No, rebuilding your home is not necessary to receive maximum compensation from wildfire insurance. A policyholder who experiences a total loss due to wildfire has the choice of rebuilding on their original property or relocating elsewhere. Instead of your decision to rebuild, your compensation depends on your policy terms, coverage limits, and proper documentation of losses.
Many states, including those prone to wildfires, have laws that protect policyholders after a total loss. You may be able to apply your replacement cost coverage toward purchasing or rebuilding a home in a different location, depending on the terms and limits of your policy. No matter where you rebuild or where you relocate, you're entitled to the benefits provided by your policy. State and policy specifics may vary, so be sure to review your coverage and seek professional advice if you have questions.
The total compensation amount of your wildfire insurance policy is typically based on several types of coverage. A standard policy covers rebuilding or repairing your home, covering your belongings, debris removal, and additional living expenses during displacement. You may also be able to increase your payout beyond standard policy limits when current building codes require more expensive materials or methods than when your home was originally built.
Both your compensation amount and rebuilding decision are influenced by several practical factors:
Our experienced team has over 35 years of expertise in evaluating personal injury cases. We will carefully analyze your specific situation before determining whether or not you may be able to file a wildfire claim with your insurance company. The process is straightforward and requires minimal participation from you. You'll need to provide evidence of the wildfire's damage to your property. If you qualify, we will connect you with an experienced attorney.