Flames and smoke from the Palisades Fire are engulfing a home in Topanga, California, as seen on January 9, 2025. (Photo by David Swanson for AFP via Getty Images).
Firefighters are in a race against time as they strive to bring the Southern California wildfires under control, which have now been raging for over a week. These fires have swept through the Greater Los Angeles area, scorching about 40,000 acres and destroying more than 12,300 structures, according to NBC News. Currently, around 88,000 residents in L.A. are under mandatory evacuation orders, with an additional 89,000 people in areas where they might need to evacuate swiftly.
The financial ramifications of these early January wildfires are staggering, with JPMorgan estimating insured losses could exceed $20 billion. Similarly, Wells Fargo predicts about $20 billion in insured losses, with economic damages potentially reaching $60 billion.
For those impacted by the fires, initiating the insurance claims process is crucial, as insurance broker Karl Susman, president of Susman Insurance Services in Los Angeles, advises. "File your claim as soon as possible," he notes. "You don’t need to have all the details ready."
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With a flood of claims, insurers may take longer to process applications, so acting quickly is wise.
If your primary residence has been affected by the fire, whether you’re a homeowner or renter, these are the seven steps experts recommend taking right away.
1. File the claim first, assess the damage later
You don’t have to wait until firefighters have completely extinguished the fire to start an insurance claim. Even if you’ve evacuated and don’t know your home’s current status, Susman suggests beginning the claims process.
Several factors may affect the insurer’s processing time, such as damage type, the claim’s complexity, and the number of insured losses. As Shannon Martin from Bankrate.com explains, renters have access to many of the same resources as property owners. "Generally, renters can follow the same procedure as homeowners," she says. "Ensure your safety, initiate your insurance claim, and inquire about advanced living expense payments."
2. Inquire about ‘loss of use’ coverage
It’s essential to ask your insurance provider about "loss of use" coverage under your home insurance policy, advises Jeremy Porter from First Street Foundation. This coverage helps secure temporary housing if you can’t currently live in your home. Rental policies may also offer this, known commonly as Coverage D, Porter notes.
3. Keep your receipts and document everything
Documentation is key if you have loss of use coverage. Keep every receipt for daily necessities like clothes, food, and temporary lodgings. Douglas Heller from the Consumer Federation of America advises maintaining records of all interactions with insurers. "Proper documentation as you navigate this challenging period will make your claims process smoother," he emphasizes.
4. Turn off your utilities
In the case of serious damage or the complete destruction of your home, contact your utility companies—electric, water, trash—to pause service. You might not need to pay for these if your residence is uninhabitable, Susman suggests.
5. Contact your auto insurer
If your vehicle is lost in the fire, check your auto insurance policy. As Susman explains, such losses are typically covered under comprehensive auto insurance policies, rather than home insurance, even if your car was in the driveway. "If you have comprehensive coverage, you’ll generally be covered for wildfire losses, minus the deductible," Bankrate’s Martin adds.
6. Don’t forget property taxes
Has your home been severely damaged or lost entirely? Visit your county assessor’s website and enter your address. If damages exceed $10,000, you might qualify to reduce or waive property taxes while reconstruction occurs, Susman explains. "This is something many overlook," he warns.
7. Tap local aid opportunities
If your coverage lapsed before the disaster or if you weren’t insured, be on the lookout for available aid, Susman recommends. "There’s likely to be assistance for the uninsured," he points out.
In a White House briefing, President Joe Biden announced a one-time payment of $770 from FEMA for wildfire victims. Nearly 6,000 survivors have registered, and $5.1 million has been disbursed, according to the White House. Impacted individuals can file for aid at DisasterAssistance.gov or call FEMA’s hotline at 1-800-621-3362.
The California Insurance Commission offers aid for navigating the process and supports uninsured victims at 1-800-927-4357.
FEMA is also stepping up to help those affected, offering temporary housing support through the Individuals and Households Program. Applications are available online or by calling FEMA directly.
In the community, local support groups and workshops could serve as additional resources. The California Insurance Commission will host an inaugural workshop on January 18-19 at Santa Monica College, with more sessions planned for January 25-26 at Pasadena College. Charities and nonprofits are actively mobilizing recovery efforts and accepting donations to aid communities in Pacific Palisades and surrounding regions.
