How to File a Wildfire Claim
Wildfires are dangerous natural disasters that can affect many regions of the country, even places where you least expect them. Whether you currently reside in one of these impacted areas, own property there, or are nervous about wildfires happening in your area, it’s important to understand how you’re protected and what you’ll need to do once damage occurs.
Wildfires & Your Insurance
When a wildfire affects you, your family, or your business, there are a few things you'll want to be sure are protected:
- Buildings and structures
- Your property and belongings
- Cars and vehicles
- Loss of income or profits
- Temporary lodging and meals
Homeowners Insurance
If damage or destruction is caused by fire, coverage should be available under your homeowners or renters insurance policy. This includes your personal belongings and the physical structure of your home. If you must stay in a hotel and eat meals out because a wildfire has damaged your home, your insurance policy may reimburse you for these Additional Living Expenses, also known as ALE.
Your insurance company will be responsible for covering the costs of repairing or rebuilding your home due to damage caused by both fire and smoke based on your policy's coverage limits and conditions.
You’ll want to check with your insurance provider, as the actual insurance payout you can expect to receive will differ depending on your policy's specific terms and limits.
Car Insurance
If you’ve chosen to include comprehensive coverage in your car insurance policy, your vehicle should be protected against damage caused by fire. It’s important to note that comprehensive coverage is typically not required, so check your policy to see if it is available.
Business Insurance
Typically, a business owner's policy (BOP) will cover fire damage to the building itself, inventory, and other property.
If you’re worried about a loss of profit or income, check and see if you have business interruption insurance. This can help cover what profits you would have made if your business were operating as normal, as well as any overhead costs you might incur as you set up a temporary location for your business.
How to Make an Insurance Claim
If the worst has occurred and your property was damaged or devastated by a wildfire, there are a few next steps you should take in order to file a claim with your insurance provider.
Step #1: Contact Your Insurance Company ASAP
The sooner you let your insurance company know the damage has occurred, the sooner they can send out an insurance adjuster and begin the reimbursement or payment process. Some insurance companies may even place time limits on claims—meaning, if you wait too long to file, they may not be required to pay out for the damage that has occurred. NOTE: Many companies may be overwhelmed in an emergency. Delays may be expected.
Step #2: Review Your Home Inventory
As is the case when making any homeowners insurance claim, having a home inventory is crucial to making the process smooth and seamless. Your home inventory documents should be saved somewhere online so you can access them from a hotel computer (or your phone), or they should be stored safely offsite.
It’s likely your insurance provider will ask you to complete a “Proof of Loss” form, in which you’ll need to provide descriptions of what’s been damaged or destroyed, how much they were worth, and when they were purchased.
If possible, do not throw anything away, no matter how destroyed or damaged it may be. You’ll want the insurance adjuster to be able to see the item and assess its damage for themselves.
Step #3: Ask What Is Needed
This is likely your first time facing such devastation, meaning you may not know what the insurance company needs from you. Don’t be afraid to request clarification on what they require in order to process your claim, and ask what you can expect the next steps to look like.
We encourage those living in an area that’s prone to wildfires to be well-prepared for possible damage to occur. Review your coverage to ensure you’re adequately protected should the worst happen. And if it comes time to file a claim, follow these steps to receive your payout promptly and efficiently.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
