WELCOME TO THE WONDERFUL WORLD OF INSURANCE

You’re probably going to be here a while so let’s get you empowered to navigate with as much ease and grace as possible.

*This information has been checked for accuracy and non-bias by licensed insurance experts and representatives from National 501c3’s specialized in insurance advocacy. We are not insurance brokers. Consult with a licensed professional about your insurance policy and specific situation.

first

What Kind of Insurance do you have?

Home Owners
("HO-3 Policy")

A traditional homeowners insurance policy helps protect your home and belongings before a disaster by covering things like fire, smoke damage, theft, and liability.

After a wildfire, it can help pay to repair or rebuild your home, replace what’s inside, and cover the cost of temporary housing while you recover.

If you have homeowners insurance, this guide is for you!

Renters ("HO-4 Policy")

Renters insurance is for people who don’t own the property they live in—it covers your personal belongings, not the building itself.

It helps protect your stuff from things like fire, smoke, or theft, and can also cover temporary housing if your rental becomes unlivable (like after a wildfire), plus some liability protection if someone gets hurt in your space.

Our Renters Policy guide is coming soon.

CA FAIR Plan

The California FAIR Plan is a last-resort fire insurance policy for homeowners who can’t get traditional coverage, usually because they live in a high wildfire risk area.

It covers fire and smoke damage to the structure of your home, but doesn’t include things like theft, liability, personal belongings, or temporary housing—so most people need to add a separate companion policy to fill those gaps.

Our FAIR plan guide is coming soon.

get to know your policy

Your insurance policy is your most valuable tool in your recovery, but it’s enigmatic, guarded by an industry that doesn’t want you to really understand what you have at your disposal. Become your own best advocate by getting intimately acquainted with your coverages.

You want to closely read your entire policy - not just the front “declarations” page. You need every page in the package, and ideally you’ll want two printed copies - one you can highlight and mark up, and another you can keep clean for reference. You can ask your adjuster to mail these to you, (It’s your right! For more on those, click here).

The whole package might read like confusing gibberish. That’s by design! Here’s a full guide to your coverages and what they all mean.

how it works when you have a mortgage

Your insurance policy is broken out into “buckets” of “coverage”. You can read up on what each of those are here but think of each category as paying for a different part of making you whole after a disaster.

Different buckets of your coverage are paid out in different ways. Your personal property coverages (for your stuff) don’t go through the mortgage company, but most of your other coverages (to rebuild the house, etc.) do.

What typically happens is the insurance company will send you a check made out to both you and the mortgage company (since the mortgage company technically owns it with you).

They will likely put it into an escrow account and release it in stages as you rebuild or repair.

“Do I need a Public Adjuster?”

That’s entirely personal, but experts do advise that if you’re underinsured, you’ll want to do as much as you possibly can to deal with your insurance company yourself before hiring a Public Adjuster, since they take a part of your settlement, (a lot can be achieved with good templates and strategic asks.)
For a full rundown on Public Adjusters you can read up here.

How To Handle

Disputes

You’re probably going to have to do a fair bit of advocating for yourself in this process. Your adjuster is not your friend, but they’re also not your enemy.

Here’s a guide to your rights as a California Policyholder, which should give you some insight into how to play a problem when it arises. If things get hairy, consult a professional or an attorney.

(If you are involved in a lawsuit against SCE, that attorney may be able to help.)

What if they are behaving badly?

The insurance process can seem designed to be difficult and confusing. If your insurance company isn’t sticking to the rules and timelines they should, you have recourse.

United Policyholders is widely regarded as the leader in the insurance advocacy space. They have a massive library of resources, templates, videos and tools to help you engage with your insurer. If you have done everything they’ve asked of you and they are still not doing what they should it’s possible they are engaging in what is referred to as “Bad Faith”. A Bad Faith lawsuit is something you would have to explore with an attorney, but you can read up on them here.

So many adjusters

  • This person works for your insurance company and will be who you deal with for your insurance claim. They are who you talk to about payouts, etc.

    You speak directly with this person on a regular basis.

    *Your Desk Adjuster may change, even a few times, over the course of your claim process. If they get changed too many times, you may have recourse.

  • This is the person who your insurance company sends out to visit your property to assess the damage and estimate the cost to repair it.

    You will likely only deal with them at the site visit.

  • This person does NOT work for your insurance company. You hire a Public Adjuster to fight the insurance company on your behalf.

    Public adjusters take anywhere from 8-10% of your full settlement , so be very sure this is the right fit for you before proceeding. For more info, see here.

    The general guidance is to only hire a P.A. if you get completely stuck and are amply insured.

Glossary

  • The loss in value of your property over time due to age, wear, or condition. This is why they ask you how old things are.

  • Something you have to pay for initially and then get reimbursed.

    *Be cautious to get it in writing what you are allowed to spend. Also submit invoices or bids before signing any contracts and get your adjuster to put it in writing that the total amount will be reimbursed.

  • A third party comes in and makes a professional assessment of how much something is worth.

    *Insurance companies often low ball estimates so be sure to get your own appraisals and submit for review.

  • An add-on to your policy that expands or modifies coverage (e.g., extended replacement cost).

  • The maximum amount your insurer will pay for a specific type of coverage.

  • A formal statement (or photos) provided to the insurer detailing what was lost and what it was worth — often required to process a claim.

  • A detailed breakdown of the damage and what it will cost to repair or replace — often prepared by your “Field Adjuster”.

  • The front page of your policy that lists coverages, limits, deductibles, and endorsements.