How to Make Sure You're Properly Insured Before the Next Wildfire
Recent wildfires have reshaped California's insurance landscape, and some Los Angeles homeowners are seeing their premiums skyrocket or are facing policy non-renewals.
Wildfire survivors have also gotten smaller insurance payouts than expected, and other Los Angeles County residents who were spared from the fires may not realize they're underinsured.
But there are proactive steps you can take now to make sure you're protected in the next blaze. Use this guide to learn how to prepare the proper documentation, choose the right amount of coverage, and know your rights.
Standard homeowners' policies usually cover wildfire damage, but in high-risk zones, coverage may be reduced, excluded, or even canceled.
'Your insurance company is not on your side or your good neighbor. They're a for-profit business,' Amy Bach, Executive Director of United Policyholders, warned homeowners.
Review these key components of your policy:
If your insurer has dropped your policy or won't renew, compare policies through a broker, shop regional carriers, or seek help through the FAIR Plan.
Many major insurers, including State Farm and Allstate, have limited or paused new policies in wildfire-prone regions, but you're not out of options.
Alternatives include:
Ask brokers about bundling options and ensure you're comparing policies based on replacement cost coverage, not just price.
Know Your Rights
Wildfire survivors in California are protected by a growing set of regulations and state laws enforced by the California Department of Insurance.
If you believe your insurer has acted unfairly, file an online complaint with the California Department of Insurance or call 1-800-927-4357.
'They owe to replace what you had with like kind and quality up to your policy limits,' Bach said. 'Stick for stick, board for boards, the exact same house that you had.'
California law requires insurance companies to offer discounts to homeowners who make their homes more fire-resistant. These discounts can range from 5% to 20%, depending on the insurer and the upgrades you make.
Don't wait for disaster to strike. Take these documentation steps today so that the evidence can speed up your claim and reduce disputes over what was lost.
'The insurance company is not always going to take your word for things,' Bach said. Documentation can 'make or break your case.'
Annual check-ins with your insurance agent allow your coverage to keep pace with your home's value and fire risk.
Bach also recommends checking your dwelling coverage with some simple math to be sure it's realistic for California's current costs.
'If you know how many square feet of living space is in your home, and you know what your current dwelling limit is on the house,' Bach said, 'you want to divide that dwelling limit by the amount of square footage and see how much money you would have available to you to pay a contractor.'
Bach said the amount can vary based on your home, but it should be somewhere between $300 and $400 a square foot at a minimum.
Other experts estimate that rebuilding after the wildfires can average $600 per square foot, factoring in tariffs, labor shortages and increased demand. Custom homes or properties built with high-end, fire-resistant materials can reach over $1,000 per square foot.
If you're not sure where to start, visit United Policyholders for more wildfire recovery and insurance resources. You can also try the insurance finder tool from the California Department of Insurance or read more insurance tips from CAL Fire.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
Cheapest Car Insurance in Georgia (Only $24 a Month!)
TAMPA, Fla., May 31, 2025 /PRNewswire/ -- Geico and State Farm tie for the cheapest car insurance rates in Georgia, according to a recent report published by The list of the top 10 cheapest car insurance providers and monthly rates is as follows: Geico – $24 AAA – $29 Erie – $37 State Farm – $43 Travelers – $44 Progressive – $46 American Family – $50 Farmers – $60 Allstate – $66 Liberty Mutual $106 In addition to offering lower prices, Geico is a top contender in Georgia due to its excellent financial rating and user-friendly mobile app. Car Insurance Requirements in Georgia Georgia residents are required to have a car insurance policy when driving on public roadways. The state has determined minimum requirements that all drivers must have. Bodily Injury Liability – $25,000 per person and $50,000 for multiple people per accident Property Damage Liability – $25,000 Uninsured/Underinsured Coverage – $25,000 per person and $50,000 for multiple people per accident Melanie Musson, a nationally recognized car insurance expert with urges readers to remember, "Georgia's minimum auto insurance requirements are insufficient for real-life risks. Additional liability coverage is often surprisingly affordable, so drivers should consider carrying higher limits." Finding Cheap Car Insurance in Georgia list of cheapest insurers provides a glimpse of average rates. Individual drivers face specific risks that affect their premium payments. Discounts provide another avenue of savings. Usage-based policies can result in a discount of up to 30%, depending on the company and the driver's habits. Other discounts include military, good student, bundling, and safe driver. Increasing deductibles is another way to save on premiums. Drivers can pay lower monthly premiums by raising their deductibles. Factors Impacting Premiums in Georgia Many factors that affect car insurance rates in Georgia are the same as in any other state, including: driver age, vehicle make and model, and driving history. The driver's address also impacts premiums. Drivers in urban areas tend to pay higher rates than drivers in rural parts of Georgia because the risk of being in an accident and filing a claim is higher in bigger cities. Find out more by reading entire report here: Cheap Car Insurance in Georgia for 2025 (Save With These 10 Companies). View original content to download multimedia: SOURCE
Yahoo
2 days ago
- Yahoo
New lawsuits accuse insurance companies of secret scheme to drive up prices for homeowners: 'Conspiracy and collusion'
Two lawsuits filed in Los Angeles say insurance companies colluded to force homeowners in high-risk wildfire areas onto California's FAIR insurance plans. According to the Associated Press, the lawsuits want to hold 25 major insurance companies responsible for the "illegal scheme" that has limited coverage for homeowners. The filings say their practices are "in violation of California's unfair competition and antitrust laws." The lawsuits allege that the insurance companies, including State Farm, worked together in 2023 to deny high-risk policies, making the FAIR Plan many homeowners' only option. The FAIR Plan is California's insurer of last resort. It's a program that gives high-risk homeowners access to insurance policies if they're denied through traditional avenues. These high-premium policies offer basic and limited coverage capped at $3 million. These policies are not enough to cover damage caused by severe disasters. And disaster struck in January, with extreme wildfires that destroyed almost 17,000 structures. Countless homeowners were left underinsured on the FAIR Plan. Many people can't get a traditional policy because the insurance companies don't want to be financially responsible for these natural disasters. Wildfires, droughts, floods, and other extreme weather events are becoming more frequent. By denying coverage in areas prone to climate instability, they're prioritizing profits. Furthermore, over $500 billion of U.S. insurance companies' investments are in the oil and gas industry, per the Center for International Environmental Law. Burning oil and gas creates harmful emissions that destabilize climate conditions. This leads to extreme weather events that destroy homes and leave people in financial ruin. Michael J. Bidart, who represents the homeowners, said in a statement, per AP: The insurance companies "have reaped the benefits of high premiums while depriving homeowners of coverage that they were ready, willing, and able to purchase to ensure that they could recover after a disaster like January's wildfires." Insurance companies are denying coverage to boost profits while making money off the very practices that are causing climate instability. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. Bankrate advises homeowners to save claims for major losses, check dwelling coverage, and be proactive about caring for their property. But people are hopeful these lawsuits will help reinstate fair premiums and policies. According to Bankrate, Stephen G. Larson, another lawyer representing the homeowners, said: "California's antitrust and unfair competition laws exist to address the very kind of conspiracy and collusion that the complaints allege the defendants engaged in." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
2 days ago
- Yahoo
LAPD reserve officer, brother charged with insurance fraud in Bentley crash
A reserve Los Angeles Police Department officer and his brother are facing felony charges after they allegedly committed insurance fraud with a Bentley convertible. Eric Benjamin Halem, 37, and his 32-year-old brother Jacob Halem were investigated by the California Department of Insurance, the agency said in a news release. The elder Halem, who serves as a reserve officer for the LAPD but was formerly a full-time officer, is accused of falsely reporting a crash involving a 2020 Bentley Continental GT, officials said. According to CDI officials, Benjamin Halem claimed his brother Jacob was the one driving the luxury vehicle when it was involved in a single-vehicle crash on Jan. 5, 2023. The Bentley, however, had been rented out through Ben Halem's company, Drive LA, which offers exotic car rentals and other services. Drive LA's website shows a Bentley Continental GTC available to be rented for $875 per day. It was during a rental period three days before the reported crash that the damage was actually done, CDI said, and it was the unnamed renter, not Jacob Halem, who was driving at the time. After the driver's insurance claim was denied by their company, Ben Halem 'allegedly filed a fraudulent claim with his insurance company on his personal policy, misrepresenting the accident details,' the release explained. 'He claimed that his brother, Jacob Halem, had been driving the vehicle at the time of the crash. To support their false claim, Eric and Jacob Halem submitted staged photographs of the damaged Bentley on a tow truck near the alleged accident location,' CDI said. Jacob Halem also 'provided a false statement to the insurance company investigator in an effort to corroborate his brother's fraudulent claim,' officials said. Their attempt was unsuccessful, however, as insurance adjusters used body-camera footage from Los Angeles County Sheriff's deputies responding to the real crash to demonstrate that the damage to the vehicle was done in the renter's crash on Jan. 2, 2023, not three days later. State officials said the fraud could have cost the insurance company more than $229,000. 'Insurance fraud impacts all Californians by driving up costs for consumers and businesses,' CDI said. 'If you suspect insurance fraud, report it to the California Department of Insurance at 800-927-4357 or visit Jail records show Ben Halem was arrested on March 27 and is free on $50,000 bond. Jacob Halem did not appear in a search of the records. The two men have been arraigned, CDI said, but no court information was available. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
