Navigating the aftermath of the Los Angeles wildfires involves several immediate and long-term actions to regain control over your situation, particularly financially. Here’s a detailed guide:
Short Term Actions
File an Insurance Claim: Initiate the claim process by working closely with your insurance agent to understand your coverage. California law mandates that your insurance company provide you with one-third of your contents coverage immediately if the state is in an emergency. Be thorough about what your policy covers or excludes, especially if you have a California FAIR plan, which is more limited in scope.
Cleaning: Air ducts and possibly replace attic insulation.
File a FEMA Claim: FEMA can offer assistance for losses not covered by insurance. Apply for “Serious Needs Assistance” for essentials like food, water, and short-term housing. Visit www.disasterassistance.gov to apply. Remember, FEMA assistance does not duplicate insurance coverage.
Call your Mortgage Company: Even if you are not home, mortgage payments and property taxes continue. Therefore, contact your lender to discuss potential hardship forbearance options if needed.
Document Displacement Expenses: Keep records of all expenses post-evacuation, as these might be reimbursable if you have loss-of-use coverage. For example, this includes new clothing, medications, etc. However, the California FAIR Plan might not cover all these expenses comprehensively.
Create a Home Inventory: Document everything you’ve lost in the fire. This step is crucial for insurance claims. First, focus on high-value or sentimental items and use photos or memories from friends to help list items.
Use Your Credit Card Benefits: Check if your credit cards offer purchase protection for recent purchases; this can help you recover some of the costs of items lost in the fire.
Create a Loss Journal and Take Pictures: Keep a detailed record of your interactions with insurance companies and authorities and all expenditures related to the disaster. By doing this, you ensure you have a comprehensive account of your recovery process.
Leverage Retail Discounts: Many retailers offer discounts or replacement offers to fire victims, which means they can help you replace lost items.
Replace Important Documents: Services are available to help replace lost records like birth certificates or driver’s licenses at no cost. Thus, contact LA County for assistance.
Mid-Long-Term Actions
Understand Your Tax Rights: Due to the emergency, tax deadlines are extended, and you might qualify for relief from penalties or interest. Keep informed about federal and state tax relief.
Advocate for Your Settlement Offer: If unsatisfied with your insurance offer, you can negotiate through mediation or seek help from public adjusters or attorneys.
Understand your Policy Rights: Be clear about whether your insurance policy offers replacement cost or actual cash value (depreciated cost). California law ensures equal payment whether you rebuild or buy a new home, but always verify specifics with your policy.
This guide offers a structured approach to managing the financial and logistical challenges post-wildfire. Remember, recovery is a process, and these steps are designed to help you regain control over your circumstances step by step.
