Wildfires can destroy homes, businesses, and communities in a few hours. After such a disaster, insurance should help people rebuild and recover. But many claims get denied, often for reasons people don’t expect. Knowing why this happens can save you time, money, and stress.
In California, wildfires are becoming more frequent and intense. In 2023 alone, wildfires burned over 300,000 acres across the state. Many people who lost their homes or property filed claims, but some didn’t receive the help they hoped for. If you face problems with your claim, a Wildfire attorney in California may help you understand your rights and what to do next.
Let’s take a closer look at the common reasons why wildfire claims get denied.
1. Lack of Proper Documentation
Insurance companies need proof. If you can’t show what was lost, they may not pay. Many people forget to take photos or save receipts before disaster strikes. Without these records, it’s hard to prove the value of your property or belongings.
Keeping a list of items and photos in a safe place—like cloud storage—can make a big difference.
2. Missed Filing Deadlines
Time matters. Most insurance companies give a deadline for filing claims. If you wait too long, even a valid claim can be denied. After a wildfire, contact your insurance provider when it is safe. Filing quickly shows that you are serious and helps get the process started.
3. Coverage Exclusions in Your Policy
Not all policies cover every type of damage. Some may leave out wildfire damage, especially in high-risk zones. Others might not include smoke damage or damage to things like fences or sheds.
It’s essential to read your policy closely. If you’re unsure what’s covered, ask your provider before it’s too late.
4. Underinsurance or Lapsed Coverage
If your insurance doesn’t cover the full value of your property, the company might not pay for all the damage. This is called being underinsured. Also, your claim may be denied if you missed a payment and your policy was canceled.
Check your coverage limits often. Make sure they match your home’s current value and that your payments are up to date.
5. Disputes Over Cause of Damage
Sometimes, the insurance company may say the wildfire wasn’t the cause of the damage. This is common when fire and wind damage a house or only part of it burns.
Getting a fire report or expert inspection can help show what caused the damage, making it harder for the insurer to say no.
6. Suspicion of Fraud
Insurance fraud is a serious issue. If the company thinks you added fake items to your list or gave false details, they may deny your claim.
Changes to your policy right before the fire or missing items from your inventory can raise red flags. Always be honest and provide clear facts to avoid problems.
7. Delayed Notification to the Insurance Company
Most policies require “prompt notice” after a loss. If you wait weeks or months to tell your insurer, they may say you didn’t follow the rules. A short call or email right after the fire helps protect your claim.
Even if you don’t have all the details, starting the process early is better than waiting.
8. Inadequate Mitigation Efforts
If the insurance company believes you didn’t do enough to protect your home, they may reduce or deny your claim. This could include not clearing brush, storing flammable items too close to your house, or ignoring fire safety tips.
Some policies require you to take “reasonable steps” to prevent loss. Doing so shows you acted responsibly.
9. Disputes Over the Value of Damages
Your house may need $200,000 in repairs, but the insurance company may offer much less. These disagreements are common.
Having repair estimates or working with a public adjuster can help support your side. You don’t have to accept the first number your insurer gives.
The Final Verdict! Wildfire claims can be denied for many reasons, but most can be avoided with the proper steps. Keep good records, know your policy, and act quickly after a fire. By staying prepared, you can give your claim the best chance of success.