What homeowners, renters need to do after a wildfire

By Finance News On Jan 16, 2025

Flames and smoke from the Palisades Fire surround a home (C) in the community of Topanga, California, on January 9, 2025.

David Swanson | Afp | Getty Images

Firefighters are still working to contain the record-breaking fires that have been raging for more than a week in Southern California.

The fires in the Greater Los Angeles area have burned through 40,000 acres, destroying more than 12,300 structures, according to NBC News. About 88,000 L.A. residents are under evacuation orders and another 89,000 are in evacuation warning zones, meaning they may need to leave at a moment’s notice.

The insured losses from the early January wildfires may cost over $20 billion, according to estimates published last week by JPMorgan. Wells Fargo similarly estimated about $20 billion worth of insured losses with an approximate $60 billion economic loss.

As many affected residents are trying to figure out what’s next, one of the first things to do is kickstart the insurance process, according to Karl Susman, insurance broker and president of Susman Insurance Services in Los Angeles.

“Get your claim filed as quickly as you can,” he said. “You don’t have to have all of the information on hand.”

Insurers are likely to take a longer time than usual to process claims because of the influx of applications, he said, so the sooner you get the ball rolling, the better.

If your primary residence has been affected by wildfire — whether you rent or own — experts advise taking these seven steps right away.

1. File the claim first, assess damage later

You don’t have to wait for firefighters to completely put out the fire to file an insurance claim.

Even if you’ve already evacuated and are unaware of the status of your home, you can still begin the claims process, Susman said.

Factors like the type and extent of the damage, the complexity of the claim and the volume of insured losses can affect the insurer’s processing time, experts say.

Renters have access to most of the same resources homeowners do, said Shannon Martin, a licensed insurance agent and analyst at Bankrate.com.

“For the most part, renters can follow the same process as homeowners,” she said. “You want to get yourself to safety, set up your insurance claim and then ask if you can get any additional living expenses in advance.”

2. Ask about ‘loss of use’ coverage

Ask your provider about “loss of use” coverage under your home insurance policy, said Jeremy Porter, head of climate implications research at First Street Foundation, an organization based in New York City that focuses on climate risk financial modeling.

The coverage would allow you to secure temporary housing or lodging while you’re out of your home, he said: “It’s there specifically to give people kind of a lifeline when they can’t move back into the…