Is PG&E Responsible for the Napa & Sonoma Fires?

If an insurance holder has lost property in a fire, he or she must give a written notice to their insurance company without unnecessary delay. This means that you, as an insurance holder, must notify your insurance company about the losses you sustained as soon as possible. You do not have to know all that you have lost at this point, you just need to tell the company that you have expected losses due to a fire.

After you inform the insurance company, you only have 60 days to turn in an official “proof of loss” portfolio. This means you will turn in the evidence of all the damage your property sustained from the fire, the list of estimated costs of all your burnt items, and the verified proof that substantiates these claims all within 2 months of the initial incident. So, in short, speed is essential to your claim.

A homeowner can potentially have four types of fire insurance coverage. Dwelling coverage insures the house itself. If a wall, roof, and other portions of the actual house structure are damaged in a fire, dwelling coverage should protect it. Other structures coverage insures any structures on a property that are not the house. Structures such as detached garages, workshops, guest homes, etc. should be covered. Personal property coverage insures the actual items in your house, in other structures, and on your property. Loss of use coverage insures additional living expenses you might face due to the fire damage in your home. This should cover hotel expenses if your family’s house is uninhabitable and you must live out of a hotel while waiting for repairs. It will also cover “lost rent” if you had a tenant living in your home when the fire damaged the property and made it uninhabitable.

Your home is typically insured at its "Actual Cash Value" (ACV). ACV isn't what you paid for your home but its current value, which depreciates over time, similar to cars. A 10-year-old house's ACV will be less than a 2-year-old one due to depreciation. An insurance payout based on a home's ACV may not cover the rebuilding cost, as newer materials often cost more. For instance, an older computer's sale price won't match the cost of a new one.

If your home has partial damage, like from a fire, you might qualify for replacement cost coverage, which pays for repairs without factoring in depreciation. So, if you repair a fire-damaged roof, you'd receive the full repair cost, regardless of the roof's age before the fire. This payout principle applies whether your home is 10, 2, or 25 years old. Remember, the coverage applies up to your policy limit. If the ACV or repair costs exceed this limit, the insurance won't cover the excess.

By law, you must meet specific deadlines for insurance filings to get full compensation. Similarly, insurance companies are legally obligated to treat your interests on par with theirs, meaning they should handle your claim as they would their own concerns. If insurance companies prioritize their needs over policyholders', they risk legal consequences. In court, ambiguous insurance terms like “fair” or “reasonable” often favor the policyholder. For instance, if a policy says insurers will extend the filing deadline under "reasonable circumstances," the definition of "reasonable" would need court clarification. Due to such nuances, it's advisable for those in California to not handle fire insurance claims without adequate legal expertise.