Wildfires, Insurance and Liability

California was recently hit by a surge of winds which in turn resulted in some of the most devastating wildfires to hit Southern California. The Pacific Palisades Fire as well as the Eaton Canyon fire destroyed countless homes of Southern California residents which will have implications for years to come.

The recent wildfires have many residents of Southern California inquiring about insurance policies and other issues.

The legal implications surrounding wildfires in California includes issues such as negligence, arson, land management, part played by utility companies, and individual actions.

Insurance

While most home insurance policies do cover damage from fires, there are several different provisions that could affect the type of coverage you have. Residents in fire-prone areas must familiarize themselves with the specifics of their insurance coverage. While a standard homeowner’s insurance typically covers fire damage, residents should check whether the policy includes provisions, and possibly exclusions, for wildfire damage. Residents should also look closely at coverage limits, deductibles, and if the policy outlines the process for claiming additional living expenses if you cannot stay in your home.

Determining liability 

Several fires that have wreaked havoc on the state were attributed to faulty equipment or lack of maintenance on equipment used by utility companies.

Pacific Gas & Electric has faced several lawsuits related to wildfires that resulted from faulty equipment sparking or igniting a brushfire that could not be contained in time. The utility company sought bankruptcy protection after facing $30 billion in wildfire liabilities.

To establish negligence on the part of the utility company, Plaintiffs must show the at-fault party had a duty of care, breached that duty, and directly caused harm.

In this instance, this could mean demonstrating that a utility company failed to maintain power lines or circuit breakers. Claims such as these can lead to compensation for property damage, personal injury, and other losses victims suffer. In the context of these wildfires, that not only includes the loss of someone’s home but also potential health problems that they may endure as a result of the fire and smoke inhalation.

Make sure to review your home insurance policy to insure that you have sufficient coverage to protect your most important assets.