Wildfires in California leave businesses and family homes destroyed. Worse yet are the personal injury cases we’ve seen. But the claims process alone is a nightmare for many small business owners and families. At The Kaufman Law Firm, wildfire litigation cases often come down to this: you want your insurance benefits paid correctly and you want the responsible party held accountable when negligence or unsafe infrastructure played a role.
This guide walks through the big moving parts: insurance, utility liability and lawsuits. It is general information based on our 30+ years of industry experience, not legal advice for your specific situation.
If you ever need specific advice for your case, please contact The Kaufman Law Firm for a 100% free consultation.
The First Week After A Wildfire Usually Shapes The Whole Claim
The first week matters for one simple reason. Paperwork becomes the story later.
If you are displaced, start a running log of where you stayed, what you paid and what you had to replace. Save receipts. Screenshot bank transactions. If you are safe enough to do it, take photos and video of the property and the surrounding area, even if the damage looks obvious.
This is also the point where many people get pushed into fast decisions by stress, adjusters and deadlines. Slow down where you can. If something feels unclear, ask for it in writing.
Insurance Comes First Because It Is The Fastest Money Available
Most families cannot wait for litigation to move. Insurance is designed to respond first.
In a recent LMI podcast episode featuring our own Martin J Kaufman, the conversation focused on how wildfire victims often have to navigate insurance and FEMA right away, long before any investigation is finished.
That creates a strange reality for wildfire victims…you can be fighting for coverage while the cause of the fire is still being investigated. That is often considered normal in wildfire cases.
Additional Living Expense In California Is Bigger Than Many People Realize
If your home is uninhabitable after a covered loss tied to a declared state of emergency, California law gives meaningful time for Additional Living Expense coverage.
Insurance Code section 2060 says ALE coverage must be for a period of no less than 24 months from the inception of the loss in that situation. The statute also allows an extension of up to 12 additional months, with additional six month extensions for good cause.
The California Department of Insurance has also put out consumer guidance on what ALE can include and how those time limits work in the real world.
One practical warning. Many policies still have a dollar cap for ALE. You can have time available and still run out of money under the policy limit. That is where documentation and early planning matters.
Replacement Cost And Rebuilding Timelines Have Built-In Protections After Disasters
After a declared disaster, California policyholders often get more time to collect full replacement cost benefits than they expect.
A California Department of Insurance summary of post-disaster laws explains that for a state of emergency, no time limit of less than 36 months from the date the first actual cash value payment is made can be placed on collecting full replacement cost, and it notes six month extensions for good cause.California Department of Insurance
The same CDI notice also addresses a point people argue about constantly after a total loss. You can rebuild elsewhere or buy another home and still pursue replacement cost benefits under certain conditions, subject to the policy terms and limits.California Department of Insurance
Underinsurance Is Common In Wildfires And It Changes The Legal Strategy
A painful pattern in California is that people discover after the fire that they did not have enough coverage. Sometimes the dwelling limit is too low. Sometimes the contents coverage is far below what it takes to replace a lifetime of belongings. Sometimes the policy has exclusions that only become visible when you try to use it.
Episode 288 also flags this issue directly, describing how many people face underinsurance or no coverage at all after major fires.LMI Podcast
Underinsurance does not end your options. It changes them. When insurance cannot make you whole, third-party claims become more important.
Why Utility Companies Show Up In Wildfire Litigation So Often
California has seen many fires linked to utility infrastructure, including power line failures, grid maintenance issues and vegetation management problems near equipment.
The Kaufman Law Firm’s wildfire practice emphasizes this issue plainly, noting that utility negligence can be a key cause of wildfires and that those companies can be held liable when failures contribute to a fire.
To prove a case against a utility, the investigation matters. Fire origin and cause experts, engineering review, weather data, line data, inspection records and vegetation records can all become central pieces of evidence.
Negligence Claims Versus Inverse Condemnation Claims
In wildfire cases, people hear two legal phrases a lot: negligence and inverse condemnation.
In Episode 288 of the LMI podcast, Martin Kaufman himself sat down to discuss legal strategies that can include negligence claims and prospective inverse condemnation lawsuits in wildfire matters.
Negligence focuses on conduct. What did the utility company do? Did they maintain equipment and clear vegetation around lines?
Inverse condemnation is different. It is tied to the idea that property should not bear the cost of damage caused by a public improvement serving the public. California courts have applied inverse condemnation principles in cases involving utility-caused fire damage, and Barham v. Southern California Edison is often cited in discussions of that doctrine.
Which theory fits depends on the facts of your case, and what the potentially ongoing investigation shows.
The California Wildfire Fund And What People Think It Does
People hear about the California Wildfire Fund and assume it is a pool of money that pays victims directly.
The reality is more complicated for victims. The Fund itself explains that it is authorized to distribute funds to participating utility companies after they have paid or settled eligible claims arising from a covered wildfire. It also explains that a covered wildfire is one ignited on or after July 12, 2019 and caused by a participating utility.
The Office of Energy Infrastructure Safety describes AB 1054 as creating mandated safety reforms and the California Wildfire Fund, with certificates tied to whether the utility acted reasonably as determined through CPUC-related processes.
In plain language, this means the Fund can matter to how utilities handle and finance wildfire liability. It does not remove your need to prove your damages. It does not replace your insurance claim.
Lawsuits Take Time So Deadlines Matter More Than People Expect
Wildfire litigation can move for years. Investigations take time. Utility data fights take time. Coordination across many victims takes time. Court scheduling takes time.
Deadlines still run.
California Courts’ self-help guidance lists a two-year statute of limitations for personal injury and a three-year statute of limitations for property damage in many common situations:
Self-Help Guide to the California Courts
There are exceptions and special rules, especially when government entities are involved or when the harm is discovered later. That is where a quick legal consult can protect your options.
What Damages Can Be Part Of A Wildfire Case
Wildfire losses are rarely just one thing.
Property damage claims often include structure loss, contents loss, and the secondary costs that follow, including relocation and rebuild-related expenses. Our wildfire and property damage pages discuss these categories and the reality that disputes with insurers and third-party negligence claims can sit side by side.
Business owners can face shutdowns and lost income. On our business interruption page, we describe claims tied to lost income and continuing expenses like payroll, rent, and utilities during downtime.
Victims of a wildfire can also suffer physical harm and lasting health effects from burns or smoke exposure. We describe wildfire injury claims in terms of medical bills, lost wages, pain and sufferin,g and long-term complications. And in the worst cases, wildfire litigation includes wrongful death claims for families.
What To Do If You Think A Utility Or Another Third Party Is Responsible
If you suspect a third party caused the fire, treat your case like it will be tested later.
Document everything you can. Keep your claim materials organized. Avoid throwing away damaged items until you have guidance, because contents and property conditions can become evidence. If you receive cleanup or debris removal notices, save them.
Also, understand that utilities and insurers are often collecting information early. You should, too.
Talk With A Lawyer Early If Any Of This Feels Bigger Than Insurance
Some wildfire claims stay in the insurance lane. Many do not.
If your loss is severe, if you are underinsured, if you are being pushed into a fast settlement, or if there is a real question about utility involvement, you want clarity early so you do not miss deadlines, and you do not lock yourself into a bad number.
The Kaufman Law Firm handles wildfire litigation, including property damage, utility negligence, business interruption, smoke exposure injuries, and wrongful death claims.
If you want to talk through your situation, you can call (213) 239-9400 for a free consultation.
