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California is once again facing the devastating aftermath of wildfires, leaving thousands of residents to rebuild their homes and lives. In the wake of these disasters, navigating the insurance claims process is often overwhelming. In a recent FOX 11 News In Depth segment with host Hal Eisner, insurance expert Karl Susman offered a practical roadmap for homeowners, renters, and insurers during this long and difficult recovery process.
This blog breaks down Susman’s key advice and provides essential tips for California policyholders to ensure they are prepared and protected in the aftermath of a wildfire.
Step One: File Your Claim Immediately
It’s natural to feel paralyzed after losing your home or possessions in a wildfire, but Susman stresses that time is critical. The first and most important step is to contact your insurance company and file a claim.
“Get that claim filed and get that adjuster to start giving you money,” he emphasized.
California regulations require insurance companies to promptly issue payments for additional living expenses (ALE) such as temporary lodging, food, and essentials. Many survivors leave with nothing but the clothes on their backs, needing funds immediately for hotel rooms, meals, and even laptops to continue working.
Susman noted encouraging signs:
“Carriers have really stepped up in a way I only could have hoped they would. We’re seeing electronic fund transfers being made every day in the millions.”
Tip: When filing a claim, record the date and time of your call, note the name of the representative, and save every email or letter you receive. Documentation is your best ally throughout the process.
How to Access “Additional Living Expense” Payments
Under California’s Fair Claims Settlement Practices Regulations, insurance companies must advance payments for ALE as soon as coverage is confirmed. These funds cover:
- Hotel stays or short-term rentals
- Meals and groceries
- Essential clothing and personal care items
- Temporary office or equipment expenses for remote work
Homeowners should never wait until they’ve submitted full documentation of losses to receive these funds — the purpose of ALE is immediate relief. If your insurer delays, call your claims adjuster or state Department of Insurance hotline for assistance. You can also work with your insurance agent or broker to escalate the issue internally.
Keep Your Current Policy — Don’t Let It Lapse
While rebuilding, it’s tempting to shop around for better rates or coverage, but Susman’s warning is clear: this is not the time to switch insurers.
“Make sure your policy is on auto-pay. You don’t want something missed in the mail and have that policy lapse.”
A single missed payment could result in cancellation, and with California’s strained market, finding new coverage afterward is nearly impossible.
Pro tip:
- Set up automatic payments through your bank rather than relying solely on your insurer’s billing system.
- Regularly verify that your payment information is current — especially if you’ve been displaced or changed mailing addresses due to a fire.
Understanding California’s Temporary Non-Renewal Protection
Many wildfire survivors are shocked to receive non-renewal notices shortly after disaster strikes. While this feels like a cruel twist, the good news is that California law provides temporary protection.
Susman explained that the California Department of Insurance (CDI) regularly issues bulletins after major fires prohibiting insurers from canceling or non-renewing policies in affected ZIP codes. These moratoriums typically last one year but are not automatic — you must verify your eligibility.
How to Check:
- Visit insurance.ca.gov.
- Use the “Find My ZIP Code” tool under wildfire non-renewal protections.
If your property falls within a protected area, contact your insurer immediately and request reinstatement or removal of the non-renewal notice.
“You might still get that notice,” Susman cautioned. “So you have to go to the website, put in your address, and see if you’re in one of those protected areas.”
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If You’ve Been Non-Renewed, Act Fast
If your policy was canceled or non-renewed before the fire — and your home wasn’t damaged — you may still have options. Homeowners within 90 days of a declared disaster can often request policy reinstatement, provided no loss occurred during that window.
For those whose homes were destroyed without insurance, federal programs like FEMA and the Small Business Administration (SBA) offer grants and low-interest loans for rebuilding. While these programs can’t replace the full value of lost property, they provide crucial assistance for basic needs and reconstruction.
Watch Out for Fraud and Scams
Unfortunately, every disaster brings out bad actors. Scammers posing as contractors, adjusters, or “recovery consultants” prey on vulnerable homeowners desperate to rebuild.
Susman’s rule of thumb:
“If someone calls you out of the blue promising to file your claim or rebuild your home faster — hang up.”
Red flags to watch for:
- Demands for upfront payment or “processing fees.”
- Contractors who pressure you to sign over insurance checks.
- Unverified callers claiming to represent FEMA or your insurer.
Always verify identities through official websites or contact your insurance company directly. Remember: legitimate agencies and licensed adjusters will never demand payment before work begins.
Document Everything for Smoother Claims
To streamline your recovery, gather and preserve as much documentation as possible. This includes:
- Photos and videos of your property before and after damage
- Receipts for temporary expenses
- Communication logs with your insurer
- Copies of any inspection or adjuster reports
Organizing your records can significantly speed up settlement times and help avoid disputes over claim values.
Looking Ahead: Lessons in Preparedness
While it’s impossible to predict the next wildfire, Susman’s advice underscores one recurring truth: preparedness reduces loss.
Before the next crisis:
- Review your coverage limits. Make sure your policy’s dwelling and contents limits reflect today’s construction costs.
- Take a home inventory. Record all major possessions using photos or smartphone apps.
- Bundle coverages smartly. Coordinate homeowners, auto, and umbrella policies for better discounts and consistency.
- Back up documents digitally. Store key policy and ID records in the cloud.
- Home hardening — from ember-resistant vents to fire-resistant roofing — can also earn discounts and potentially make your property insurable when others are not.
Conclusion: Resilience Starts with Action
Recovering from wildfire destruction is a marathon, not a sprint. But as Karl Susman emphasized, the insurance process doesn’t have to add to your hardship — if you act quickly, stay informed, and protect your existing coverage.
From filing claims promptly to verifying your non-renewal status, these steps can make the difference between months of uncertainty and a faster, fairer recovery.
As California continues to battle one of the worst fire seasons in recent memory, knowledge truly is the best insurance.
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