To say that California has been hard-hit by wildfires would be a gross understatement. California, the most populous U.S. state and the third largest by area and home to iconic landmarks, such as the Golden Gate Bridge, Yosemite National Park, and Hollywood, has been severely ravaged by wildfires. The 2025 wildfires have destroyed thousands of homes, businesses, and other structures, predominantly in Los Angeles and surrounding areas.
As of the writing of this article, wildfires have collectively cost California an estimated $250 billion to $275 billion in total damage and economic loss, making them the most costliest disasters in U.S. history. For Californians who have seemingly lost everything because of these raging fires, picking up the pieces and putting their lives back together is no easy task. That includes navigating and successfully filing a property damage claim with their insurance providers.
What More People Should Know About California Wildfires
According to World Vision, a humanitarian, development, and advocacy organization committed to improving the lives of children, families, and their communities, California wildfires have destroyed thousands of acres of land. Named after nearby geographic locations, landmarks, or roads, the parts of California hit the hardest include Palisades, which saw roughly 23,400 acres burned since wildfires began on the 7th of January. It also burned 14,000 acres in Eaton and 800 acres in Hurst. Since the 8th of January, California wildfires have burned 395 acres in Lidia and 43 acres in Sunset. And since the 9th of January, they have burned 1,052 acres in Kenneth. Lastly, wildfires burned more than 60 acres in Auto, the areas near Auto Center Drive in Ventura, CA, since starting on the 13th of January. Local government officials issued mandatory evacuation orders for most of these areas.
2025 California Wildfires: Fast Facts
According to the U.S. Department of Interior, the local California government, and several other organizations, California wildfires have led to the following:
- The burning of more than 40,000 acres
- Over a dozen missing people and 29 confirmed deaths
- The destruction of more than 12,300 structures
- The issuing of mandatory evacuation orders and warnings for an estimated 200,000 people
- Mexico and nine other states lending a hand to extinguish fires
- The use of 400 fire engines and 84 aircraft to contain and extinguish fires
Smoke, Ash, and Soot: The Reality of Filing a 2025 California Wildfire Claim
California law grants individuals the right to seek compensation for damage to their homes caused by the 2025 California wildfires. That includes smoke, ash, and soot damage. California law also requires insurers to immediately pay policyholders one-third of the estimated value of their belongings and at least four months of rent if they are displaced. And it does not end there.
California Governor Gavin Newsom recently issued a one-year moratorium that precludes insurance companies from canceling or issuing nonrenewals of home insurance policies in neighborhoods impacted by the Palisades and Eaton fires. That means homeowners in these areas don't have to worry about losing insurance coverage due to wildfires for at least one year. That said, the statute of limitations to file a property damage claim resulting from a wildfire is three years from the date of the damage. While the timeframe is generous, homeowners impacted by the 2025 wildfires should file a claim as quickly as possible. To get the ball rolling on a wildfire claim, homeowners should start with the following:
- Verifying coverage - Along with damage caused by fire and smoke, most home insurance policies cover damage caused by firefighters while extinguishing a fire. That includes ash and soot. Many policies also cover the "loss of use" of one's home. That means their insurance will cover the cost of rent or hotel bills, meals, transportation, clothing, and other expenses while their home is uninhabitable or inaccessible due to fire. Under California law, these expenses are considered additional living expenses (ALEs). Coverage for ALEs, fire-related damage, and other expenses can vary from one insurance provider to the next. They can also vary from policy to policy. Therefore, homeowners should carefully review their policy and speak with their provider if they have coverage questions.
- Documenting fire damage - Homeowners should take pictures of walls, floors, ceilings, and other areas damaged by fire, smoke, soot, or ash. They should also take photos of damaged items in the home, such as furniture, clothing, electronics, and appliances. Homeowners should keep copies of these photos and any documents, such as police and fire reports, they intend to provide to insurance adjusters for themselves.
- Contacting the insurer - Homeowners must contact their home insurance company and advise them of the damage to their home. Doing so will prompt the insurance company to assign an adjuster. This individual will assess the damage and submit an estimate for review. If there are no objections by the homeowner or the insurance company, the homeowner will receive an initial payment and supplemental payments if applicable.
What Kind of Compensation Can Homeowners Expect After Filing a 2025 California Wildfire Claim?
Several factors determine how much homeowners will receive when they file a wildfire claim, including the kind of coverage they have, the extent of damage to their home, and the home's overall value. The two most common types of coverage offered by California-based home insurance providers are "replacement cost coverage" and "actual cash value coverage." Replacement cost coverage covers repairing or replacing a home and any lost or damaged items without deducting for depreciation. Actual cash value is coverage that pays homeowners the current value of their home and any damaged items inside minus applicable depreciation. To know how the two types of coverage can affect the total compensation payout following a 2025 California wildfire, homeowners should speak with their insurance provider or adjuster.
In summary, wildfires have destroyed a large percentage of homes in California. Fortunately, state laws have made it easier for California homeowners to get the compensation they need to repair and, in extreme cases, rebuild their homes. To learn more about what the local California government is doing to help wildfire victims, consider visiting the California Department of Insurance online or calling them at 1-800-927-4357.
