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.

Estimates suggest the latest LA wildfires alone could cost the insurance market up to $20 billion. If you recently got hurt, suffered property loss, or sustained other types of losses after a wildfire in California, it’s critical to quickly get informed about your rights and options when it comes to seeking out wildfire compensation.

Considering the rocky ground the insurance industry is currently on in California, it might make the most sense to hire an attorney to help you recover the compensation you need to move forward from the fire. Learn everything you need to know about your options and how to file a claim right here.

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.

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 out 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 advanced 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.

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 (855) 537-6264 to schedule a free, confidential case evaluation.

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.