After A Wildfire: Your Options for Compensation

In the ten years between 2009 and 2019, Californians lost almost $1 billion every year in wildfire property damage. Then, the fires seemed to get worse.

Over 12 wildfires have spread across the state of California in the first month of 2025, and experts believe the ones in LA County specifically could be some of the most expensive fires in history. Experts project the collective losses to land somewhere between $135 and $150 billion. 

If you’ve recently felt the impact of the California wildfires firsthand, then it’s important for you to fully understand your options for financial recovery. You’ll want to thoroughly research every avenue of recourse, including potentially collecting non-economic damages from a negligent party through a lawsuit. In general, you won’t be able to collect these types of losses from an insurance claim.

Here at Kermani LLP, our team of California wildfire attorneys can help you identify your options and pursue the compensation you need to move forward from this disaster.

California Laws Protecting Wildfire Victims

Several laws in California protect the rights of wildfire victims. Property damage claims are typically handled under insurance policies. California has several laws that protect wildfire victims from being unfairly denied coverage. Personal injury laws also allow for legal compensation for wildfire victims through lawsuits against a negligent party.

A recent order executed by Insurance Commissioner Ricardo Lara requires insurance agencies to make advance payments on California wildfire insurance claims during these recent fires. This order is designed to protect victims and help them speedily recover.

Another recent law passed by Governor Newsom protects wildfire victims from unsolicited cash offers and predatory land speculator practices. If you’ve been contacted by a real estate agency seeking to take advantage of your tragedy, then reach out to a lawyer about your options.

Steps to Follow After Wildfire Damage in California

Below, we’ll go over the main steps you should take after sustaining wildfire damage in a California fire to preserve your rights and start rebuilding. 

Ensure Your Safety

While the threat of the immediate fire may have passed, it’s important to remain cautious about sifting through debris, which could still be dangerous. The area could also still be impacted by smoke.

Only return to your home after it’s safe to do so, and local authorities have cleared any evacuation orders. Once you’ve done so, you can get started with contacting your insurer, documenting your losses, starting a claim, and contacting a California personal injury lawyer if you need additional assistance.

Contact Your Insurance Provider Immediately

Most standard fire insurance policies require policyholders to alert the company about any damage as soon as possible after the incident occurs. You should contact your insurance provider immediately as soon as you realize that your property is damaged, but you need to handle this communication delicately.

When you reach out to your insurer, let them know that a fire has damaged your home, but don’t go into details or specifics about the extent of the damage until an investigation has occurred. The last thing you want to do is compromise your future claim by making a comment like, “It’s not too bad”. In general, your conversations with your insurer will be recorded, so anything you say could potentially be used against you later if you file a claim.

If you’re unsure about handling this initial call, then you can consult with a local attorney in your area. They can provide you with solid legal advice to help you navigate the call and preserve your rights.

Document Losses: Photos, Videos, and Inventory Tips

Next, you need to start documenting your losses. You’ll want to gather up as much evidence as possible that proves the extent of your property loss and the costs you’ve incurred as a result of the fire.

Take photographs of your property and the damage. If possible, then consider recording a video that can fully detail the scene. Take detailed notes about any valuables that you remember being in the home prior to the fire.

From there, you’ll want to see if you can recover any receipts, warranties, or proof of value on the items or properties you’ve lost.

You also want to save any receipts that document your spending that arises due to the loss of your home. Additional living expenses (ALE) is a form of insurance coverage that reimburses you for those extra costs. If you had that type of coverage, then you could be eligible to file for compensation for those losses. If you and your family are also experiencing pain and suffering as a result of the fire, then you’ll want to document that as best as possible. If you attend therapy or need to seek counseling, then be sure to save any copies of those bills.

File a Claim and Understanding Your Policy Coverage

Next, you’ll want to research your options when it comes to filing a claim. Depending on your coverage levels, you could potentially be able to file multiple insurance claims.

For instance, if your car was totaled or destroyed and you have car insurance, then your policy might cover the wildfire damage to your car. If you owned your home and had homeowner’s insurance, then you can file a claim through that policy.

To better understand your options, it might be best to look over and review all your insurance policies. If you need help understanding the terminology and your options, then a wildfire attorney can help you go over everything.

Secure Temporary Living Arrangements and Financial Aid

In the immediate aftermath of the fire, you’ll need to secure temporary living arrangements. If your home was a total loss, then an insurance claim can help you receive around four months’ worth of temporary rent support. Depending on your household size and income level, you may qualify for temporary housing assistance or other forms of financial help while you determine your future plans. FEMA disaster assistance is always available to those in need. You can contact the FEMA hotline at 1-800-621-3362 to learn more about their relief services in detail. You can also contact a local California wildfire attorney for help getting connected with local resources and groups that are willing to help.

Plan Your Rebuilding Journey

Once your temporary needs are secure, you can start planning your rebuilding journey. The home rebuilding process will likely be slow, especially as the entire community is likely in a similar situation to yours. First, you will need to register to have your property taxes reevaluated. From there, you should start receiving payments from your insurance company. You’ll want to fully understand the risks of rebuilding your home in the same area since the wildfire risk is likely to remain high in the coming years.

Finances will likely be a huge hurdle to cope with during the rebuilding process. One recent development made possible by Insurance Commissioner Lara could speed up your recovery process. In January 2025, the Commissioner ordered insurance companies to make advance payments on claims to help facilitate a faster recovery for wildfire survivors in the state. These payments will apply to survivors of the Palisades, Eaton, and other fires. 

Types of Losses You Can Claim After a Wildfire

California wildfire claims allow victims to pursue compensation for common losses like property damage, additional evacuation and living expenses, medical bills, and sometimes emotional distress. Depending on the terms of the insurance policy or the circumstances of the wildfire lawsuit, victims might also be able to claim business interruption compensation, compensation for agricultural losses due to wildfires, or other forms of relief.

Can You Claim Non-Economic Damages for Wildfire Losses?

In short, it depends on the specific circumstances of your wildfire and the losses associated with it. The longer answer is that you typically cannot claim non-economic damages through insurance settlements for wildfires, but you can seek out this type of compensation in California wildfire lawsuits.

The standard homeowners’ insurance policy typically won’t cover emotional distress or other forms of non-economic damages when you file a California wildfire claim.

Pain and suffering claims, however, can be sought out if there is a negligent party that you can pursue a lawsuit against. Currently, multiple lawsuits have already been filed against several different parties, including the utility company Southern California Edison. Plaintiffs allege that the utility company’s failure to properly maintain and secure their power lines during the extreme fire conditions and powerful winds caused the Eaton Fire to escalate.

Further evidence of these claims comes in the form of a report filed with the California Public Utilities Commission, which states that a downed conductor had been discovered at the site where the Hurst Fire began.

Proving Non-Economic Damages in a Wildfire Claim

One of the most difficult aspects of filing for non-economic damages is proving your losses. By their very nature, non-economic damages are subjective and difficult to quantify. You won’t be able to produce bills, receipts, or a diagnosis to truly prove the extent or severity of your losses, but you can use this type of proof as contributory evidence that details the extent and severity of your losses.

On top of the hard evidence that shows your economic losses, you’ll want to produce a personal testimony that details how the losses have impacted you. In some cases, you may be able to hire an expert witness who can further testify about the extent of your losses.

Challenges in Quantifying Non-Economic Losses

Once you are able to prove your non-economic losses, you’ll face yet another challenge in determining the value of those losses. For instance, how can you put a price tag on the loss of enjoyment of life after losing your family’s generational home?

Considering this, California courtrooms typically utilize the “multiplier method” to calculate the estimated value of non-economic losses in a personal injury claim. Here’s how the method works. First, you’ll want to add up the total value of all your economic losses. This should include things like the value of your property loss, the costs of any medical treatment you received, bills associated with therapy or counseling, evacuation expenses, and any other financial costs you’ve incurred as a result of the wildfire.

Next, the court will analyze the overall extent of your losses and the severity of your case. Based on all the information and proof you present, they’ll assign a number between one and five to your non-economic damages.

Finally, the court will multiply your total economic losses by that multiplier number to come up with an overall value of those non-economic losses. As an easy example, if your economic losses total $20,000 and the court assigns a multiplier of two, then your total non-economic losses will be valued at $40,000 ($20,000 x 2 = $40,000)

The Role of Legal Support in Non-Economic Damage Claims

Everything about filing a California wildfire claim is complicated, from pursuing what you deserve from your insurance company to seeking compensation for non-economic losses. It’s important for you to have a solid understanding of California personal injury laws if you want to pursue non-economic losses, so it’s typically in your best interests to consider looking for legal support in the form of a California wildfire attorney.

The right attorney will help you identify your options, review your insurance policies, consider potentially negligent parties, collect evidence to strengthen your claim, file the right paperwork, negotiate with the other party, and aggressively advocate for you throughout the whole process.

Steps to Take to File a Non-Economic Damages Claim

Are you considering filing a lawsuit to pursue non-economic damages after a wildfire? If so, then it’s in your best interests to get in touch with California wildfire injury attorneys for legal advice that’s personalized to your unique circumstances.

That said, it’s generally best to first review all your potential options for recovery. You’ll want to review any existing insurance policies you have and consider all the potential parties that could be held negligent for the fires under California law. Taking this step will help you get a better idea of your options moving forward.

Next, start collecting as much evidence and documentation as possible to prove your losses. When it comes to non-economic losses, it’s going to be an uphill battle to prove not only your losses but their value, too. Since the value of non-economic damages is often tied to the value of your economic losses in personal injury claims, you’ll want to produce as much evidence as you can that shows your economic losses.

Your next step will involve filing the official paperwork necessary to file the claim against the negligent party. When that party receives the lawsuit information, they will have the chance to review the evidence and reach out to you or your lawyer to begin negotiating.

With the right lawyer, evidence, and persistence, your case will likely get resolved during the negotiation phase. If the other party refuses to pay you what you’re entitled to, then the right attorney won’t be afraid to take your claim to court.

How Wildfire Insurance Claims Work in California

Wildfire property damage claims are initiated by the homeowners who suffer property loss and who were insured at the time of the incident. Next, an insurance adjuster will review the claim and estimate the economic impact of the California wildfires on the insured to calculate an appropriate payout amount. The insurance company will make an offer, and the homeowner can accept the terms or negotiate further.

If you plan on filing a Los Angeles wildfire compensation claim, then you need to make sure you properly value your losses. Often, insurance companies will minimize compensation for wildfire survivors simply to boost their own profit margins.

The Role of Utility Companies and Negligence

California’s laws allow utility companies to be held liable for wildfire damage when negligence was a factor in the fire or the victim’s losses. Utility companies have a legal duty to provide for the care of their customers. Fire mitigation negligence occurs when the utility company doesn’t take reasonable steps to reduce the risk of fires or the potential severity of fires.

Steps to Take When Filing a Wildfire Compensation Claim

When you file a wildfire claim, you need to balance being quick and being efficient. You’ll want to contact your insurance company in a timely manner, but you also need to fully estimate and document your losses, too.

First, review your policy in full to understand the terms. Then, contact your insurance provider. Start tracking and documenting all your losses and additional living expenses. Then, consider reaching out to an attorney to help you fully advocate for yourself and your family.

What to Do if Your Insurance Claim is Denied

According to reporting from CNN, insurance companies declined to renew 2.8 million homeowners’ policies between 2020 and 2022. A large percentage of the cancellations were prompted by the insurers. The biggest reason for this is that California’s insurance companies are facing a serious crisis. This loss in profits is driving an increase in denied insurance claims, too.

If you seek wildfire damage recovery in 2025 through an insurance claim and you get denied, then don’t lose hope. Contact an attorney right away about your situation. Your lawyer can help you determine whether it makes the most sense to appeal the denial or seek compensation through a different avenue, like a lawsuit.

Common Mistakes to Avoid During the Wildfire Compensation Process

One of the biggest mistakes you could make when filing for wildfire compensation is accepting a fast offer for a quick settlement from an insurance provider. Often, these fast settlement amounts are far below what you really deserve based on your losses, and your insurer can save a lot of money by getting you to agree to a reduced amount. This isn’t to be confused with an advance payment, however, which is simply money that’s meant to help you get through the immediate tragedy while an insurance adjuster reviews your case.

On the flip side, you could also make the mistake of waiting too long to report the fire or initiate your claim. Not adhering to strict deadlines could derail your case.

Another huge mistake to avoid is not documenting your losses correctly. You’ll want to get as much proof as possible that shows the value of what you’ve lost.

Real-Life Examples of 2025 California Wildfire Compensation Cases

One of the biggest real-life examples of ongoing California wildfire compensation cases concerns the Palisades Fire, which led to the destruction of nearly 7,000 structures and 11 deaths. The Los Angeles Department of Water and Power (LADWP) is facing potentially thousands of lawsuits over the blaze, with plaintiffs alleging that the LADWP's failure to maintain adequate water pressure, due to the Santa Ynez Reservoir being offline for maintenance, hindered firefighting efforts.

California's legal framework allows for utilities and government entities to be held financially responsible for wildfire damages under a doctrine known as “inverse condemnation,” even without proven negligence.

Another ongoing case is LA County vs. Southern California Edison and Edison International. The lawsuit alleges that the utility company’s towers sparked the Eaton Fire, which destroyed over 9,400 structures and resulted in 17 fatalities. Plaintiffs are claiming under inverse condemnation to argue that the city's mismanagement of water infrastructure exacerbated fire damages, constituting a "taking" under inverse condemnation principles.

Many other wildfire insurance claims in Southern California are currently being litigated, negotiated, and resolved right now.

How to Work with an Attorney to Maximize Your Compensation

The best way to avoid these pitfalls and maximize your compensation settlement is to enlist California wildfire attorneys to advocate for you during your claim. The right lawyer will guide you on how to best document your losses, compile your case, and negotiate with the insurance company.

According to the US Fire Administration, there were around 3.5 fatalities for every 1,000 residential structure fires in California in 2023, and about one fatality per 1,000 wildfires. When your situation involves a wrongful death due to a wildfire, you should contact an attorney ASAP. Let our lawyer at Kermani LLP navigate the legal aspects of your situation while you focus on grieving your loss.

Reach out to our wildfire compensation team now by leaving your contact details on our online form or call us directly at (866) 553-6903 to schedule a free, confidential case evaluation.