As wildfires grow more frequent and severe across California, Oregon, and Washington, homeowners and businesses face mounting challenges in securing and maintaining property insurance. The Los Angeles wildfires alone have resulted in tragic losses—28 lives, thousands of homes destroyed, and billions in economic damage. In the aftermath, many policyholders are discovering that their insurance coverage is riddled with complexities, exclusions, and rising costs, leaving them vulnerable when they need it most.

Key Takeaways:

  • Understanding Coverage Limits: Standard homeowners’ insurance covers fire damage, but policy limits, rising construction costs, and exclusions can leave significant gaps. Business owners face additional hurdles with business interruption claims and indirect losses.
  • Rising Premiums & Policy Non-Renewals: Insurers are increasingly pulling out of high-risk areas, leading to soaring premiums and stricter policy terms. State-run FAIR plans serve as a last resort but often come with high costs and limited benefits.
  • Legal Recourse & Bad Faith Claims: Policyholders denied or underpaid on claims may have legal options. California’s bad faith laws hold insurers accountable for unfair practices, potentially resulting in compensation beyond the original claim.
  • Health & Environmental Fallout: Beyond financial losses, wildfires have long-term consequences, including poor air quality, water contamination, and ecosystem destruction, often with limited insurance support for affected residents.
  • Proactive Preparation: Reviewing policies, documenting assets, considering endorsements, and seeking legal advice early can improve insurance outcomes and financial recovery in the event of a wildfire.

With insurers and policymakers reevaluating their approach, the future of wildfire insurance remains uncertain. Homeowners and businesses must stay informed, advocate for stronger protections, and take proactive measures to ensure they are adequately covered before disaster strikes. Click here to explore in-depth strategies for securing reliable coverage and protecting your property.

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Photo of Cameron Zangenehzadeh Cameron Zangenehzadeh
Cam Zangenehzadeh is an attorney in the Litigation practice, representing corporate policyholders in the recovery of insurance assets. Cam regularly advises companies on a wide range of risk management issues and has represented Fortune 500 companies in complex insurance recovery matters, including in
Cam Zangenehzadeh is an attorney in the Litigation practice, representing corporate policyholders in the recovery of insurance assets. Cam regularly advises companies on a wide range of risk management issues and has represented Fortune 500 companies in complex insurance recovery matters, including in coverage litigation involving environmental property damage. Cam has recovered millions of dollars for clients under various commercial insurance policies and in a variety of contexts.

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Photo of Nathan Davis Nathan Davis

Nathan Davis is a distinguished insurance coverage attorney who focuses on recovery work for policyholders in California, throughout the West, and across the country. Known for his strategic acumen in complex insurance disputes, Nathan advises clients on securing coverage under a variety of…

Nathan Davis is a distinguished insurance coverage attorney who focuses on recovery work for policyholders in California, throughout the West, and across the country. Known for his strategic acumen in complex insurance disputes, Nathan advises clients on securing coverage under a variety of policies, including general liability, directors and officers, business interruption, and media liability. His nuanced understanding of insurance recovery enables him to advocate for clients facing sophisticated coverage challenges across multiple industries.

Photo of Seth Row Seth Row

Seth Row’s practice focuses on policyholder-side insurance recovery involving a mix of litigation and counseling and behind-the-scenes advocacy to clients in multiple industries. In more than 20 years of practice, Seth has helped clients recover millions of dollars under almost every variety of…

Seth Row’s practice focuses on policyholder-side insurance recovery involving a mix of litigation and counseling and behind-the-scenes advocacy to clients in multiple industries. In more than 20 years of practice, Seth has helped clients recover millions of dollars under almost every variety of commercial insurance policy including general liability, employment practices, property and business income loss, builder’s risk, Directors & Officers, representations & warranties, marine, and cyber-risk, among others.

Click here to continue reading Seth Row’s full bio.