Wildfire season is here: Prepare now to avoid regret later

For insurance pros, now is the time to help policyholders reduce preventable loss before a fire breaks out. By avoiding early missteps, the claims process stays focused, avoiding unnecessary delays and disputes that can drag on for months.

Know the policy before you need it

The most important step in making sure a property owner is ready for what could come is also the most overlooked. That is, making sure the policy on paper matches the property in real life. Many homeowners don't keep a full copy of their policy on hand. Even the most sophisticated rely on a declarations page without revisiting their coverage until after a loss. This is a textbook example of how one discovers they were underinsured and the consequences can be painful.

Pre-season coverage checks should hone in on what matters most after a wildfire strikes. Key homeowner coverages to review include rebuilding cost adequacy, ordinance or law, debris removal, smoke remediation, and loss of use/Additional Living Expense (ALE). For commercial property owners, terms surrounding business interruption deserve the same kind of attention, including waiting periods, triggers, and what documentation would be required.

Documentation is leverage

In the context of a wildfire, preparation and documentation go hand in hand. A claim is only as strong as what the policyholder will be able to prove in terms of their losses. In a scenario where a home is a total loss, paper records and even computer files are likely to have been destroyed in the fire too.

Having policyholders do a room-by-room video walkthrough of their property and its contents is key to truly being ready for a major loss. Photographs of major assets and belongings, including serial numbers, kept safely on cloud storage is the best approach. This kind of inventory might feel tedious, that is, until it's time to make a claim. It's the difference between a vague estimate and a claim supported item by item.

Another common blind spot to consider is displacement. Far too often, policyholders treat additional living expenses (ALE) like a simple, short-term inconvenience. Then, they discover halfway through the process that limits and time frames are turning out tighter than they had expected. For business owners, BI cash flow and extra expense decisions are a similar pain point.

Reduce preventable loss — and future claim friction

There are also things policyholders can do to make their property less inviting to ignition and spread. Things like clearing brush and clutter away from the home, keeping gutters and roofs clean, and sealing up small gaps where embers can sneak into a structure. You don't need to turn an insurance conversation into a fire-safety seminar, but it helps to prepare homeowners for holes in the armor that they don't expect.

The losses associated with wildfires aren't always due to a dramatic wall of flames. Much more often they're caused by smoke that's able to get inside, embers that find a weak point, and water or debris damage that follows. The more you limit what's able to get inside, the less there is to repair, replace and dispute in the claim.

After a loss, avoid the unforced errors

When there is fire damage, the most common missteps come from pure human instinct, the desire to clean up and move on. It's important that after an event, policyholders focus on safety and mitigation, but avoid erasing evidence! Tossing damaged items, cleaning up soot before it's been documented, or authorizing major repairs too soon can complicate the claim.

This is where language matters. After a loss, what policyholders say in the first calls and emails can shape the claim moving forward. People often guess about the cause or downplay damage because they're trying to be helpful. Those early statements, however, can create issues down the line as they can be recorded and repeated later on. The safer approach is to stick to the facts: What happened, when it happened, what you can see or smell, and what steps you took to prevent further damage.

Finally, many homeowners assume the first estimate they get is "the number." In reality, it's often just a first pass, especially during a busy wildfire season when adjusters are moving fast. If a policyholder signs off too quickly, important items can get missed. The settlement might happen fast, but it won't be fully reflective of what it will take to rebuild and replace what was lost. The claims that end up being paid correctly are usually those that stay organized. This is why retaining receipts, tracking expenses day by day, and maintaining a clear timeline of what happened and steps taken is so important.

Wildfire seasons are becoming more demanding on property owners and the systems that respond to them. The good news is that the most effective steps are practical: Know the policy, document the property before you need to, reduce avoidable risk, and avoid unforced errors in the first hours after a loss.

Andy Gurczak is the CEO and founder of AllCity Adjusting. Gurczak brings more than 20 years of combined insurance and construction experience to helping policyholders navigate and recover from property losses.

See also:

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• Berkshire utility wins Oregon fire appeal with billions at stake
• Trump targets State Farm over handling of LA wildfires