Home Destroyed by Wildfire? 5 Important Steps to Take Now

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Wildfires are among the most costly natural disasters, and they're happening with increasing regularity. Early evacuation can reduce the likelihood of human casualties, but there's no way to pick up your home and move it out of the fire's path. Wildfires can wipe out entire neighborhoods in a day, and the associated homeowners insurance claims can be very high.

There's a lot to grieve when this happens to you, and it can be difficult to know how to get back to normal. Here are five key steps to get you started.

1. Prioritize your safety

The loss of your home, personal property, and even family heirlooms can be devastating, but it's nothing compared to losing your own life or the life of a loved one. There will be time to address the damages later, but while the fire is still nearby, it's important to comply with all evacuation orders and get somewhere safe. Do not return to your home until authorities say it is safe to do so.

2. File a homeowners insurance claim

Homeowners should file a claim with their insurance company as soon as possible so they can get the funds they need to rebuild their property. It helps to have your policy number handy, but insurance agents can help you track this down if you don't have it readily available. If the wildfire destroyed vehicles, you may need to file an auto insurance claim as well.

It can take time to complete the claims process, especially for homeowners who reside in a hard-hit area. But most home insurers have online tools that enable customers to track their claim online. Feel free to check in with the insurance agent as often as necessary and be prepared to provide requests for further information as needed.

3. Find an alternative place to live

If your home isn't habitable due to wildfire damage, you may need to find a place to rent while you rebuild. Homeowners insurance typically covers the cost of alternative living arrangements. This is also known as loss of use coverage.

But it's not unlimited. Generally, loss of use coverage is limited to about 20% of the policy's dwelling coverage. So if the home was insured for $500,000, the homeowner would get $100,000 to cover alternative living arrangements.

Check with the home insurer to learn more about this coverage and how to claim it. You'll probably need to keep receipts proving how much you've paid for other living expenses.

4. Take stock of destroyed belongings

Homeowners insurance also covers personal property -- everything from dishes and toiletries to electronics and heirlooms. Ideally, you'll have completed a home inventory before the fire detailing what you own and its approximate value. If you don't have this, you'll have to do a little extra legwork.

Gather any receipts or purchase agreements related to personal property and make a detailed list of what you owned. Reviewing any photos of your property might jog your memory. Be as specific as you can, noting makes, models, and years of purchase when possible.

Note that certain types of items, like jewelry and computers, may only have limited homeowners insurance coverage unless the policy had a rider increasing this limit. Contact the insurance agent if you're unsure how much some of these more expensive items are covered for.

5. Check into government aid

Homeowners may qualify for government aid if their home is part of a federally declared disaster area. The Federal Emergency Management Agency (FEMA) website lists all federally declared disaster sites and the assistance available to anyone living in one.

Even if you follow the above tips, it may take a while to fully recover from the devastating effects of wildfire. Take things day by day and stay in touch with your insurer as needed. Respond promptly whenever you can to speed the claims resolution process.

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