As California continues to battle record-breaking wildfires, thousands of residents are once again facing the aftermath—displacement, uncertainty, and the daunting process of filing insurance claims. Wildfires don't just destroy homes; they test the limits of the insurance system itself.
In a recent Insurance Hour discussion, Karl Susman, a longtime California insurance expert and host of the program, shared crucial guidance for homeowners trying to navigate the complex claims process after a catastrophic fire. His insights help separate panic from practicality, offering a roadmap for homeowners to recover both financially and emotionally.
Fire damage is among the most universally covered perils in insurance. Whether you own a home, condominium, or rent an apartment, fire coverage is typically included in every property insurance policy.
As Susman explained:
"It's very unusual to have any type of property insurance policy—homeowners, condo owners, renters, HOAs—without fire coverage as the primary peril. The only exception would be a policy where fire is excluded because it's being obtained somewhere else."
This means that even if other risks—like flood or earthquake—require separate coverage, fire protection is almost always built in. Homeowners can take comfort knowing that unless they've explicitly waived or replaced that coverage, they're protected.
One of Susman's strongest recommendations for evacuees and affected homeowners is simple but vital: file your insurance claim right away.
Even if you're unsure about the extent of your damage—total loss, partial loss, or just smoke exposure—starting the claim early helps establish your eligibility and triggers important coverage benefits like Additional Living Expenses (ALE).
"If you're evacuated, put the claim in," Susman emphasized. "Whether you know if there's a total loss, a partial loss, or smoke damage—file it. Don't wait."
Many homeowners hesitate, worrying that filing a claim might affect their record or future premiums. However, Susman clarifies a key distinction:
"When it comes to catastrophe losses like wildfires, the insurance industry does not rate people based on catastrophe claims. These aren't underwritten on an individual basis. It's not something within the consumer's control."
In short, your rates won't increase simply because you were caught in a wildfire zone.
