Will Insurance Cover Your Hotel Stay During The Los Angeles Wildfires? Here's How To Check

As the smoke clears from the recent wildfires in LA, vast swathes of one of America's best cities for tourism lay in ruins, while more than 100,000 Angelenos remain displaced from their homes. Since fire-weary residents need a place to live during the rebuilding process, one of their biggest questions right now is likely whether their homeowner's policies cover additional living expenses (or ALEs as they are referred to in the insurance industry). These are additional costs incurred while living away from their usual home, including apartment and furniture rentals or extended stays in Los Angeles hotels, which tend to be on the luxurious side and often don't come cheap.

To clarify your existing ALE coverage, the first thing you should do is print out and review your homeowner's or renter's insurance policy. With this document in hand, call your insurance company to file your claim. During your initial discussion with a company representative, provide as much information as you can about any fire-related losses and confirm the extent of your ALE coverage. Ask if this coverage is subject to any exclusions, limitations, or conditions, and if so, where in the policy document those terms are delineated. While chatting with the representative, record detailed notes in a designated "claim diary" to verify what was said and to serve as a reference if coverage questions arise at a later date. As another form of record-keeping, store all receipts related to your hotel or apartment expenses in a secure location, as you may need to submit these to the insurance company to ensure reimbursement.

After you file your claim, it will be passed along to an insurance adjuster, who will determine your payout amounts based on the value of lost personal belongings, the extent of structural damages, ALEs, and the type of coverage and benefits the policyholder purchased prior to the fire. Unfortunately, a wildfire claim could take several months or years to fully resolve, but you shouldn't have to wait that long to receive your ALE reimbursements. Insurance companies issue periodic payments to policyholders to cover initial and ongoing ALEs, the extent of which will depend on an individual policyholder's terms and the nature/scale of the natural disaster or crisis.

In this case, because California declared a state of emergency in response to the large-scale wildfires, people whose homes were destroyed are entitled to an immediate insurance payout equivalent to one-third the estimated value of their lost personal belongings plus four months of rent coverage. A spokesperson with the California Department of Insurance, Michael Soller, told the LA Times that "Those payments are required whether an adjuster has inspected your home or not." If you have any questions about your ALE reimbursements or you're concerned about insurance fraud, call the Department of Insurance hotline at (800) 927-4357. Those expecting a lengthy rebuilding process who could fully exhaust their ALE coverage should also consider hiring  a public adjuster or attorney to assist with their claim settlement. Want to help those affected by the LA wildfires? Check out our article on using your extra airline miles to make a meaningful difference.