Insurance companies that deny or underpay valid fire, wildfire, and property damage claims could expose themselves to legal action by the insured. I can evaluate the insurance company’s decision in your case and assess whether you have options to challenge it.
California is no stranger to fires and wildfires, two specific types of property casualties which often lead to substantial claims. Because of the sheer volume of claimants and the amount of money at stake, not every policyholder receives what the policy actually provides. When a claim is unreasonably denied or underpaid in bad faith, the insured may have a legal case against the insurer.
If you have a property damage claim but you are encountering resistance from your insurer, let me take a look. I represent policyholders in fire, wildfire, and property claims, and I handle the parts of those claims that cause the most trouble: disputes over the cause of the damage, the scope and pricing of repair, smoke and ash, and additional living expenses.
What Insurance Covers for California Fire, Wildfire, and Property Damage Claims
California homeowners’ insurance policies commonly cover fire, wildfire, and other forms of property damage. However, the exact nature of coverage depends on the specific terms of your policy. Coverage is not automatic for every type of property damage or loss, and is subject to policy limits, deductibles, exclusions, and other conditions.
Depending on your specific policy and the circumstances involved in your fire, wildfire, or property damage, your claim could involve:
- Damage to the home and other structures
- Damage to your personal property and belongings
- Smoke and ash damage
- Debris removal
- Cleanup costs
- Repairs, where possible
- Living expenses if the home is uninhabitable
If you’ve experienced a loss, you should document it as soon as reasonably possible by way of pictures and videos. Take an inventory of what was damaged or destroyed and gather receipts and other records about the items’ value. Do what you can to prevent further damage, then contact your insurance company to report the loss and open a claim.
Common Disputes That Arise Over Fire, Wildfire, and Property Damage Claims
Claims become more complicated when the policyholder and the insurance company disagree. Disputes can range from whether the policy is current to the amount that the insurer should pay. Even if your loss is in fact covered, you may have problems with your insurer.
These are just a few of the most common issues that policyholders encounter after submitting a fire, wildfire, or other property damage claim:
- Claim denial: The insurance company could state that the policy has lapsed or expired, was not in effect when the damage occurred, or that the loss was excluded.
- Undervaluation or underpayment: Even if your insurer agrees to cover the loss, they may argue that it’s worth less money than you believe it is.
- Disagreement about the cause of damage: This could be a major hurdle if certain causes are covered and others are not.
- Repair or rebuilding costs: The insurer and contractors may not agree on the actual cost to repair or rebuild your house and other property structures.
- Additional living expenses: Your policy may cover these while your home remains uninhabitable, but the insurer may not agree to pay for specific expenses.
- Policy limits: How these apply to your exact claim could become a point of contention with the insurance company.
What to Do If Your Property Damage Claim Is Denied or Underpaid
If you receive news that the insurance company is either denying your claim or paying less than what you believe the full value should be, there are some important steps you can take to challenge the decision and try to recover the insurance benefits you deserve. I recommend that you do the following:
- Review the insurance company’s explanation and the relevant portions of your policy
- Organize all of your supporting evidence like pictures, videos, contractor estimates, and more
- Ask for clarification or reconsideration, or submit an appeal, in accordance with your policy
- Provide additional or new documentation, especially if the insurance company requests it
- Keep a record of all communications with the insurer and any expenses you incur during this time
- Reach out to me so I can review your claim and the facts surrounding it
How Long You Have to Act
Property insurance policies carry their own deadline to sue, separate from the ordinary statute of limitations, and it is shorter than most policyholders expect. Under the standard form in Insurance Code section 2071, that period runs twelve months from the inception of the loss, and California case law recognizes that it may be equitably tolled while the insurer investigates. For losses related to a declared state of emergency, the period is extended to no less than 24 months.
Importantly, your own policy controls, and terms vary. The date that matters in a particular claim depends on when the loss occurred and what happened during the claim.
None of this is a reason to rush a claim. It is a reason not to let an appeal, a reinspection, or a long negotiation quietly consume the time you have to enforce the policy in court. If you are already some way into a dispute, that is worth checking early.
Defense-trained. Policyholder-focused.
I founded Abramyan Law, P.C. to help policyholders recover what they are fairly owed under their insurance policies. I’m ready to assist with your claim today. I meet with clients in English, Armenian, and Russian.