You don’t have to accept the first offer from your insurance company or the government. You also don’t have to go through this alone.
If your home was damaged or lost in the fires in Los Angeles, the toughest challenge may still lie ahead: securing the funds you deserve from your insurance company or the federal government.
This process can be frustrating and confusing, especially during such a stressful time in your life. To make matters worse, the stakes are high. You can’t afford to make a mistake.
Here’s a simple guide on what steps to take and what to avoid, according to expert recommendations in the field. It emphasizes two main points: You don’t have to accept the first offer from your insurance company or FEMA. And you don’t have to handle everything by yourself.
Make sure you keep a record of everything.
Take pictures of any damage to your home as soon as possible. Whenever you talk to someone from your insurance company or a government agency, write down notes about the conversation. Include the person’s name, the date, and what was discussed. If you buy anything for repairs or supplies while you’re out, save all your receipts.
Getting money from your insurance company might be difficult.
The primary way you’ll get money to fix or rebuild your home is through your insurance company. How much you recover relies on getting the maximum amount your policy allows, which might be challenging.
“People have to be prepared to fight to have the terms of their contracts met,” said Douglas Heller, director of insurance at the Consumer Federation of America, in an interview with The New York Times.
Heller suggests that when you receive an offer from your insurance company, you must remember a couple of important things. First, think about whether the amount they are offering is enough to fix or rebuild your home. Second, make sure you are being offered the highest amount allowed by your policy.
If you’re being offered less money than you believe you should receive and less than what your contract states, Heller urges that you should speak up. But, the most effective way to do this is to seek assistance from a professional.
Call a public adjuster as soon as possible.
If you think your insurance company is giving you less money than you should get, you can contact a public adjuster. These are independent experts who evaluate the damage to your home and work with the insurance company to help you get the amount you deserve based on your policy.
“A public adjuster is most effective when he or she is involved in the beginning of the matter,” Jeffrey Major, a public adjuster who has assisted with insurance claims after major disasters like Hurricane Katrina in 2005, Superstorm Sandy in 2012 and the wildfire in Lahaina on Maui last year, told The Times.
“When I’m involved in the matter from day two or three, I can get in and gather the evidence I know the insurance company is going to need, and if I’m meeting the insurance adjuster, that’s going to be best for the homeowner or the business owner.”
Hiring a public adjuster isn’t free. They usually take about 10 percent of your insurance payout, but they can often help you get a bigger settlement than you would on your own.
Your state insurance office could be of assistance.
You might also want to reach out to your state’s insurance department, as they usually have a team that handles consumer complaints. If you’re in California, you can call the Department of Insurance at 1-800-927-4357, or you can submit a complaint online here.
If you make a complaint against your insurance company, make sure to send a copy of that complaint to them as well.
Heller also advises that you shouldn’t rely on the state agency to step in and help with your insurance company. The key is to demonstrate to your insurance company that you won’t back down easily and are determined to stand your ground. Should the state observe a trend of insurers treating individuals unfairly, they may take broader action by instructing these companies to revise their practices, Heller said.
When you should call a lawyer.
If you’re not happy with the settlement you’re getting, the last resort is to hire a lawyer. But don’t rush into it right away.
Bringing in a lawyer too early “comes across as combative,” according to Clifford Nkeyasen, a lawyer from Dallas who helps people sue insurance companies. He shared this advice with The Times after Hurricane Helene hit North Carolina.
In addition, evaluate the difference between what your expectations are and what your insurance company is providing.
“If you think the contents of your house are worth $100,000 and they’re sending you a check for $10,000, that’s the time to hire an attorney,” Nkeyasen said.
How to Get Help From FEMA
Another key avenue for assistance is likely to be the Federal Emergency Management Agency (FEMA). While FEMA’s support programs are not a substitute for insurance, they can provide crucial forms of aid.
Some of this support can come right away. FEMA offers disaster survivors a one-time grant of $770, intended to address urgent needs like food or essential supplies for those who have been displaced from their homes. This program is a grant rather than a loan, so if you receive the $770, you won’t have to pay it back.
FEMA provides more than just basic help. One notable initiative is the Individual Assistance program, designed to help people who have been affected by disasters find emergency housing. FEMA also extends a range of other assistance options such as money for hotel stays, emergency medical assistance, vehicle repairs, and child care. Right now, people in Los Angeles County who were impacted by the fires can now apply for the Individual Assistance program.
To find out if you qualify for FEMA’s $770 payment or other types of individual assistance, visit www.disasterassistance.gov or call 1-800-621-FEMA (1-800-621-3362).
It might seem obvious, but make sure to answer all questions on your application carefully. Many applications get turned down because of simple mistakes, like spelling your name incorrectly or putting in the wrong Social Security Number.
Once FEMA receives your application for housing repair, they will send someone to check the damage or use aerial photos. It’s important to understand that the program is meant to give you the money needed to make your home livable, not to cover the full cost of fixing it up. This year, the maximum amount FEMA can give for home repairs is $43,600.
Still, feel empowered to challenge your FEMA grant decision!
If your house was entirely lost to the fire and you either didn’t have insurance or didn’t have enough coverage, you should be eligible for the full grant of $43,600. This information comes from Reese May, who is the chief strategy and innovation officer at SBP, a nonprofit organization that helps people recover from disasters and understand FEMA assistance.
May suggests that if you are offered less money than that, you should ask for a review.
If your home was only partly damaged and your FEMA help is less than $43,600 and doesn’t cover your needs, you can still ask for a review.
Only 3% of people whose FEMA applications are turned down choose to appeal, according to reporting by The Times. However, the advantages of filing an appeal can be significant, even for those whose applications were approved but believe their aid is too low. May noted, “About half the time, we can double the amount of assistance that survivors get.”
May also pointed out that due to the extent of the wildfires, people might find it even more challenging than usual to receive assistance. “Survivors must be vigilant and persistently advocate for themselves,” he said.
It’s important to keep in mind that you don’t have to handle your appeal alone. SBP is providing free assistance to homeowners impacted by the fires who wish to contest a FEMA award. You can reach out to them at www.sbpusa.org/get-help/. The organization also mentioned that it is training local nonprofit groups to assist with appeals.
What if your documents were lost or destroyed in the fire?
If you’ve lost all your documents, including the title to your home, it will make it more challenging to get assistance from FEMA. A spokesperson for the agency mentioned that although someone without identification can apply for aid, they will need to obtain replacement identification before they can receive any assistance. This requirement is in place to help prevent fraud.
According to the insurance association, dealing with your insurance company should be more straightforward. Insurers typically do not ask for proof of homeownership before issuing a settlement. However, if you need to provide a title document, you should be able to obtain a duplicate from the county government, where such documents are usually kept on file.
Other options to consider
If the funds you receive from insurance or FEMA aren’t enough to repair your home, there are alternative options available to you.
Some individuals opt for low-interest loans from the U.S. Small Business Administration. (Despite the agency’s name, you don’t have to own a small business to be eligible.) Others created GoFundMe accounts, which raised over $106 million for disaster recovery in 2023. However, research indicates that these campaigns tend to favor wealthier disaster survivors because they typically have larger social networks with people who are more likely to donate. In addition, many charities and organizations like Win With Black Women are providing assistance to those affected by the wildfires in Los Angeles.
In the event of a significant catastrophe, Congress may allocate extra funds through the disaster recovery program managed by the U.S. Department of Housing and Urban Development. Unlike FEMA assistance, this funding can frequently be used for the expenses associated with rebuilding homes. However, the distribution of this aid is completely up to the decisions of state lawmakers.
