to claim full replacement costs to reconstruct, replace at another location, or buy an already-existing house at another location. Depending on policy provisions, coverage for additional living expense is also accessible for the same period.

We recommend contacting Shield Public Adjusters before dealing  with insurance companies adjusters. As licensed Public Adjusters we are ready to help at any time