Does Homeowners Insurance Cover Wildfire Damage in California?

Recent fires in the Los Angeles area have destroyed many homes and businesses. This has also caused everyone in the state to consider what exactly will be covered by their insurance policies. As the smoke clears for some and people assess their damage, many wonder if homeowners insurance covers wildfire damage in California.

The short answer is “Yes,” though it will depend on the type of insurance coverage you had before the fires broke out.

California’s Fire Insurance

Over the last several years, global warming and extreme weather concerns have caused many private insurance companies to pull out of California, leaving many home and business owners without adequate coverage. The remaining insurance companies raised fire damage insurance rates, making it impractical for many.

To help residents and businesses, there is an alternative fire insurance company in California called the California FAIR Plan, which offers:

• Residential fire insurance coverage up to $3 million
• Commercial fire insurance coverage of up to $20 million

The California FAIR Plan gets funding from other insurers in the state. This enables them to avoid charging taxes to cover individuals and businesses while remaining state-run.

What Fire Damage Will Insurance Cover?

For those with insurance coverage, the actual payout for damages will vary depending on your coverage type. Generally, these policies cover up to 80% of the replacement cost of your home. They may also compensate you for losing your personal property and some of your displaced living expenses. You’ll need to consult your insurance agency to find out how much help you will get.

If you are part of the FAIR and unsure what your policy will cover, you must contact your broker. They will walk you through the type of coverage you have purchased. You can also look at your policy contract to see if you can find the details.

Help for People Without Insurance Coverage

Being without insurance and losing everything is devastating. However, there are several ways to seek help during these troubling times.

The California Fire Foundation may provide cash to help some victims of the fires, including those who live in the Palisades and Eaton areas. To take advantage of this, you must have proof of address and a photo ID ready when you apply for SAVE (Supplying Aid to Victims of Emergency) cards. This is only available to residential property owners. Business owners cannot use SAVE to help cover the cost of their business loss.

The California Department of Social Services (CDSS) Disaster Services Branch (DSB) can provide grant assistance through two programs: the State Supplemental Grant Program (SSGP) and the Disaster Case Management Program (DCMP). Because President Biden declared California a disaster area, these two programs and FEMA can help individuals without fire insurance.

It is important to note that FEMA can also help people who have fire insurance as the long road to recovery starts. You need to apply for FEMA assistance.

What Happens Next for Victims of the California Wildfires?

The first step for all homeowners and businesses should include replacing lost documents. This will allow you to file for assistance more quickly and hopefully get you started on your recovery efforts. It is also essential to understand that if you were injured during the recent fires, you may be able to seek help paying for your medical expenses. This is where our legal team can help the most.

Contact Our Legal Team About Wildfire Damage Insurance Coverage in California Today

In most cases, the people who are wondering if homeowners insurance covers wildfire damage in California can get help the fastest because it means they have insurance already. However, the road to recovery and rebuilding in California will not be quick and painless. It may take years to get everything back to the way it was. Talk to our legal team today to get support.