80,000 have evacuated in California amid wildfires!

Published Date: 01/09/2025

When 80,000 People Evacuate: How to Navigate Insurance During California’s Wildfires

When you wake up to red skies, air thick with smoke, and sirens echoing through canyons, the first instinct is survival. But once your family is safe and the flames begin to fade, another question emerges: Will insurance cover what’s left?

As California once again faces multiple wildfires — including the Palisades, Hearst, East Eaton, and Woodley Fires — roughly 80,000 residents have been forced to evacuate across Southern California. Entire neighborhoods sit under mandatory evacuation orders, highways are closed, and even Universal Studios Hollywood has shut down due to fire danger.

On Insurance Hour, industry expert Karl Susman, president of Susman Insurance Services, joined live from the evacuation zone to provide clarity for homeowners, renters, and business owners dealing with the chaos. His insights reveal what policyholders can — and can’t — do during an active wildfire and how to file claims effectively once the danger passes.

1. Fire Coverage: The Foundation of Every Homeowners Policy

Amid the smoke and panic, one reassuring truth stands out: fire is covered under virtually every homeowners, renters, or condo policy in the United States.

“The primary peril, literally the main part of the homeowners policy, is fire coverage,” Susman explained. “It would be very unusual to have a homeowners insurance or renters policy that doesn’t cover fire.”

That means if your home, personal belongings, or even a detached structure (like a garage or shed) is damaged by flames or smoke, your policy should respond. However, the limits of your policy — how much it will pay to rebuild, repair, or replace — depend entirely on what’s listed in your declarations page.

Homeowners should review their Coverage A (dwelling), Coverage C (personal property), and Coverage D (loss of use) limits annually to ensure they reflect current rebuilding costs and living expenses.

2. Moratoriums: Why You Can’t Buy or Change Coverage During a Fire

As wildfires spread, insurance companies issue “moratoriums” — temporary freezes on writing new policies or altering existing ones in affected ZIP codes.

“When there’s an active event like this,” Susman explained, “insurance companies will put out an immediate bulletin that says you cannot make changes to your policy while there is an active wildfire in progress.”

This means that once a fire is burning nearby, you cannot increase coverage, add endorsements, or purchase a new policy until the moratorium lifts — often days or weeks later.

If you realize during a fire that your coverage is insufficient, it’s unfortunately too late to make changes. The key takeaway? Review and update your policy before wildfire season begins.

Proactive preparation is the only way to avoid being locked out of protection when disaster strikes.

3. Filing a Claim: Timing Is Everything

After evacuation or suspected damage, your next step is to file a claim immediately. Catastrophic events create a surge of claims that insurers process in order of submission.

“There’s no harm in filing a claim,” said Susman. “The carriers are expecting them, and they’ll be putting you in a queue for your claim. So the sooner you file, the better.”

Even if you’re unsure whether your home is damaged, file anyway — especially for smoke exposure, which can be extensive and is often covered. Many homeowners overlook smoke-related losses, only to face long-term issues like odor, soot buildup, and HVAC contamination later.

Once your claim is submitted, you’ll receive a claim number — your reference for all communications with the insurer. Keep it handy and note the names of any adjusters or representatives assigned to your case.

4. What to Do If You Don’t Have Your Policy Documents

Evacuations happen fast. If you fled without paperwork or login access, you’re not out of options.

“If you were lucky enough to grab your documents, great,” Susman said. “But if not, that’s what agents and brokers are here for — to help when you can’t access what you need.”

Call your insurance agent or broker with basic details: your name, address, and insurance company (if known). They can locate your policy, start your claim, and serve as an intermediary with the carrier.

Independent agents are especially valuable in disaster scenarios — they can contact multiple carriers on your behalf, track claim progress, and help you secure temporary coverage afterward if your insurer withdraws.

5. Smoke, Ash, and Heat: Understanding Partial Damage

You don’t need a total loss to file a valid claim. Partial damage from smoke, ash, or heat radiation is still covered.

Wildfire smoke can infiltrate ventilation systems, electronics, and textiles, leading to long-term contamination. Policies often cover professional smoke remediation, even if the structure didn’t burn.

Document everything:

• Take photos or videos once it’s safe to return.
• Record odors or discoloration on walls, ceilings, and fabrics.
• Don’t clean before adjusters inspect the property — visible evidence matters.

If you’ve already evacuated, note the date and time you left and any visible signs of fire nearby. This context helps insurers confirm exposure timelines.

6. When Cars Are Damaged in a Wildfire

It’s not just homes at risk. Vehicles left behind during evacuations can be destroyed by flames, falling debris, or emergency activity.

“Even if your car is burned in a wildfire, it’s covered under your auto policy,” said Susman. “You’re looking for comprehensive coverage — that’s what applies here.”

Comprehensive auto coverage protects against:

• Fire and smoke
• Falling trees or debris
• Emergency vehicle damage (such as bulldozers clearing roads)
• Theft or vandalism during evacuations

If your vehicle was moved or damaged during fire response efforts, document the circumstances and contact your auto insurer separately from your homeowners carrier. Each claim is handled independently.

7. Business Interruption and Commercial Losses

For business owners affected by evacuation or fire damage, commercial property policies may include Business Interruption coverage — reimbursing lost income if operations are halted due to fire, smoke, or evacuation orders.

However, activation depends on policy language. Some require direct physical damage to the insured property, while others extend coverage to civil authority shutdowns, such as mandatory evacuation zones.

Small business owners should:

• Contact their broker immediately after closure.
• Keep detailed records of lost revenue and expenses during downtime.
• Retain all communication related to evacuation or official shutdowns.

As Susman emphasized, documentation is your lifeline. Insurers can’t pay for losses they can’t verify.

8. Lessons From the Palisades: Preparation Is Protection

The Palisades Fire — with nearly 3,000 acres burned and multiple neighboring blazes — has become a case study in both human resilience and the power of preparation.

Homeowners who had updated coverage, maintained defensible space, and documented their possessions are now navigating recovery with far less stress.

Those who didn’t are learning the hard way how quickly uncertainty can compound during a crisis.

“You can’t control the weather or the wind,” Susman said, “but you can control how prepared you are when it happens.”

9. What You Can Do Today

Even if you’re outside the current fire zones, take this event as a warning to review your coverage now.

Here’s a quick wildfire preparedness checklist:

✅ Review Coverage Limits: Ensure your dwelling, personal property, and loss-of-use limits reflect true rebuilding and living costs.
✅ Harden Your Home: Clear vegetation, install ember-resistant vents, and maintain defensible space.
✅ Update Inventory: Photograph rooms, store receipts, and upload documentation to the cloud.
✅ Bundle Policies: Combine home, auto, and umbrella coverage for potential discounts.
✅ Know Your Evacuation Plan: Keep digital copies of important documents and contact info.

Taking these steps now means less panic and fewer financial surprises when the next red-flag warning hits.

10. The Bigger Picture: Insurance in a Warming World

The fires devastating Los Angeles, Ventura, and Santa Barbara counties are not isolated events — they are part of a larger systemic shift. Warmer temperatures, prolonged droughts, and high winds have turned fire season into a year-round reality.

Insurers are recalculating risk, regulators are reconsidering decades-old laws like Proposition 103, and homeowners are bearing the brunt of the transition.

While California’s Sustainable Insurance Strategy — introduced in late 2024 — promises long-term stability through modern catastrophe modeling and fairer pricing, the short-term remains volatile.

For now, the most powerful tools Californians have are knowledge, documentation, and proactive planning.

Final Thoughts: Out of the Ashes, A Path Forward

The sight of 80,000 people evacuating their homes is a stark reminder that disaster can unfold faster than paperwork. But even in the midst of uncertainty, insurance remains a lifeline — if you know how to use it.

Whether you’re a homeowner, renter, or small business owner, the same rule applies: act early, document everything, and work closely with your agent or broker.

Wildfires may be an unavoidable part of life in California, but financial devastation doesn’t have to be. With the right preparation and understanding, policyholders can face the flames — and recover from them — with confidence.