Understanding Your Insurance Policy After a Wildfire: Key Insights for Homeowners

In the aftermath of devastating wildfires, navigating your insurance policy can feel overwhelming. Whether you're facing total loss, partial loss, or smoke damage, understanding your coverage is essential to securing the resources you need to rebuild.

Breaking Down Policy Coverage

Your insurance policy is more than just the dwelling cost—it includes multiple "buckets" that determine your payout:

• Dwelling Cost: The base replacement cost of your home.
• Extended Replacement Coverage: Additional 25–50% coverage for unexpected rebuilding expenses.
• Ordinance Law Coverage (Code Upgrade): Critical for older homes to meet modern building codes—often underinsured in standard policies.
• Debris Removal: Covers clearing rubble to prepare for rebuilding.
• ALE (Additional Living Expense) or Loss of Use: Compensates for temporary housing during the rebuilding process.
• Personal Property: Tangible items like furniture and clothing—photos and receipts are key for claims.
• As-Incurred Costs: Includes architectural plans, permits, and surveys, often covered outside the policy limit.

When to Consider a Public Adjuster

• Total Loss: Typically straightforward, involving all coverage buckets. Avoid hiring a public adjuster to preserve your rebuilding funds unless challenges arise.
• Partial Loss: More complex, often requiring a contractor experienced in insurance claims and, if necessary, a public adjuster to resolve discrepancies in coverage.

Key Considerations for Partial Loss Insurance companies often use software like Xactimate, which may undervalue unique or traditional finishes. If your home has historical or custom features, an experienced contractor can help advocate for accurate repair costs.

Tips for Maximizing Your Claim

• Request a detailed tally from your insurer to compare against your policy endorsements.
• Document your loss thoroughly with narrated videos and photos.
• Consult contractors familiar with insurance processes to evaluate rebuilding costs accurately.

Rebuilding after a disaster is challenging, but understanding your policy ensures you’re prepared. Take the time to review all coverage options, seek professional guidance when needed, and act swiftly to secure your future.

?? Tip: Connect with experienced professionals to navigate the claims process and restore your home with confidence. #HomefrontLA #WildfireRecovery #InsuranceClaims #RebuildingConfidence