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Wildfire Insurance Lawyer
The recent wildfires have left Los Angeles residents reeling from devastating losses. Fire insurance should represent the financial lifeline for homeowners to rebuild their homes and lives after the catastrophic losses left by wildfires. Yet, when disaster strikes, insurance companies often fall short of their promises, leaving policyholders devastated and exceedingly vulnerable.
At Kantor & Kantor, we have spent over 20 years championing the rights of policyholders across California. With unwavering empathy and unmatched knowledge of California insurance, we hold insurance companies accountable when they prioritize profits over people. We are people helping people, and we look forward to helping you.
Why it is Important to Wait
Kantor & Kantor has successfully recovered hundreds of millions of dollars for insured individuals affected by the Northridge Earthquake and the devastating wildfires that have plagued California over the past several decades. Given this experience, one might expect our firm to actively encourage fire victims to hire us immediately. However, we strongly urge individuals not to retain legal counsel or public adjusters prematurely.
Engaging an attorney or public adjuster on a contingency basis too early in the process may ultimately result in unnecessary fees—potentially costing you hundreds of thousands of dollars. These are funds that should be allocated toward rebuilding or replacing your home. In many cases, insurance companies may issue checks for the full policy limits, particularly in situations where homeowners are underinsured. If that occurs, retaining a public adjuster or attorney—who typically charge between 10% and 25% of your benefits—provides no added value and only diminishes the financial resources available for your recovery.
Ethical practice demands a thorough evaluation, which includes an inspection of the damaged property and a careful review of the insurance company’s claim-handling process. Only after this assessment can a fair determination be made regarding the need for legal assistance. That said, there are circumstances where immediate legal intervention is warranted—for example, if an insurance company denies coverage and you believe the denial is unjustified.
What Is Fire Hazard Insurance?
Fire hazard insurance is a specific type of coverage that often needs to be purchased separately from standard homeowners’ insurance policies. This coverage offers financial protection against losses caused by fire, including:
- Structural Damage: Covers repair or rebuilding costs for your home.
- Personal Belongings: Covers replacement costs for damaged or destroyed items.
- Additional Living Expenses (ALE): Covers costs for temporary housing and relocation while your home is being repaired.
This insurance is crucial for rebuilding your life after a fire. Your home and peace of mind are too important to leave in the hands of an uncooperative insurer. Contact Kantor & Kantor now to learn how we can assist you with your fire insurance claim. Call us today at 818-886-2525 to get started.
How Does Fire Insurance Work?
Understand Your Policy
Every fire insurance policy is unique. It is essential to carefully review the terms and conditions to understand what is covered. Most policies include:
- Coverage for the home’s structure.
- Coverage for personal belongings.
- Additional living expenses during relocation.
The Claim Process
If a fire destroys your home, filing a homeowner’s insurance claim with your insurer is your next step. Here is how the process works:
- Step 1: Notify your insurance company immediately. Most insurers have 24/7 claims hotlines to assist during emergencies.
- Step 2: Secure a temporary place to live as soon as possible. In the wake of a large-scale disaster, short-term housing can become scarce quickly.
- Step 3: Keep track of all expenses related to your relocation. Many policies cap the amount reimbursed for ALE, so review your policy to understand the limits.
- Step 4: Gather evidence of the damage by taking photographs and videos. Create a detailed list of damaged or lost items, including receipts or other proof of ownership.
- Step 5: An insurance adjuster will visit your property to assess the extent of the damage and estimate repair or replacement costs.
- Step 6: Based on the adjuster’s report, your insurer will offer a settlement. This may include:
- Repair costs.
- The actual cash value of items.
- Replacement costs for destroyed belongings.
- Step 7: Decide whether to rebuild your home or relocate. Weigh the pros and cons carefully:
- Rebuilding: Hire a licensed and bonded contractor and never pay more than 10% upfront.
- Relocating: Consider the costs and potential long-term benefits of starting fresh in a new location.
What to Do Next
If you have filed a fire insurance claim, here is what you can do to protect your rights:
- Review your policy carefully to understand your coverage.
- Keep detailed records of all interactions with your insurance company.
- Consult an experienced fire insurance lawyer if your claim has been unfairly denied.
Insurers Underpaying or Denying Fire Claims
Many California property owners are currently set to fight their insurance companies to receive the coverage they believed they had. Unfortunately, underpayment and outright denial of fire claims are common practices that leave homeowners financially vulnerable when they need help the most.
The harsh reality of underinsurance only becomes clear after a catastrophic loss. While homeowners may assume their policy provides sufficient coverage, they often find it falls short of what is needed to rebuild or replace their property. Homeowners who persistently challenge their insurers can sometimes secure the coverage they thought they had, but many give up, overwhelmed by the process. Insurers exploit this fatigue, relying on policyholders to abandon their claims rather than pursuing fair compensation.
At Kantor & Kantor, we know these tactics inside and out. We fight to ensure every dollar you are owed is recovered.
Challenges with Partial Damage Claims
Fires that do not completely destroy a home create unique challenges for homeowners who desperately need the coverage they have paid for. Insurers often dispute or undervalue claims for hidden damage caused by smoke, ash, water, or mold. Homeowners must advocate for comprehensive inspections, as such damages may not be immediately visible. Air quality, ductwork, and structural integrity are common areas of dispute.
Wildfires often devastate landscaping, killing mature trees and contaminating soil. While most policies offer some coverage for landscaping replacement, the limits are frequently inadequate. Mature trees, for example, can be valued as high as $5,000, yet many policies cap coverage at $500 per tree. Additionally, soil contamination and plant damage may not become apparent for months, making it essential for policyholders to keep claims open and file supplemental claims as new issues arise.
Cash Advances and Depreciated Payouts
California law requires insurers to provide immediate cash advances for temporary living expenses and personal belongings. However, these payouts can fall short due to the depreciation of items. Long-term policyholders may also discover that their coverage has not kept pace with rising home values, leaving them unable to rebuild their homes to pre-disaster conditions.
While some policies include “extended replacement cost” clauses to cover market-rate rebuilding costs, these are not standard. Moreover, insurers have become increasingly aggressive in rejecting claims for partial damage, such as smoke or ash contamination, forcing homeowners to fight for fair compensation.
Understanding the California FAIR Plan
The California FAIR (Fair Access to Insurance Requirements) Plan serves as a last resort for property owners in high-risk areas who are unable to secure insurance from private companies. Designed to provide basic coverage for fire, lightning, internal explosion, and smoke damage, the FAIR Plan was established in 1968 during a period of urban unrest to ensure all residents could protect their properties. The plan has faced significant scrutiny due to its limitations, high costs, and operational challenges.
Over the years, increasing wildfire activity has led private insurers to reduce coverage or withdraw from high-risk areas altogether, forcing more residents to turn to the FAIR Plan. Currently, the FAIR Plan covers over 452,000 residential policies with $458 billion in total insurance exposure as of September 2024.
For many FAIR Plan policyholders, navigating the claims process has proven to be a difficult and often frustrating experience. According to multiple assessments by the California Department of Insurance, the plan has been criticized for:
- Low Settlement Offers: The FAIR Plan has been accused of making unreasonably low offers, leaving homeowners struggling to recover their losses.
- Opaque Operations: Unlike private insurers, the FAIR Plan provides limited transparency regarding its financial position, reserves, or reinsurance arrangements.
- Regulatory Violations: A 2022 Insurance Department examination found repeated violations of state insurance regulations, including failures to conduct thorough and objective investigations.
In July 2024, California’s Insurance Commissioner Ricardo Lara implemented a policy change allowing insurers participating in the FAIR Plan to recoup up to half of the assessed losses—up to $2 billion—by collecting fees from all FAIR Plan policyholders. This measure, part of the Sustainable Insurance Strategy, aims to stabilize the plan’s finances. However, it has shifted the financial burden of wildfire damage onto policyholders who already face high premiums and devastation from the loss of their homes and belongings.
What Homeowners Should Know
If you are a policyholder with the California FAIR Plan or are considering enrolling, it is essential to:
- Understand Coverage Limits: Be aware of the $3 million cap and consider supplemental insurance to cover potential gaps.
- Document Claims Thoroughly: Keep detailed records of damages and communications with the FAIR Plan to support your claim.
- Prepare for Challenges: Be ready to advocate for fair treatment and seek legal advice.
California Fire Insurance Tips YOU Need To Know
Wildfire, Landslides, and the Efficient Proximate Cause Doctrine
Wildfires can destroy vegetation and make soil less permeable, which makes it easier for even short bursts of heavy rain to cause mudslides. If your homeowner’s insurer has denied coverage for post-wildfire landslide damage under the earth movement exclusion in your policy, your claim may have been wrongfully denied.
On January 4, 2023, the California Department of Insurance Commissioner issued a Notice regarding insurance coverage for flood, mudslide, and earth movement claims related to recent wildfires. While the Commissioner recognized that many homeowner’s insurance policies exclude coverage for mudflow, debris flow, mudslide, landslide, and other similar events, these exclusions are not enforceable if the facts establish that wildfire (a covered peril) was the efficient proximate cause of the subsequent flooding, mudflow, debris flow, mudslide, landslide or other similar events.
What is Efficient Proximate Cause?
Efficient proximate cause is a legal term used in insurance law to determine which of multiple causes is responsible for an insured loss. It refers to the most dominant or effective cause of a loss that sets other causes in motion, leading to the loss event. The concept of efficient proximate cause is important in insurance because it determines which policy will cover the loss. If the efficient proximate cause of a loss is covered under an insurance policy, then the insurer is liable to pay for the entire loss, even if other excluded causes contributed to the loss.
In an insurance claim, if there are multiple causes that contribute to a loss, the efficient proximate cause is the one that sets in motion an unbroken chain of events leading directly to the loss, without any intervening causes that break the chain.
For example, if a house suffers structural damage due to debris flow and the debris flow was caused by wildfire damage, the efficient proximate cause of the loss would be considered the wildfire, and should be considered a covered loss. California courts have established that a prior wildfire can be the efficient proximate cause of a landslide. According to the California Court of Appeals in Howell v. State Farm Fire & Cas. Co. (1990) 218 Cal.App.3d 1446, wildfire can be the efficient proximate cause of a landslide. Thus, if an insured sustains damage from an excluded peril such as landslide or mudflow, as well as a covered peril such as wildfire, and the wildfire is the efficient proximate cause of the loss, then there is coverage for the damage.
How do I know if a recent wildfire is the efficient proximate cause of the landslide?
Several factors can determine whether a wildfire is the efficient proximate cause of a landslide. One of the key factors is whether the wildfire was the direct and uninterrupted cause of the landslide, or whether other intervening causes contributed to the loss. If the wildfire was the sole cause that set in motion an unbroken chain of events leading to the landslide, then it should be considered the efficient proximate cause of the loss. However, the type of earth movement (e.g., deep-rooted landslide versus shallow debris flow) may also be a factor. A deep-rooted landslide occurs when a large mass of soil and rock moves downslope along a well-defined sliding surface that extends to a significant depth. These types of landslides are typically slow-moving and can be triggered by a variety of factors, including heavy rainfall, seismic activity, and changes in groundwater levels.
A shallow debris flow is a more rapid type of landslide that involves the movement of loose soil, rock, and debris down a slope. These types of landslides are typically triggered by intense rainfall or snowmelt and are characterized by a high-water content, which allows the material to flow more easily. Shallow debris flows can be particularly destructive, as they can travel long distances and gain momentum as they pick up additional material along the way. Shallow debris flows are more likely to be caused by a prior wildfire than a deeper-rooted landslide.
Other factors that may be considered include the timing and location of the wildfire and landslide, as well as the condition of the land and the presence of vegetation before and after the wildfire. For example, if a wildfire burns away the vegetation that was holding the soil together and the subsequent heavy rains cause a landslide, the wildfire may be considered the efficient proximate cause of the landslide. Similarly, if a wildfire causes damage to the drainage system or other infrastructure that then contributes to a landslide, it may be considered the efficient proximate cause.
The California Insurance Commissioner’s Notice is clear that insurance companies should not deny mudslide, landslide, and debris flow claims before undertaking a diligent investigation regarding the cause of the loss and carefully considering the facts. However, the determination of efficient proximate cause can be a complex legal issue and may vary depending on the specific circumstances of each case. As such, you may wish to consult with a geotechnical engineer, and legal and insurance professionals to fully understand the coverage and liability implications of a loss event involving wildfires and landslides.
If you or someone you know is facing an issue with their homeowner’s insurance company denying this type of claim, the insurance lawyers at Kantor & Kantor have the expertise that could help. Our firm handles property damage claims on behalf of plaintiffs when their insurance company fails to cover the loss. Call our law firm today or complete our online form to see if you need our assistance with your situation.
How Private Insurance is Pushing Californians to FAIR Plans or No Fire Insurance at All
Major private insurers, like State Farm and Farmers Insurance, have increasingly opted to reduce their risk exposure, forcing many homeowners into expensive and uncertain alternatives like the FAIR Plan or, in many cases, leaving them uninsured.
State Farm and Farmers Insurance: The Exodus of Coverage
In 2024, State Farm non-renewed fire insurance policies for 1,626 customers in Pacific Palisades alone, citing rising catastrophe exposure, skyrocketing construction costs, and reinsurance challenges. Farmers Insurance followed suit, raising premiums to unaffordable levels for many residents. Some homeowners saw their annual premium quadruple — a financial catastrophe for most Californians. Additionally, stringent fireproofing requirements, like cutting down surrounding trees, left homeowners unable to qualify for new policies, even through the FAIR Plan.
Private insurers are not the victims of the California wildfire risks. By withdrawing from high-risk areas and simultaneously lobbying for looser rate regulations, these companies have prioritized profit margins over the safety and stability of California residents. While they claim rising costs as the primary driver for their retreat, many of these same companies continue to report significant profits in other states and lines of business.
State Farm, for example, has maintained a strong financial position nationwide, even as it sheds high-risk policies in California. Farmers Insurance, despite drastically hiking premiums, also reported strong earnings in the years leading up to its withdrawal from many wildfire-prone regions.
These companies appear to be using California’s wildfire crisis as a justification to cherry-pick profitable customers, leaving the rest to struggle with inadequate options.
How We Can Help
At Kantor & Kantor, we specialize in helping individuals and families navigate the complexities of insurance claims. If you have lost your home or property in a fire, we can:
- Policy Review and Interpretation: Insurance policies are often filled with technical jargon and fine print that can be difficult to decipher. We will thoroughly review your fire insurance policy to ensure you understand the extent of your coverage, including:
- Structural damage protection.
- Personal belongings reimbursement.
- Additional living expenses (ALE) coverage.
- Comprehensive Claim Preparation and Filing: The success of your claim depends on meticulous preparation. We assist you in gathering all necessary documentation, such as:
- Photographs and videos of the damage.
- Receipts and proof of ownership for personal belongings.
- Detailed records of additional expenses related to your relocation.
- Negotiation with Insurance Companies: Insurance companies often undervalue claims or deny coverage altogether, leaving policyholders struggling to rebuild their lives. Our attorneys are skilled negotiators who will engage with your insurance company on your behalf. We know the tactics insurers use to reduce payouts, and we will counter them with strong legal and factual arguments to ensure you receive a fair settlement.
- Appealing Denied or Underpaid Claims: If your claim has been denied or undervalued, we will not give up on your case. Our legal team specializes in challenging unfair decisions and pursuing appeals through:
- Formal appeals processes with the insurer.
- Mediation or arbitration if required.
- Litigation if necessary to secure the compensation you deserve.
- Advocating for Maximum Benefits: Beyond the standard payouts for property damage, we aim to secure maximum benefits for all covered losses, including hidden damages caused by smoke, ash, water, or mold. We also advocate for fair compensation for landscaping and soil restoration, which are often overlooked or undervalued by insurers.
A Commitment to Community and Compassion
At Kantor & Kantor, our work goes beyond legal representation—it is about standing by our neighbors during their most challenging times. For over 20 years, we have proudly served California families, ensuring they receive the support and compensation they need to rebuild their lives after devastating losses.
Our approach is deeply rooted in empathy and a genuine desire to help. We understand that a fire is not just a property loss; it is a life-altering event that disrupts your sense of security and stability. That is why we take the time to listen, understand your unique circumstances, and fight for what you are entitled to under your policy.
We hold insurance companies accountable because we have seen firsthand how unfair practices can devastate families. Our dedication stems not from seeking profit, but from a sincere commitment to making sure policyholders are treated with the respect and dignity they deserve.
Contact Kantor & Kantor Today
At Kantor & Kantor, we understand that recovering from a wildfire is emotionally and financially devastating. Our firm has been a pillar of support for California families for over two decades, and we are ready to fight for you.
Call us today at 818-886-2525 for a free consultation. Let us help you rebuild your life and secure the future you deserve. We are people helping people, and we look forward to helping you.
Attorney Glenn R. Kantor
Glenn Kantor is a founding partner of Kantor & Kantor LLP. As a young attorney, Glenn saw the injustice of wrongful insurance denials and created a law firm to represent individuals seeking to obtain their rightful benefits. Glenn is committed to ensure that clients receive the benefits they are entitled to under their insurance policies or group health plans. [Attorney Bio]
