We are in the midst of the most destructive series of Los Angeles fires in the city’s history. And there are no words to summarize the fear, horror, and grief associated with this tragedy so we won’t insult you by trying. But what we can do is try to answer some of the most common questions you’re likely having during this unprecedented city crisis.
Best Practices When Filing Your Insurance Claim
When speaking to your insurance company, check to see if you can get an advance on your claim, as well as your limits on temporary housing expenses. This will help you begin to get a clearer idea of your budget.
You may want to approach your claim from the perspective of rebuilding your home, even if you’re not 100% certain this will be your course of action. By stating an intention to rebuild, you’ll get a reasonable idea of how much coverage you’ll likely be provided for the full restoration. Some insurers may even prioritize a claim with an intent to rebuild.
Asking the Right Questions
You can also contact your insurance broker with questions that could help your situation. For example, some providers incentivize homeowners who engage in “fire hardening” to mitigate the chance of wildfire damage. You could also inquire whether your provider offers any additional coverage to compensate for unexpected cost surges. It’s also not a bad idea to check if you’re covered for expenses that cover costs related to mandatory evacuations.
Finally, when speaking to your California homeowners insurance broker, check to see whether your policy covers the current market value. So many commodities regularly used in construction have risen in price since the pandemic. To make sure you aren’t undercovered, try to insure yourself beyond the quoted estimate.
First Steps If You Think You’ve Lost Your Home (Whether or Not You’re Insured)
Even if you don’t have homeowners insurance, you may be able to obtain financial assistance and relief from the Federal Emergency Management Agency (FEMA) and the state of California. That’s because the Los Angeles fires have been declared both a national and state disaster.
First, you’ll need to confirm that you did indeed lose your home in the Los Angeles fires. From there, visit the Los Angeles County Assessors website and register your home address for a claim. Then, to register for FEMA aid, visit their site at DisasterAssistance.gov or call them at 1-800-621-3362 to register. Again, the sooner you can register your claim, the better. It’s also worth noting that Airbnb in partnership with 211 LA extended an offer to evacuees in the early days of the Los Angeles fires for a free week-long stay at one of their properties. For details, evacuees are encouraged to dial 2-1-1 or visit 211 LA’s website.
Your Last Resort: The California FAIR Plan
If none of the above helps you, then you may be in the market for the California FAIR Plan. Before we get into the specifics, we should stress that the FAIR Plan is designed as a last resort. Therefore, you shouldn’t expect to maintain coverage through the FAIR Plan indefinitely.
The FAIR Plan will only cover a maximum of $3 million anyway, so most would view it as an inadequate replacement for the kinds of home insurance California brokers offer. It also costs more than your average California homeowners insurance policy. But as a last resort, it can be a godsend for property owners unable to find homeowners insurance. Rebuilding comes later,today we survive.