Damage that is hard to see
Total losses are often easier to describe, even when they are hard to value. Disputes often begin with homes that did not burn but were filled with smoke and ash, because insurers and owners may disagree about whether cleaning is enough or whether materials, systems, and contents need replacing. Trees, outbuildings, fences, and landscaping may fall under separate policy limits or none at all. Rebuilding to current building codes can cost more than restoring what was there, and policies differ on whether that extra cost is covered. Reading the declarations page and endorsements early tells you which limits and coverages are actually in play.
Proving the loss
Take photographs and video of the property and contents before cleanup begins, when it is safe to do so, and keep any testing results if smoke contamination is disputed. Build an inventory room by room, using old photos, receipts, and card statements to fill in what can no longer be seen. Keep receipts for lodging, meals, and other extra costs during displacement, since many policies cover additional living expenses. Many replacement cost policies pay a depreciated amount first and the remainder after repair or replacement, so track the policy's deadlines for claiming the balance. Get your own contractor's estimate rather than relying only on the insurer's.
Disputes and claims beyond the insurer
When the insurer's number seems too low, options include supplementing the claim with more documentation, invoking an appraisal clause if the policy has one, and in some cases bringing a claim against the insurer. Separately, if a utility, a contractor, or another party caused or spread the fire, a claim against that party may reach what insurance did not. In California, wildfire claims against utilities can rest on legal theories that many other states do not recognize, which is one reason the location of the fire matters so much. We review the policy, the claim file, and the estimates, and we tell you plainly where counsel licensed in the state of the fire should take the lead.
