Fire Insurance Tips for Policyholders

1.10.25

News & Publications

Our thoughts and prayers go out to those affected by the recent wildfires. While filing a fire insurance claim may be the furthest thing from one’s mind when dealing with a loss, small steps before and right after a claim event can significantly enhance later recovery. Here are a few tips to consider when dealing with a fire loss:

1. Locate a complete copy of all insurance policies that may provide coverage. Your coverage will be defined by the terms of the policy. Quotes, declarations pages or summaries from your broker are not adequate evidence of coverage. Reach out to your agent or broker for a complete copy of your policy if necessary.
2. Review the policies to understand the nature and extent of potential coverage and the type of claim you should file. All policies are different, and coverage could vary greatly depending on the terms and sub-limits contained in the policy. The policy will dictate the limits of coverage and potential recovery for each type of claim. Claims may include but are not limited to the following: total loss, partial loss, smoke and soot damage, water damage, Additional Living Expenses (ALE), content coverage, loss of use, and debris removal.
3. Keep detailed records of all expenses incurred due to the fire. Take photographs and video of any damages. This evidence will be critical in substantiating your claims for reimbursement.
4. It is generally better to file the claim than to worry about increased premiums or a cancellation of the policy. Repair costs and other damages are often much higher than anticipated. As a result, it is almost always better to file a claim even if the damage seems minor or you are worried about increased premiums or a policy cancellation.
5. File the claim with your insurance company immediately. Consult the policy for information regarding how to make a claim. Make the claim directly or through your broker, or preferably both.
6. Ensure you have written confirmation of the insurance company’s receipt of your claim. At a minimum send the insurance company an e-mail to have a written record confirming that the insurance company has been notified of your claim.
7. Insurance companies have a duty to conduct a full, fair and thorough investigation of your claim. Request an inspection of the loss as soon as possible. Be persistent in your efforts to engage with the carrier and document all communication. Failure of the insurer to promptly and thoroughly investigate your claim could constitute bad faith.
8. Unless it is a matter of personal safety, do not make repairs without the insurance company’s approval. Your policy likely contains a voluntary payments clause which prohibits the insured from making payments without the carrier’s approval. One of the first approvals you will likely need is approval to proceed with cleanup and debris removal.
9. Carefully consider your limits and any excess/umbrella policies. Scrutinize all available coverage limits and endorsements to determine whether your limits are sufficient to cover the damage or if you should anticipate a shortfall. Depending on the policy language, you may be entitled to supplemental limits or enhanced coverage, such as extended replacement cost coverage or inflation protection. Also consider whether excess or umbrella policies may provide additional coverage. Reach out to your broker and/or legal counsel if you believe your claim is being undervalued or your limits are inadequate.

Fire loss claims can be extremely complex, especially regarding ALE or rebuilding the property on an actual cash value or replacement cost basis. Careful interpretation of the policy and presentation of damages are key to maximizing policy benefits.