When a utility starts a wildfire: your options beyond the insurance claim

Two different paths to recovery

After a wildfire, most families start with their own insurance policy. That claim is based on the contract you have with your insurer. When a fire was caused by a utility's equipment, there may be a second path: a claim against the utility itself for the harm the fire caused.

The two paths work differently. Your own insurer is bound by the terms of your policy. A responsible utility may owe compensation for losses that go beyond the policy, such as uninsured property, the gap between your coverage and the true cost to rebuild, and in some cases other harm the fire caused.

How utilities can be held responsible

Investigators look at whether power lines, transformers, poles or other equipment started or contributed to a fire, and whether the utility properly maintained its equipment and cleared vegetation. California courts have allowed property owners to pursue utilities under several legal theories, depending on the facts. Investigations by fire agencies and regulators can take a long time, and their findings may be important evidence.

What a utility claim may include

• Losses your insurance didn't cover, including amounts above your policy limits
• Damage to landscaping, trees and other property
• Costs of displacement not fully covered by your policy
• Lost business income for business owners
• Personal injury claims for anyone who was seriously injured
• Wrongful death claims for families who lost a loved one

How insurance and utility claims interact

Pursuing your insurance claim doesn't usually prevent you from pursuing the utility. However, your insurer may have rights to recover what it paid you from the responsible party, and that can affect how your own claim against the utility is structured. Coordinating the two claims helps make sure nothing is left on the table and nothing is counted twice.

Steps that protect your rights

• Keep pursuing your insurance claim; don't wait on the outcome of an investigation
• Preserve photos, videos and records of your property before and after the fire
• Keep every receipt and record of expenses and losses
• Save any notices from the utility, fire agencies or government programs
• Be careful about signing releases or accepting payments from any party before you understand their effect
• Ask a lawyer about deadlines, which may differ from the deadlines in your policy

What the investigation looks at

Utility wildfire cases often turn on technical questions: what equipment was in the area, how it was maintained and inspected, whether vegetation was cleared, what the weather and wind conditions were, and whether the utility shut off power when conditions called for it. Records from the utility, fire agencies and independent investigators can all be important. Because evidence can be altered or lost as equipment is repaired or replaced, steps to preserve it are often taken early. People with damaged property can help by keeping their own photos and records, and by noting anything they saw or heard as the fire began.

For families and businesses alike

Homeowners, renters, landlords and business owners can all be affected by a utility-caused fire. Business owners may have losses such as closure, spoiled inventory or lost customers that their policy covers only in part. Renters may have lost belongings without much insurance at all. Each situation is different, but the same question applies: what did the fire cost you, and who should be responsible for that cost?

Getting advice early

Utility wildfire cases often involve many affected families, complex technical evidence and companies with significant resources. Understanding causation, meaning how and where a fire started, is central to these claims. If you believe a utility's equipment may be responsible for a fire that damaged your home or business, a free review can help you understand whether you have a claim and how it fits with your insurance recovery.

This article is general information about California law, not legal advice. Every situation is different, and reading it does not create an attorney-client relationship. For advice about your situation, talk with a lawyer.