About 90% of wildfires are caused by people and the remaining 10% by lightning or lava, according to the Insurance Information Institute.
Wildfire season is here, and with droughts and the increase in wildfires, some California homeowners insurance companies are dropping customers.
However, California provides insurance for homeowners unable to get coverage through the California Fair Access to Insurance Requirements (FAIR) Plan Association.
Although homeowners insurance covers damage from fires, if you live in areas prone to wildfires, you may need to increase your dwelling and personal property coverage limits.
Does homeowners insurance cover wildfire damage?
Homeowners insurance covers your home and personal property from damage, referred to as insurance perils. A peril is an event that may damage your home or belongings, like theft, fire, or a storm. Common insurance perils include fire, lightning, theft, ice, snow, sleet, wind, hail, smoke, vandalism, and freezing.
Homeowners insurance covers fire damage. However, if you live in areas where wildfires are common, Steve Wilson, senior underwriting manager at Hippo Insurance, recommends getting a rider for extended replacement cost coverage under your dwelling coverage because material costs to rebuild go up after a wildfire.
Dwelling coverage is the part of a homeowners insurance policy that can help cover the cost to repair or rebuild your home if it is damaged.
It’s also important to make sure you have enough personal property coverage. There are limits to standard personal property coverage depending on your policy and insurance carrier, usually $100,000.
Additionally, if you have extensive landscaping, contact your homeowners insurance provider because some companies have limited coverage for shrubbery, according to Allstate.
Specialty items may be excluded or require add-on coverage
Also, specialty items like high-end electronics, special jewelry, furs, fine arts, firearms, and cash may not be covered against wildfire damage. Wilson said these items may need a “personal article” endorsement or add-on rider.
For specialty jewelry, you can purchase a floater policy as an add-on to your homeowners insurance. Another option is to purchase standalone personal jewelry insurance. Your jewelry and fine art must be appraised before purchasing a floater or standalone policy.
It’s a good idea to take inventory of your furniture and personal possessions. Some homeowners insurance companies will have inventory lists for you to complete. If you have riders for fine art and specialty jewelry, you will be required to catalog and provide appraisals for them.
Will homeowners insurance cover relocation?
“Loss of use” coverage, also known as “additional living expenses” or ALE, is included in most homeowners and renters insurance policies and provides reimbursement for temporary housing when a peril causes damage that makes your home or rental unit inhabitable.
For “loss of use” and “additional living expenses,” much depends on your insurance carrier and it varies by provider. Some carriers will reimburse you for temporary housing. Others may have a list of housing alternatives.
Ashlee Tilford, managing editor for Insurance.com, told Insider that most homeowners have a misconception of what constitutes “inhabitable.” Don’t assume that your insurance carrier will pay additional living expenses, because the definition of inhabitable varies by company.
If you’re considering leaving your home due to wildfire damage, contact your homeowners or renters insurance provider first and take detailed pictures of the damage. Make sure to lock up and secure the premises as well.
What to do if you experience damage from a wildfire
Whenever you file a claim, your deductible applies. After experiencing a disaster, Wilson recommends staying in touch with your homeowners insurance company to let them know what’s going on at your home and take the following steps when submitting insurance claims:
1. Contact the insurance carrier to file a claim in a timely manner. For homeowners, your carrier may provide a list of contractors and offer advice on do-it-yourself tips to prevent further damage. If you’re a renter, you should also inform your landlord or property management company.
2. Take pictures of the damage before disposal and cleanup.
3. Beware of price-gouging contractors and door-to-door scammers. Ask contractors for their license and insurance credentials to avoid fraud. If you’re a renter, your landlord is responsible for the building and structure.
4. Prevent further damage to your property. Don’t do something you’re not comfortable with/that doesn’t look safe. Homeowners insurance has a condition to prevent further loss. Focus on a temporary fix instead of something long-term so insurance can properly access a permanent fix by a professional.
Emergency Readiness Supplies from NYC Fire Dept
Tips to prepare your home in the event of a wildfire
Rocky Mountain Insurance Information Assocation (RMIIA) and Hippo Insurance’s Wilson recommends taking the following steps to make sure you’re prepared if a wildfire does happen.
1. Review your homeowners insurance annually with your carrier to make sure you have proper dwelling and personal property coverage for your region.
2. Have an evacuation plan on where to meet and what time ahead of a disaster and communicate that with family members.
3. Have a small bag with medication, flashlight, and batteries for three days. Include copies of important documents like: birth certificates, identification cards, passports, car title, pet tags, and a thumb drive with documents.
4. Have temporary repair equipment available like a tarp.
5. Contact your homeowners insurance carrier if a natural disaster announcement is declared. If you have time, turn off gas at the meter and butane tank.
6. Prevent damage by creating a 30-foot defense around your home removing flammable material — like wood piles and propane tanks.
7. Replace flammable landscaping with fire resistive plants.
8. Prune branches and remove leaves from the roof, gutters, and shingles.
9. Have an emergency water supply.
10. Have fire-fighting tools — like garden hose, rake, ladder, shovel, and buckets of water — in an accessible place.
Emergency Go Bag from NYC Fire Dept
Claims as a result of a catastrophic event generally take longer and claimants can expect delays.Through FEMA, the federal government offers resources for disaster-stricken areas. You can find information about financial assistance on the USA government website.
There are also resources from relief organizations like the Red Cross.
What questions should I ask contractors
During a disaster, most homeowners insurance companies are scrambling for the same resources — contractors, electricians, and plumbers — which is why it is hard to get them on a service call.
Before hiring a contractor, contact your homeowners insurance company — they may have a list of approved contractors. Make sure that your company will pay for the contractor before signing a contract.
When calling for contractor estimates, ask how far out they are booking for repairs to get an idea of how long it will take before repairs begin.
Renters should address any building and structural damage with their landlord or property management company, because it’s the owner’s responsibility. Renters insurance covers your belongings in the rental unit.
Avoid cold callers and door-to-door scammers
It isn’t unusual for contractors working on a neighbor’s property to knock on other doors in the neighborhood to see if they need assistance. However, use good judgment and make sure they are actually hired by your neighbor. Ask for license and insurance credentials from any contractor going door-to-door.
Some scammers cold-call homeowners asking to switch homeowners insurance providers. If a cold caller is offering to pay for damage to your home if you switch providers or saying “take this deal today because it won’t be available tomorrow,” it’s probably a scam.
Ronda is an attorney, writer, and entrepreneur. She is a contributing writer for the Huffington Post. Originally from Chicago, she has lived in Los Angeles and New York. She loves to travel and is passionate about education equity, especially for first generation college students.