The tragic fire that has laid waste to major portions of Los Angeles continues, but the insurance claim process is just beginning for locals who’ve lost their properties.
While working directly with the insurance company that issued the policy is always recommended, legal and insurance experts are stepping up on social media with some worthwhile advice for L.A. residents who’ve suffered losses in the fires over the past week.
A case in point is Neil Apanol, an attorney in Burbank, California, who took to LinkedIn on Jan. 13 to offer some direct advice to L.A. homeowners preparing to file claims with their insurers. Apanol has specialized in so-called bad faith business and real estate litigation for some 35 years.
Here’s a snapshot of his five top moves if residents have to file a wildfire-related insurance claim in the coming days and weeks.
1) Don’t hire a lawyer or adjuster to file your claim. “They will take between 10 and 33 percent, and most insurance companies are just paying out the full value of policies if you have a total loss,” Apanol wrote.
2) Make your insurance claim directly to your insurance company, rather than through your insurance agent or broker.
3) Communicate with your adjuster in writing (i.e., by email or text). If you have a telephone conversation, confirm it in writing.
4) Make an inventory of all personal property in your home. “You should be able to use credit card statements or Amazon account information to establish what you had and what it cost,” Apanol wrote. “If you have pictures or videos that show the inside of your home, you can use those to establish what you had.”
5) Keep a log of your contacts and attempted contacts with your insurance company. “Insurers have a limited amount of time to respond to claims and to pay claims once you establish the value of your claim,” he added.
Expect Processing Delays
If you already have active policies, know that insurers are obligated to honor the coverage in force at the time of a covered loss. “That said, claim processing might move more slowly if insurers are either overwhelmed by the volume of claims or are tightening standards to manage their financial exposure,” said Chad Cummings, chief executive officer at Cummings & Cummings Law in Naples, Florida.
If your homeowner’s policy was active during the fire, the insurer is generally bound by its contractual obligations to investigate and pay out on any covered loss.
“However, if your insurer has indicated non-renewal after this event, it becomes crucial to pursue your existing claim promptly and thoroughly while also exploring alternative coverage for the future—such as the California FAIR Plan or other surplus lines carriers if necessary,” Cummings said.
Insurers staring down higher costs may also scrutinize wildfire claims more carefully, requesting detailed inventories, receipts, and proofs of loss.
“This underscores the importance of maintaining complete documentation of your losses to withstand potential challenges during the claim process,” Cummins said.
L.A. homeowners should also expect delays or denials, which are more likely to arise if there is insufficient documentation or the carrier believes it can dispute parts of the claim. “An early and organized approach to filing can mitigate these issues … in conjunction with retaining an attorney at the outset,” Cummings added.