Wildfires are terrorizing Los Angeles with more than 130,000 people evacuated, and it is possible the Palisades Fire will become the costliest fire on record. Our hearts go out to everyone affected by these devastating fires and sincere gratitude to the first responders! The journey to recover after a wildfire is a collective community effort and if you have recently been affected or know someone here are some steps to take or share:
Step 1: Reach out to your insurance company as soon as possible to discuss your coverage and start the claim process. Ask for a copy of the entire policy contract to review. Ask who you should talk to about cleaning up your home. Keep receipts for all additional expenses that you may incur such as lodging, repairs or other supplies. The CA Department of Insurance has a list of 10 tips for wildfire claimants here.
Step 2: Coordinate living arrangements. Additional living expenses (e.g. staying in a hotel) due to forced evacuation are typically covered for two weeks under a homeowner policy and there is no deductible. If your home is damaged due to the wildfire, then the period of coverage is much longer and in a state of emergency (as is the case with the current wildfires), your insurance company is required to immediately pay you a minimum of one-third of the estimated value of your personal belongings (also known as contents) and a minimum of four months’ worth of rent for the local area in which you live. You can also ask your insurance provider for cash advances for living expenses, such as renting furniture, and replacing personal property.
Step 3: Begin by making a detailed list of all items damaged or lost in the fire and take clear, comprehensive photos of the damage for records and insurance claims. Do not enter your damaged home or apartment unless the fire department says it is safe.
Step 4: Contact your local disaster relief service, such as the American Red Cross. Learn about the assistance available for housing, environmental protection, and more, including specific programs offered by FEMA, the State of California, and various NGOs.
Step 5: Contact your landlord or mortgage company to report the fire.
Step 6: Replace valuable documents and records that may have been destroyed or lost in the fire (i.e., social security cards, credit cards, medical records, auto registration, passports, birth certificates, deeds, estate plan documents, insurance policies, etc.).
Step 7: Handle burnt money as little as possible. Try to place each bill or part of a bill in plastic wrap to help preserve it. If money is only partly burnt — if half or more is still OK — you can take it to your regional Federal Reserve Bank to get it replaced. Ask your bank for the one nearest you. You can also send the burnt money to the Treasury.
Step 8: Check with an accountant or the IRS about special benefits for people recovering from fire loss.
Ask for help and do not try to do it all alone. Your BFSG Team is here for you!
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