The #1 Mistake Wildfire Victims Make When Dealing with Insurance Claims

The devastation of a wildfire is overwhelming—losing a home, possessions, and sense of security can be life-altering. When the flames are extinguished, another battle begins: dealing with insurance companies. Unfortunately, many wildfire victims make a critical mistake that can cost them thousands of dollars in compensation.

The #1 Mistake: Trusting the Insurance Company to Be on Your Side

After a wildfire, many homeowners assume their insurance company will act in their best interests, paying out claims fairly and quickly. This is the biggest mistake wildfire victims make. While insurers are supposed to provide financial protection, their primary goal is profit, not fairness.

Why Insurance Companies Don’t Have Your Best Interests at Heart

Insurance companies operate as for-profit businesses, meaning they are incentivized to minimize payouts. Even when your claim is valid, insurers may use tactics to reduce the amount they owe you. These tactics include:

• Delays in processing claims to frustrate homeowners into accepting lower settlements.

• Denying legitimate claims by citing technicalities or exclusions in your policy.

• Underestimating damages using their own adjusters, who work for the insurance company, not you.

• Pushing fast, lowball settlements before you realize the full extent of your losses.

If you trust your insurance provider without taking proactive steps to protect yourself, you could end up with far less compensation than you deserve.

How to Avoid This Mistake and Protect Your Claim

To ensure you receive the full amount you’re entitled to, follow these crucial steps:

1. Read Your Insurance Policy Carefully

Most people don’t fully understand their homeowners’ insurance policy until disaster strikes. After a wildfire, you must review your policy immediately to know:

• What’s covered and what’s excluded. Some policies exclude smoke damage or require special wildfire coverage.

• Your coverage limits. Ensure you’re claiming all applicable benefits (e.g., dwelling, personal property, loss of use).

• Time limits for filing claims. Missing a deadline can result in claim denial.

If your policy is unclear, consult an attorney to help you interpret it.

2. Document Everything

The more evidence you have, the stronger your claim will be. Here’s what you should do:

• Take photos and videos of all damaged areas before any repairs or cleanup.

• Create an inventory of lost or damaged items, including their value and purchase date.

• Save all receipts for temporary housing, food, and other wildfire-related expenses (these may be reimbursable under “loss of use” coverage).

• Keep all communication records with your insurer, including emails, letters, and call logs.

Documentation prevents insurance companies from disputing your claim or undervaluing your losses.

3. Don’t Accept the First Offer

Insurers often offer lowball settlements hoping that desperate homeowners will accept. If your first offer seems too low:

• Request a detailed explanation of how the insurer calculated the amount.

• Get your own estimates from independent contractors or public adjusters.

• Negotiate aggressively—insurance companies expect pushback.

Tip: If you’re unsure whether a settlement is fair, consult a lawyer before signing anything.

4. Hire a Public Adjuster or Attorney

If you’re facing delays, lowball offers, or a denied claim, you don’t have to fight alone.

• A public adjuster works for you, not the insurance company, and will accurately assess damages to negotiate a higher payout.

• An attorney can handle complex disputes, appeal denials, and even file a lawsuit if your insurer is acting in bad faith.

Wildfire victims who seek professional help often receive significantly higher settlements than those who handle claims alone.

5. Watch for Bad Faith Insurance Practices

Some insurers engage in bad faith tactics, which are illegal under California law. These include:

• Unreasonably delaying claims beyond the legal timeline.

• Denying claims without a valid reason.

• Misrepresenting policy terms to avoid paying.

• Failing to communicate or respond promptly.

If you suspect bad faith, seek legal help immediately. You may be entitled to additional compensation beyond your policy limits.

What to Do If Your Insurance Claim Is Denied or Underpaid

A denied or low settlement doesn’t mean you have to accept it. Here’s what you can do:

1. Request a written explanation from your insurer.

2. Gather additional evidence to support your claim.

3. File an appeal within the timeframe specified in your policy.

4. Contact an attorney to challenge wrongful denials.

Important: If your losses exceed your insurance limits, you may have grounds to sue Southern California Edison if their negligence contributed to the wildfire. Many wildfire victims are joining lawsuits to recover millions in damages beyond what insurance covers.

How Edison’s Negligence May Be to Blame for Wildfire Losses

In recent years, utility companies like Southern California Edison have been held responsible for sparking devastating wildfires. Investigations have found that aging infrastructure, poor maintenance, and failure to shut off power during dangerous conditions have led to fires that destroyed homes and lives.

Can You Sue Edison for Your Wildfire Losses?

Yes! If evidence shows that Edison’s equipment caused the wildfire, you may be eligible for compensation beyond your insurance payout, including:

• Full property damage costs.

• Emotional distress and pain and suffering.

• Relocation expenses.

• Loss of business income (if applicable).

Hundreds of wildfire victims have successfully sued utility companies and received settlements far exceeding what insurance provided.

Conclusion: Take Control of Your Recovery

The #1 mistake wildfire victims make is trusting their insurance company to do the right thing. Protect yourself by:

✅ Understanding your policy and your rights.

✅ Documenting all damages and losses.

✅ Rejecting lowball settlements and negotiating aggressively.

✅ Seeking professional help from adjusters and attorneys.

✅ Exploring legal action against negligent parties like Edison.

If you’ve suffered wildfire losses, don’t navigate this alone. Contact our expert legal team today for a free consultation to discuss your insurance claim and your rights to sue Edison for negligence.