Home Insurance Claim Helps Wildfire Victims Rebuild

Key Takeaways

• Knowing what's covered by your home insurance, like whether you have actual cash value or replacement cost coverage, is a good place to start.
• Meeting with your agent regularly can help keep your home insurance updated.
• Have an evacuation plan for natural disasters that could happen where you live, including wildfires, hurricanes and tornadoes. According to Ready.gov¹, creating a fire-resistant zone around your home, clearing leaves and debris, and using fire-resistant building materials can also help protect a home from wildfire. The American Red Cross also provides helpful preparedness resources.
• Creating and maintaining a home inventory of your personal belongings can help. If you have a home insurance claim, that inventory can help support your personal property coverage claim.

What this case study teaches about wildfire insurance

The Dillingham family's experience illustrates several important aspects of wildfire insurance coverage:

Standard home insurance covers wildfire damage

Homeowners insurance is typically designed to help cover wildfire damage under the fire peril, a standard covered event in most policies, though coverage details and availability can vary by location and policy. The Dillinghams' policy helped cover their complete home loss, including the dwelling structure, personal belongings and temporary living expenses during rebuilding.

Replacement cost coverage matters

The Dillinghams had selected replacement cost coverage (not actual cash value), which meant they received the full cost to rebuild their home without depreciation deductions. This made a significant difference in their ability to recover.

Extended replacement cost addresses rising construction costs

After widespread disasters, construction costs typically spike due to high demand and material shortages. The Dillinghams' Extended Replacement Cost option, which is designed to extend coverage beyond the standard dwelling limit, helped them address rising building costs and complete their rebuild.

Quick evacuation requires advance preparation

The family had only 45 minutes to evacuate. Having go-bags prepared and important documents in a safe allowed them to leave quickly with critical items. Their insurance information was also accessible through the COUNTRY Financial mobile app, which helped during the claims process when physical documents weren't available.

Home inventory speeds claims

While the Dillinghams didn't have a formal home inventory, knowing what was lost and being able to document belongings helped with their personal property claim.

Creating a home inventory before a disaster can make this process easier.

Insurance representatives provide crucial support

The Dillinghams' agent, Tarah Sussman, called to check on them when fire threatened and helped guide them through the claims process. Having an established relationship with their agent made the recovery process less overwhelming during an already stressful time.

Learn more about the Dillingham's home insurance experience

The Dillinghams were familiar with wildfire threats. They weren't uncommon, but local firefighters were usually able to get the fires under control.

But in September 2020, when they learned of the growing threat, James Dillingham could see that high winds were spreading the fire and that the number of fires was stretching available resources thin. He knew firefighters were focusing on threats to more populated areas and weren't able to fight the fire approaching his home.

Preparing to evacuate

The Dillinghams sensed the impending danger and started packing even before the official evacuation order. The family of four had 45 minutes to pack their important belongings in two vehicles and evacuate their family home.

Lisa Dillingham explained, "We always had our go bags during this time of year, and our important documents were in the safe in case we had to evacuate.

"It was emotional because you always think you're ready like, we got this. And you're not. But for me, my priority was my family first and then our animals."

The Dillinghams had an evacuation plan and knew where to go and what to take. With more wildfires popping up near the homes of their relatives, they moved multiple times before settling temporarily at a home that belonged to a friend of a friend.

Starting the recovery process

After securing a small apartment near their property, James and Lisa returned to see what was left. Unfortunately, they found very little remaining. Their patio furniture, their daughters' trampoline, an older car, and James' trailer were slightly damaged but survived.

Seeing those things that were spared helped the family know they were going to get through the experience. They had their land, and with the help of their home insurance, claim adjuster and insurance agent, they came together as a family to clear their land and start rebuilding.

When the Dillinghams originally bought their homeowners insurance policy, they selected replacement cost coverage and the Extended Replacement Cost option. With that coverage in place, they were able to work through the rising building costs, and in May 2021, about nine months after the fire took their home, they moved into their new home.

Building new memories

The Dillingham family is thankful for the opportunity to rebuild their home and is an advocate of home insurance and reviewing coverage regularly. As they built their new home, they considered ways to make it safer from future wildfire threats. They're as far away as possible from tree lines and installed an above ground pool to supply a water source to battle fire.

Their youngest daughter Briseis, who was just nine years old at the time of the fire, reflects on the experience, "I just feel so thankful that we were able to build a house on the same property because I feel like I have a part of the old house with me."

Review your home insurance

The Dillingham's insurance agent, Tarah Sussman, advocates regular insurance reviews and encourages clients to have a home inventory. "I recommend my clients take a video of their belongings," says Sussman. "So, if they ever have a house fire and their home is gone, they have something to look back on and can recall everything in their home."

Having that inventory can make the home insurance claim process easier, and regular insurance reviews can help make sure you have the protection you expect and need. Contact your insurance agent for an insurance review.

Common questions about wildfire insurance