Wildfires are a serious, terrifying natural disaster. As reported by the Los Angeles Times, the total cost of the devastating wildfires that hit Southern California in January of 2025 is expected to exceed $250 billion. Of course, California and the Western half of the United States have long faced a heightened risk of wildfires. With that being said, the Gulf Coast region sees thousands of wildfires each year. Homeowners and business owners need to understand what their insurance does—and does not—cover in regard to wildfires. At Insurance Claim HQ, we help people take on the big insurance companies. Here, our New Orleans fire damage attorney provides an overview of the key things to know about wildfire damage claims.
Wildfires Absolutely Impact the Gulf Coast Region
What do you picture when you think of wildfires? Most people think of California or other Western states. While that region is at the highest risk of destructive wildfires, each and every U.S. state saw at least one wildfire in 2023. In the Gulf Coast region, there were more than 10,000 wildfires that burned more than 100,000 acres. It is a risk in our region that is underappreciated. Here is the most comprehensive data on wildfires by state for 2023 from the Insurance Information Institute (III):
- Louisiana: 1,467 wildfires burned 22,103 total acres.
- Arkansas: 147 wildfires burned 5,659 total acres.
- Mississippi: 2,383 wildfires burned 52,508 total acres.
- Georgia: 2,386 wildfires burned 10,330 total acres.
- Alabama: 1,856 wildfires burned 18,335 total acres.
- Florida: 2,730 wildfires burned 99,642 total acres.
Why do so many wildfires happen? There are a wide range of different causes. Wildfires occur when dry vegetation, heat, and an ignition source combine under the right conditions. In Louisiana and elsewhere in the Gulf Coast region, wildfires are often triggered by human activity—such as unattended campfires or sparks from equipment. Though natural causes—such as lightning strikes—can certainly also contribute to wildfire outbreaks. Strong winds and low humidity are the key factors that will determine whether or not the wildfire will spread rapidly to the surrounding area.
Are Wildfires Covered by Homeowners Insurance?
Wildfires can cause devastating damage to homes and property. In Louisiana, most standard homeowners insurance policies do cover wildfire damage. Indeed, fire is generally considered a covered peril. With that being said, policyholders should also review their specific policy terms. There may be coverage limits and potentially even wildfire-specific policy exclusions. Indeed, some insurers may require additional endorsements or separate policies in high-risk areas for wildfire coverage. However, in the Gulf Coast region—which does not have extreme wildfire risk—most typically homeowners policies have coverage for wildfires.
An Overview of Wildfire Insurance
Wildfire insurance typically comes in two broad forms. Some homeowners and business owners will have coverage for wildfires through their general policy. However, other homeowners and business owners may need to obtain wildfire-specific coverage or a wildfire-specific endorsement. It is imperative that you understand your specific coverage. Here are some other key things that policyholders should understand about wildfire insurance:
- You Need to Check Coverage Limits and Deductibles: Insurance policies have coverage limits that determine how much will be paid for damages. Homeowners should ensure their dwelling coverage is sufficient to rebuild their homes at current construction costs.
- Additional Living Expenses (ALE) Coverage: If a wildfire forces homeowners to evacuate or if their home is damaged beyond immediate repair, ALE coverage helps pay for temporary housing, food, and other essential expenses. ALE coverage can be very valuable.
- Proactive Risk Mitigation Can Impact Coverage: Some insurers offer discounts or incentives for homeowners who take preventive measures. Some examples include creating defensible space and using fire-resistant building materials.
Tips for Wildfire Insurance Claims
Tip #1: Make Sure You Understand the Scope of Your Insurance Coverage
A wildfire is scary. If the time ever comes to deal with a bad fire near your property, you will want to know exactly what type of insurance coverage you have for financial protection. Before disaster strikes, all homeowners in New Orleans and elsewhere in the Gulf Coast region should carefully review their insurance policy to understand exactly what is covered. Remember, wildfire damage is typically included in standard homeowners insurance in our particular area of the country. Still, there are many specific issues that you need to look for within the terms of your property insurance policy, including coverage limits, deductibles, and exclusions. Further, it is crucial to know if your policy includes protection for your dwelling, personal belongings, and additional living expenses (ALE) if you are displaced. For homeowners, knowledge is power.
Tip #2: Carefully Document Your Wildfire Damage
If you find yourself in the unfortunate situation of having your home or business burned by a wildfire, safety is the top priority. Make sure that you, your family members, your other loved ones, and pets are safe. Once the scene is safe and there is no longer a safety threat from the wildfire, you should carefully document your damage. Do not take unnecessary risks. While property can be replaced, people cannot. When you can safely do so, you should take clear photographs and videos of all property damage—including the exterior, interior, and personal belongings. If possible, gather before-and-after images to demonstrate the extent of the destruction. You should also create an inventory of lost or damaged items, including descriptions, purchase dates, and estimated values. Finally, you should keep receipts for any temporary repairs or temporary accommodations. The more thorough your documentation, the stronger your claim.
Tip #3: Be Prepared for Negotiations With the Insurance Company
Property insurance companies are for-profit businesses. They want to pay out as little as possible to settle wildfire claims and other fire damage claims. For that reason, you should be prepared to receive a low initial settlement offer from the insurance company. If that does not happen, that is great news. Still, homeowners insurance companies and commercial property insurance companies generally do not lead with their best in the final offer. You should be ready for settlement negotiations with the insurance company. A top-rated New Orleans property insurance lawyer can help you prepare a strong case and represent you in settlement negotiations.
We Help Property Owners Get the Maximum Compensation for Fire Damage
Wildfire damage claims are notoriously complex. It is not uncommon for policyholders to have questions about whether or not they have coverage for a wildfire loss at all. At Insurance Claim HQ, we are here to simplify the claims process and hold insurance companies accountable. You need all available benefits. Our case results demonstrate what we can do for property owners. During a free consultation, our New Orleans property damage lawyers will review your case, answer your questions, and help you develop a strategy focused on getting the maximum insurance benefits.
Contact Our New Orleans Fire Damage Attorney for a Free Case Review
At Insurance Claim HQ, our New Orleans fire damage lawyers are skilled, experienced, and solutions-focused advocates for clients. You need the absolute maximum financial benefits. If your home or business sustained significant damage in a wildfire (or any other type of fire), please do not hesitate to contact us today for a free, no-obligation case review. We provide legal representation to policyholders in New Orleans and throughout the Gulf Coast region.
