In the wake of the horrific 2018 California wildfires, many residents are struggling with recovery – both physical and financial.

One of the most notable California wildfires last year was the Camp Fire in Butte County. The fire became the most destructive wildfire on record after destroying or damaging over 18,000 structures, surpassing the record held by the Tubbs Fire of 2017. The fire killed 85 people, making it the deadliest wildfire in the state’s history.

The next seven most destructive California wildfires combined do not even surpass the destruction caused by the Camp Fire.

The Woolsey Fire in Ventura and Los Angeles counties destroyed an additional 1,643 structures and covered over 96,000 acres in 2018.

Between the Camp and Woolsey fires alone, there were over 20,000 structures damaged and around $15 billion to $19 billion in total losses.

Wildfires and Insurance

Causes of the destructive California wildfires seem be dry fuels, high wind speeds, and rugged terrain making the fires easy to spread and difficult to combat. Other causes are the fault of utility companies’ equipment; the Woolsey fire victims blame SoCal Edison. Some of the areas affected had dry conditions or were in the middle of a drought, increasing their likelihood of burning.

According to Insurance Journal, analysis by CoreLogic revealed that over 90 percent of the homes damaged by the California wildfires had a high or extreme risk of wildfires. This classification is important because it can clue homeowners in about the very real risks they face.

If consumers are aware of their risk for property damage by California wildfires, they may be able to seek appropriate insurance options to protect their homes from costs of a natural disaster. Insurance can be especially vital when it comes to wildfires because, unlike other natural disasters, wildfires frequently result in a total loss of structure and personal property.

Unfortunately, homeowners whose property was damaged by the California wildfires may find that their insurance was insufficient which may result in an inadequate estimate of the home’s reconstruction cost value. This value indicates the cost in materials and labor required to rebuild a home and is important when insurance companies calculate payments.

If a home’s reconstruction cost value is underestimated, consumers may be forced to pay for reconstruction costs out of pocket due to a lower insurance payout.

Inflationary pressure can also have an effect on reconstruction cost value, and it is recommended to reevaluate the value every two years. Even if the value is reevaluated with a factor or index, this may help consumers recover a more appropriate insurance payout after being affected by catastrophes such as California wildfires.

After the past fire seasons, new regulations in California require reevaluation every other year or the use of a cost index. This will hopefully prevent properties from being undervalued.

Consumers whose property was damaged during the California wildfires may be fully covered by their insurance. However, if homeowners find themselves without sufficient coverage, they may be able to hire a specialized legal professional who can help them recover the maximum compensation from insurance companies. These individuals have experience advocating for consumers when dealing with insurance companies and may help recover compensation that a lone consumer would not be able to fight for.