The ongoing wildfires in Los Angeles continue to devastate homes and livelihoods. For most people, a home is not only their most valuable asset but also the center of their memories and family life. When your home or business is damaged—or even destroyed—by fire, the loss often goes beyond monetary value. However, depending on your insurance policy, you are entitled to compensation. Unfortunately, insurance companies may not value your loss the same way you do and may sometimes disregard your rights as a policyholder.
Fire Damage: A Real Threat in California and Nationwide
According to the National Fire Protection Association (NFPA), a residential fire occurs in the U.S. every 86 seconds on average. Each year, approximately 350,000 structures are destroyed by fire, resulting in over 12,000 injuries, more than 2,500 deaths, and $6.7 billion in damages. While cooking and smoking are the primary causes of fires, other potential fire hazards include:
• Malfunctioning heating equipment
• Electrical short circuits
• Gas appliance failures
• Gas leaks
• Faulty smoke alarms
• Wildfires
California wildfires, such as the devastating ones in recent years, highlight the profound threat fires pose. In 2018 alone, California wildfires caused nearly $3 billion in damages. The Camp Fire, for instance, destroyed tens of thousands of buildings, including homes and businesses, and nearly wiped out an entire town. Southern California, including Los Angeles and Ventura counties, also suffered severe damage.
Insurance Coverage for Fire Losses
Paul P. Cheng, Esq., a renowned trial attorney in Southern California, emphasizes that policyholders are entitled to compensation for:
• Smoke damage
• Water damage caused by firefighting efforts
• Loss of personal property
• Damage to building structures
• Temporary housing arrangements
• Business interruption and related losses
The impact of fire on businesses can be even more severe than on homes. Business owners may lose their livelihoods and face challenges in rebuilding or restarting due to customer loss or other factors.
What to Do When Insurance Companies Act in Bad Faith
Paul P. Cheng, Esq. explains that when insurance companies try to avoid paying your claims, they may exhibit bad faith practices. Proving bad faith does not require showing malicious intent from insurance executives—only that the insurer acted unreasonably. Examples of bad faith practices include:
• Claim denial: Using technicalities to reject claims. Experienced attorneys can help you fight for the compensation you deserve.
• Coverage denial: Exploiting policy complexities to claim your losses aren’t covered.
• Lowball offers: Providing unreasonably low settlement amounts.
• Payment delays: Even if a claim is eventually paid, unnecessary delays can constitute bad faith.
• Policy cancellation: Canceling your policy retroactively due to alleged incomplete information during application to avoid paying claims.
Legal Recourse Against Negligent Parties
In addition to insurance claims, survivors may pursue lawsuits against negligent parties. Wildfires are often caused or worsened by human error, including utility companies failing to maintain power lines or implement safety measures. Holding these entities accountable can provide additional financial relief for survivors.
Legal Support for All Insurance Disputes
Whether it’s fire, earthquake, flood, wind damage, or other property losses, skilled attorneys can help resolve insurance disputes or bad faith claims. Misconduct in the insurance industry should not prevent you from receiving the compensation you’re entitled to. If you or your business has experienced fire-related losses and are facing insurance challenges, contact a legal professional dedicated to protecting your rights.
How to Contact Us
For questions about California law or assistance with insurance disputes, connect with our experienced legal team. Fill out our online form, call us at 888-381-4244, or email our legal team at info@pprclaw.com.