The recent catastrophic fires in Los Angeles have left many families and businesses grappling with the devastation of losing homes, possessions, and sources of livelihood. Fire insurance claims arising from these events represent some of the most important—and challenging—claims policyholders ever make. Fires caused by natural disasters, such as wildfires, are notoriously destructive, often leveling entire neighborhoods and leaving survivors to rebuild their lives from the ashes.

Unfortunately, these claims are also among the most fiercely contested in the insurance industry. Insurance companies may deny coverage, argue over policy interpretations, or significantly undervalue your claim. At Oksenendler Law, P.C., we have years of experience helping clients navigate the complex landscape of fire and natural disaster claims. Our attorneys are well-versed in standing up to insurance companies when they aren’t playing fair. If you’re facing challenges with your claim, we’re here to help.

We invite you to send an email to our office today if you would like to discuss your concerns with one of our attorneys.

Natural Disaster Insurance Issues

Depending upon where you live in the country, your home or business may be vulnerable to damage or destruction from earthquakes, hurricanes, or tornadoes. It is important to know whether your homeowner’s insurance, condo or renter’s insurance, or commercial insurance covers the particular type of disaster to which your area is prone. If it is clearly excluded, you may want to consider special insurance to cover the specific event. This type of insurance is typically more costly, however, if you are in a disaster-prone area. You will have to study the terms of the policy before you purchase it to make sure it doesn’t contain exclusions and fine print that makes the insurance virtually worthless.

Natural disasters can cause fire damage, water damage, and windstorm damage, raising questions as to liability. Wind damage is generally covered, and most tornado damage can be properly classified as wind damage. In the case of hurricanes, however, which also have strong wind damage components, major damage can also come from the storm surge and flooding, which occurs along with a hurricane’s landfall. In many cases, it can be difficult to tell whether the damage is due to flooding (normally excluded) or wind/wind-driven rain (normally included). For instance, if a storm surge causes a sewer pipe to burst, which results in water damage, is the damage due to flooding or a pipe failure? These issues are often vigorously debated and must often be resolved through litigation.

Fire Insurance and the Unique Challenges It Presents

Fires resulting from natural disasters like wildfires present unique challenges in the insurance claims process. While most homeowner’s policies provide some coverage for fire damage, the extent of that coverage can vary widely depending on your specific policy. Additionally, exclusions and fine print in the policy can create significant barriers to receiving full compensation.

For example, many policies cover fire damage but exclude damages caused by related events such as smoke damage, water damage from firefighting efforts, or landslides triggered by post-fire erosion. Understanding these exclusions and how they apply to your claim is critical. Furthermore, policies may impose strict deadlines for filing claims, documenting damages, and providing necessary proof. Missing these deadlines can result in denied or significantly reduced claims.

In the wake of the L.A. fires, many residents and business owners are discovering that their coverage may be insufficient to fully rebuild. Fire insurance policies often have caps that don’t account for rising construction costs or the financial strain of temporary relocation. For those who have not updated their policies in years, these gaps in coverage can be particularly devastating.

Understanding the Role of Wildfire Insurance

For homeowners and businesses in fire-prone areas like Los Angeles, having a specific wildfire insurance policy can make a significant difference. Wildfire insurance is a supplemental policy designed to provide additional coverage for fire-related losses. This type of coverage often extends beyond the limits of standard homeowner’s insurance, covering:

• Rebuilding Costs: Including expenses for construction, materials, and code compliance.
• Personal Property: Replacement costs for furniture, appliances, and other possessions.
• Relocation Expenses: Costs of temporary housing and living expenses while rebuilding.
• Land Restoration: Costs associated with removing debris and restoring land damaged by fire.

However, wildfire insurance policies are not without challenges. These policies often come with higher premiums and detailed exclusions. For instance, some policies may exclude damages caused by fires that spread from uninsured properties or public lands. Reviewing and fully understanding these terms is essential to ensure you’re adequately protected.

Don’t Be Fooled by Insurance Company Tricks

In the aftermath of a natural disaster, insurance companies may employ tactics to minimize payouts. These tactics often include:

• Lowball Settlements: Offering a quick payout that represents only a fraction of your total claim. Accepting this payment may waive your rights to seek further compensation.
• Policy Interpretation Disputes: Claiming that damages fall under exclusions in your policy, such as classifying damage as caused by a secondary event (e.g., water damage or landslides) rather than fire.
• Delays and Denials: Stalling the claims process or outright denying claims, hoping policyholders will give up or accept less than they deserve.

For example, a common insurance tactic is to offer a quick settlement that represents only a fraction of your claim in hopes that you will cash the check to cover immediate expenses and waive your rights to collect any more on your policy. It may also be hard immediately after a disaster to assess the total amount of your damages. If you have specialized insurance, that company may try to pass off the damage as the responsibility of your general liability policy, and vice versa. Don’t fall prey to these tactics.

Navigating these tactics requires knowledge of your policy’s terms and the assistance of a skilled attorney who can advocate on your behalf.

How Oksenendler Law, P.C. Can Help

At Oksenendler Law, P.C., we understand the heartbreak and frustration of dealing with fire insurance claims after a disaster. Our experienced attorneys are dedicated to ensuring that policyholders receive the full benefits they are entitled to under their insurance policies. Whether you need help interpreting your policy, negotiating with your insurance company, or pursuing litigation for bad faith practices, we’re here to guide you every step of the way.

The fires in Los Angeles have left a profound impact on individuals, families, and businesses. If you’re struggling to navigate your insurance claim, don’t go through it alone. Contact our office by email or call (415) 733-1050 today to schedule a consultation with one of our experienced insurance law attorneys. Let us help you rebuild and recover.