by Attorney Janet Portman

Ten tips for homeowners who have been burned out

Wildfires are an increasing fear for homeowners in the West, particularly in California. People are moving into risky areas and building homes on steep, brushy lots that are hard to protect. Ironically, years of now-controversial fire management policy--which dictated that all fires were to be suppressed--have resulted in a dangerous build-up of dead growth and underbrush, creating a stack of fuel waiting for a spark. Add drought conditions, high winds, and low humidity, and all the pieces are in place for a devastating catastrophe, like the fires in Southern California in October 2007.

Homeowners whose property has been damaged or destroyed will look to their insurance for relief. Here are ten tips to keep in mind as you interact with your insurance company and its adjustors.

1. Get an Advance

If you were forced to evacuate, you might not have grabbed basic necessities--from a toothbrush to clothes that you can wear to work. Your homeowner's policy will cover the cost to replace these items, but you don't have to file a claim and have it approved before heading to a department store to purchase that suit you need for the office.

Instead, ask your company for an advance against your eventual claim. Ask a representative of the company to bring a check to you wherever you're staying, be it a hotel or a friend's house. Save the receipts for everything you buy, and be reasonable--if you lost khakis and a blazer, don't head for the Armani suits (you'll end up paying the difference).

Check your policy -- even if you have "replacement" coverage (see Tip Six, below), you may have only "actual cash value" for the contents of your home. A good agent will alert you to this and suggest buying an endorsement so that your contents will be covered under a replacement policy, too.

2. Secure Your Property

Every policy requires you to take reasonable steps to minimize the harm to your property. In legalese, this is known as your duty to "mitigate damages," and it includes such common-sense steps as covering a section of your leaky roof with a plastic tarp until you can get it repaired, or turning off the water when you discover a burst pipe. Depending on your situation, there may be steps you can take after the fire is gone (your insurance company will pay these costs when you make your claim):

• Stop the smoldering. If the structure is still burning, contact the fire department to do what's necessary to prevent a flare-up.
• Board it up. To prevent vandalism, board up your property and consider erecting a portable chain-link fence to keep people away.
• Be vigilant. Depending on the situation, you may need to keep a close eye on your property, checking for new problems and making sure it hasn't been disturbed.

3. File Your Claim Right Away

All policies require homeowners to report their loss as soon as is reasonably possible. You can comply by calling your agent or sending an email. After that, you'll be asked to submit a "proof of loss claim," in which you itemize your losses and list the value. If you delay notifying your company, you may find yourself far down on the list when it comes time for the company to send an adjustor to deal with your claim.

4. Make Sure the Insurance Company Acts Promptly

Fortunately, insurance companies are required to handle claims in a timely manner. In California, they must send you a "notice of intentions" within 30 days of receiving your claim. If there's no dispute, you're entitled to payment within that time, too. If you haven't heard from your company and you feel that they are unnecessarily dragging their heels, write to them (and consider sending a copy to your state's Department of Insurance). Insurance companies are less likely to string you along when they're in the midst of a disaster and know that all eyes are on them.