The devastating impact of the recent L.A. County wildfires has left communities reeling. Affected residents face gargantuan challenges in recovery and rebuilding in the face of unimaginable loss. If you’ve been affected or know someone who has, this comprehensive guide will help you or them navigate the key steps toward recovery.
Resources
- CalOES Statewide Wildfire Recovery Resources
- LA County Recovers
- Small Business Administration (SBA)
- Top Ten Tips for Wildfire Claimants
Initial Points of Contact
Your first calls should be to:
- Your insurance company: Initiate your claim as soon as possible since insurance providers often prioritize claims on a first-come basis.
- FEMA: Register at DisasterAssistance.gov or call 1-800-621-3362. Registration deadline: March 10, 2025.
- Your mortgage servicer: Contact them immediately to discuss your situation and explore forbearance options.
- Local disaster relief organizations: The Red Cross and local emergency management offices can provide immediate assistance with essential needs.
Immediate Steps
- Document the damage: Once local fire officials give clearance and you’re able to safely access your property, it’s time to record the situation with photos and videos. Take extensive footage of all damage, including close-ups and wide shots from multiple angles. This documentation will be crucial for insurance claims and disaster assistance applications.
- Find temporary housing if needed: If your home is uninhabitable, your insurance policy's Additional Living Expenses (ALE) coverage will help with these costs. Keep all receipts for temporary housing and other disaster-related expenses.
Mortgage Options
Mortgage forbearance programs temporarily pause or reduce your monthly payments to give you financial breathing room as you recover from a disaster. Program terms will differ based on your loan type. Government-backed Fannie Mae and Freddie Mac provide disaster forbearance for up to 12 months, with options for extensions based on your situation.
Fannie Mae and Freddie Mac also offer payment-deferral programs that can move missed payments to the end of your loan term. Some private lenders offer their own forbearance programs to affected homeowners with varying terms depending on the lender, so it’s important to have detailed discussions with your loan servicer.
How to Request Forbearance
- Contact your mortgage lender directly
- Explain that you've been affected by the California wildfires
- Ask about all available forbearance options.
- Get all agreements in writing, including:
- Length of forbearance period
- Payment terms during forbearance
- How missed payments will be handled afterward
- Impact on credit reporting
- Documentation required
Property Tax
If you’ve lost your home to wildfire, your tax assessment will be reduced, according to L.A. County Tax Assessor, Jeff Prang. However, the reduction doesn’t apply to the land the house was built on. Fire victims should register for Misfortune and Calamity Tax Relief to start the reassessment process.
Insurance Claims Process
At the time of writing, over $4 billion has been paid out by insurers to Southern California consumers through rapid payments. To provide transparency, the DOI has created the first-ever public claims tracker to monitor claim amounts and payments from both private insurers and the California FAIR Plan insurance. (The FAIR Plan offers basic coverage to homeowners in high-risk areas who are unable to get private insurance.)
Understanding Your Coverage
Standard homeowners insurance typically covers fire damage, but coverage limits and specific terms vary. If you’re a Wawanesa member, speak with one of our agents. They can go over your policy with you and let you know your coverage levels for:
- Dwelling Coverage: Rebuilding or repairing your home
- Personal Property Coverage: Replacing damaged belongings
- Additional Living Expenses: Temporary housing and related costs
- Other Structures Coverage: Damage to detached structures like garages or fences
Filing and Managing Claims
The California Department of Insurance (CDI) suggests trying to settle your claim directly with your insurance company before hiring a public adjuster or an attorney. If you work directly with your insurer, you still have the right to hire a public adjuster or lawyer if needed. Public adjusters are licensed by the CDI too and can be verified here by calling 800-967-9331.
Documentation
The perfect scenario at this point is for you to have access to a detailed inventory with photos of all your possessions. But if you didn’t get around to doing that beforehand, you may need to rely on memory. Create as detailed a list as possible, including purchase dates and prices of big-ticket items — ideally with model and serial numbers — and photos or videos of the damaged items where possible.
Be sure to keep receipts from any emergency repairs, and from all expenses related to temporary housing. You’ll work closely with the adjuster assigned to your claim so don’t be afraid to ask questions and get clarification on any points you’re not clear on as the process unfolds.
Debris Removal
Residents affected by wildfires in LA have two choices when it comes to removing debris on their property. You can take part in the government-run program or opt out and manage the debris removal on your own. Learn more here.
Rebuilding
As if dealing with a multi-faceted and complicated process involving builders and bureaucracy wasn’t complicated enough, homeowners need to be on the lookout for unethical workmen and outright scammers. These fly-by-night operators will show up eager to take advantage of displaced wildfire survivors with big promises offering their services at below-market rates.
If you need to repair or rebuild your home, be sure to choose a licensed contractor with deep knowledge of local building codes and be familiar with fire-resistant construction methods and materials.
Pro-Tip: It can be tempting to take the first bid offered — especially if the price sounds right — and everyone in your neighborhood is scrambling to get their project started at the same time. But it pays to get multiple bids and check references carefully.
Verify contractor licenses by checking the Contractors State License Board (CSLB) or by calling 800-321-2752. Review contracts carefully and if you’re asked to pay more than 10 percent of the quote upfront, consider that a red flag. Once the rebuilding work begins, monitor the process closely and keep detailed records of all expenses and any changes to the original plans.
Frequently Asked Questions
How will the recent wildfires impact insurance rates?
Not as much as you may think. The amount that an insurance company charges to account for potential catastrophes is generally based on a long-term assessment of that risk. This prevents a single year with large disaster claims from having an outsized impact on rates. For example, some companies will look at their catastrophe claims over a 20-year period and build an average annual amount into their rates. These long-term views of risks serve to stabilize insurance rates, so they don’t skyrocket after a large-scale disaster like the recent wildfires.
How will the recent wildfires impact property values?
It’s important to note that insurance coverage is based on the estimated amount to repair or rebuild a dwelling and not the market value of the property. The cost to repair or rebuild a home is based on the labor and materials of building contractors. The market value of a property is based on the supply and demand of housing in the real estate market.
The market value of a property also includes the land on which the dwelling is built, which is not covered by homeowners insurance. Due to the high demand for building contractors and materials after a wildfire, the cost to repair or rebuild dwellings is expected to increase during the reconstruction process.
How will the recent wildfires impact rental costs?
Rental costs are expected to rise as displaced homeowners seek temporary housing while their homes are being repaired or rebuilt. To the extent that the supply of rental properties can’t keep pace with the increased demand for rentals, rent costs will go up.
