With tens of thousands of insurance claims and more than $4 billion in payouts, the impact of the California wildfires is hard to dismiss. The recent disaster has highlighted the importance of disaster preparation among homeowners and businesses in risk-prone areas.
Robert Feldman (pictured), president and CEO of WOWS Insurance Services, has spent over 25 years in the insurance industry, navigating some of the most devastating wildfires in California.
Feldman has seen it all – the confusion, the displacement, the overwhelming bureaucracy that fire victims must face. Tapping into those experiences, he’s developed a playbook that can mean the difference between financial recovery and prolonged struggle.
He shared five steps that agents and brokers can share with clients who lose or damage their property during a wildfire:
Feldman recommends that insureds file their claims as quickly as possible. He acknowledged that the shock of losing a home paralyzes people, leaving them unsure of what to do next. But he emphasized that speed was of the essence.
“I met an elderly woman from the Eaton fire who was staying at a Red Cross shelter, completely lost. It drove me crazy – she didn’t even know where to start,” he said.
“We got on the phone, filed her claim, and as soon as she had a claim number, she could stay in a hotel. That’s why step one is critical: file the claim, get a claim number, and secure an adjuster."
While most fire victims eventually manage to file their claims, the second step often gets overlooked. “Step 2 is, believe it or not, the most important step of all five steps,” said Feldman. “If you lost your house, you have to certify the home as a total loss.”
He explained that during times of extensive disaster, insurance adjusters are often drowning in claims, which means that they prioritize cases that are clear-cut, straightforward, and easy to process.
Certification is often as simple as providing photographic evidence. This year, Feldman said California Fire made this process even easier by allowing homeowners to check their addresses on the agency’s website to see if their home was labeled a total loss, partial loss, or undamaged.
Certifying a total loss is about more than just processing paperwork – it unlocks essential coverage. Once clients have secured some funds, Feldman calls for the third step: establishing normalcy.
“The first thing you have to do to normalize somebody’s life is to get them somewhere they’re going to live long-term while they go through this process and get them money,” he said. The financial support unlocked through the certification process can be immediate and significant.
“We had one client on the California FAIR Plan that actually received over $1 million within four days of the fires breaking out because they were able to certify the house as a total loss.”
The speed at which someone can reestablish their life hinges on how quickly they secure the insurance payout.
Step four might seem premature, but Feldman insists it’s not.
The sooner an architect is hired, the sooner the rebuilding process can begin. The process of settling contracts and getting plans approved can take weeks, and any delay means longer waits for permits, materials, and construction.
“Speed is the most important thing here because if you’re fast, you’re going to be the one that wins the game a lot of times,” Feldman said.
This all leads to the final step: securing a builder and filing for permits. The bureaucracy of rebuilding is slow, and demand for builders skyrockets after a major disaster. Hiring early means getting ahead of the rush.
“One, it will allow the insurance companies to exhaust coverage – meaning to pay out all the money for coverages,” Feldman said. “Two, it allows your contractor to get in line to file for permits for the rebuild process.”
Ultimately, while moving quickly would benefit clients the most, the CEO also acknowledged that loss is deeply personal. While insurance payouts provide a way forward, they don’t replace the past.
“I don’t care how great the insurance is,” Feldman said. “You’re never going to get back your wedding toasting glasses or the high school varsity letterman jacket that you didn’t bring with you. You’re never going to get a part of your life back.”
While the reality of disaster is cruel and the system can be challenging for insureds, for those who follow a plan, there’s at least a path to rebuilding, even when everything feels lost.
What do you think of these tips to help clients recover and rebuild after a wildfire as quickly as possible? Please share your perspective below.
