FAQs for Surviving Wildfire Losses—Texas 2024

If I am an IRMI subscriber, can you provide online links to relevant information regarding wildfire insurance losses?

Does IRMI have discussions for subscribers related to claims and claim filing tips?

The following are links to some IRMI discussions related to claims situations.

Does IRMI have free discussions related to claims and claim filing tips?

• "Claim Reporting Best Practices" by Christopher Mandel in Expert Commentary

When should I contact my insurance agent or insurance company about my property damage?

If you have—or suspect that you have—property damage to your home, business, or automobile, notify your insurance agent as soon as possible with whatever details you can provide. In most cases, your agent will have a toll-free phone number for you to contact your insurance company directly. Make sure the adjuster understands that this call serves as notice of your claim. A follow-up email confirming such notice is also in order. Keep a written log of whom you talked to, their title, the date, action items, and the gist of the discussion. This written log is important if you later face problems or delays and need to substantiate your side of the story.

I can't remember what types of coverage I have, and I cannot access my insurance documents. How broad is my coverage?

Ask your insurance agent about details on your coverage, such as deductibles, additional living expenses, business interruption, and business income coverage. Your insurance policy may be destroyed, but your agent can provide this information for you, including the relevant policy numbers.

Does my personal or commercial auto policy cover wildfire losses to my vehicles?

Wildfire losses are covered under the personal auto policy or business auto policy as long as you have purchased other-than-collision (formerly called comprehensive) coverage for the vehicle. Check your declarations page or call your agent to determine if you have this coverage, which is typically subject to a deductible.

Does my homeowners or business insurance policy cover wildfire losses?

Yes, these losses are covered under your property policy subject to a deductible and other policy provisions.

What about my additional living expenses, business interruption expenses, and business income losses?

The standard homeowners policy and tenants policies provide additional living expenses, which are often 20–30 percent of your dwelling limit. So, keep track of your additional expenses, such as hotel rooms and restaurant charges. For businesses suffering a wildfire loss, a commercial property policy can, and often does, provide coverage for the resulting loss of income or increased expenses. Contact your agent for details.

When should I inspect my home or business? And what resources are available for me?

Caution is urged here; you should not return to your property until municipal authorities have declared the area to be safe from heavy debris and downed power lines. You can call 3-1-1 to see if it is permissible to return to your home or your business property. See the link to the American Red Cross website that addresses this issue.

• "Checking Your Home after a Fire" from the American Red Cross

You can also reach the Federal Emergency Management Agency (FEMA) directly at (800) 621–3362. The following is a helpful FEMA website that gives details on the types of assistance available, the appeals process, and getting updates on applications.

• FEMA Website Page for Texas Wildfires

Note that FEMA also offers "critical needs assistance." This aid is a one-time $500 payment per eligible household for those with unmet vital and financial needs.

• FEMA's Critical Needs Assistance Program

In addition, access the Texas Division of Emergency Management website for assistance. This site can assist with residential damage reporting and details on accessing your property. You can also sign up for the agency's alerts on the wildfire.

• Texas Division of Emergency Management

The US Small Business Administration (SBA) is responsible for providing affordable financial assistance to homeowners and renters located in a declared disaster area. Homeowners may apply for up to $200,000 in low-interest loans to repair or replace their primary residence to its predisaster condition. More information is available on the SBA website.

• US SBA Disaster Assistance

What if I am dissatisfied with the claims process? What are my options?

First, make sure you are providing all the information and documents your insurance company requests in a timely manner. Also, keep a well-documented log of the entire claims filing process. Items to remember in the log are the (a) measures you have taken to assist your insurance company, (b) information you provide, (c) adjuster names and titles with whom you are interacting, and (d) dates of discussions. If you have problems or unreasonable delays, ask to speak to a supervisor or manager. Another option to consider prior to hiring an attorney is contacting the Texas Department of Insurance.. See the following link to file a complaint with this agency.

• Texas Department of Insurance—Filing an Insurance Complaint

How do I go about finding a reputable contractor to repair or rebuild my home or small business?

Consider the following tips for homeowners or small-business owners when hiring contractors.

• Be wary of contractors who solicit business door-to-door or via cold calls. In addition, contractors should be avoided if they quote a price that will automatically go up the next day or week if the property owner does not accept it immediately.
• Request recommendations from friends, family members, and business associates for reputable contractors who have performed excellent work for them.
• Ask the contractor for a written estimate that includes any oral agreements they make in this process. The estimate should contain a line-by-line breakdown of costs, including materials and labor. In addition, there should not be a charge for an estimate; avoid dealing with contractors who attempt to charge for estimates.
• Obtain at least three estimates along with the names and phone numbers of two former customers of the contractor. The property owner should contact these customers and ask about the work performed.
• Verify that the contractor is licensed, bonded, and properly insured. Obtain certificates of insurance for workers compensation and general liability policies from the contractor.
• Contact the Better Business Bureau (BBB) to see if complaints have been filed against the contractor. This step can be performed via the BBB's website.
• Avoid contractors who ask for payment for the entire job before the work begins. The standard practice is to pay 33 percent of the job up front.
• For major work, get an experienced attorney to review the construction contract.

What are some additional disaster relief resources available?

The following are links to some further disaster relief resources that you may find helpful.

• American Red Cross
• American Red Cross Wildfire Safety Tips
• Office of the Texas Governor
• Texas Wildfire Relief Fund
• FEMA's Assistance to Individuals and Households Program
• DisasterAssistance.gov
• US Department of Homeland Security—Providing Disaster Assistance