01/11/2025
With the ongoing California wildfires, many survivors experience what experts call a “victim high”—a surge of shock, adrenaline, and determination that propels them through the initial days of devastation. In the immediate aftermath, support often pours in: family and friends offer refuge, while strangers donate essentials like clothes and toothbrushes. But as the ash settles, the harsh reality begins to sink in. Homes are gone, lives are upended, and once the donations are distributed, many are left grappling with the question: What happens next?
This step-by-step guide is based on insights from those who have faced similar losses in the past.
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Contact your homeowners or rental insurance provider to activate your “Loss of Use” coverage:
• This coverage typically allows you to stay in a comparable property for a set period or up to a specific dollar limit, depending on your policy.
• It often provides immediate funds for essentials such as clothing, toiletries, and food.
• Initiating this coverage also starts the claims process for rebuilding your home and recovering personal property costs.
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Register with local shelters, the Red Cross, California FEMA, and other aid agencies:
• These organizations use registration lists to coordinate and distribute aid, ensuring you don’t miss out on available assistance.
• This step is especially critical if FEMA is activated, which is likely given the scale of devastation.
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Create a detailed personal property inventory for your insurance claim:
• Begin by documenting items as you remember them. Keep a running list on your phone or a notepad for convenience.
• Organize the list by room, noting every item and its replacement cost (not discounted prices or sale costs—use the current full retail price).
• Be thorough. Even if your items exceed your policy limits, they can still be claimed as a tax-deductible loss.
This process is emotional and challenging—allow yourself to grieve as you go.
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FOR THOSE FACING IMMINENT FIRE DANGER BUT NOT YET EVACUATED
• Use your phone to record a room-by-room video of your home, capturing all belongings.
• Save the digital file to a secure cloud storage service for easy access.
• This documentation can serve as vital evidence for insurance claims to ensure proper reimbursement.
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Cancel or pause unnecessary subscriptions and services:
• Contact your utility providers (electric, gas, TV, landline) to freeze or cancel services.
• Update or cancel newspaper deliveries—consider redirecting to a PO Box if needed.
• Review and cancel any non-essential subscriptions to reduce expenses.
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Set up a PO Box and forward your mail:
• Secure a PO Box and redirect all incoming mail to this address.
• Use the PO Box as your primary mailing address on all forms and documents you complete moving forward.
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Begin your search for a long-term rental:
• Look for a property that suits your needs and preferences; aim for a “like property” comparable to your previous home, as this is typically covered by your insurance.
• Coordinate with your insurance company to ensure rental payments are made directly using your “Loss of Use” funds.
• Plan for a rental period of 1–2 years, but avoid signing a long-term lease right away, as circumstances may change.
• Continue paying your mortgage as a current mortgage affects continued insurance coverage.
• Do not pay mortgage and rent at the same time, leave the rent to the insurance to pay directly.
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Obtain necessary permits for recovery and rebuilding:
• Debris Removal: Most jurisdictions require a permit for debris removal. This is typically covered by insurance, but you may need to advocate for it with your provider—be persistent.
• Erosion Control: If your property is on a slope, you’ll need permits for erosion control measures to prevent further damage that you may be responsible for.
• Temporary Power/Trailer Permit: Secure permits early for a temporary power pole or trailer on-site to facilitate the rebuilding process.
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Understand and leverage tax benefits for your losses:
• You can typically claim the monetary loss of your personal property, subtracting any reimbursement from your insurance company.
• Consult a tax professional to understand the specific laws, as you may be able to carry losses back 2–5 years and recover a significant portion of previously paid taxes.
• This could result in a substantial refund to help with your recovery.
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Don’t Overlook These Action Items:
Save All Receipts: Keep receipts for every purchase, no matter how small (e.g., hairbrushes, phone chargers). Many of these incidentals may be covered under your “Loss of Use” insurance.
Contact All Relevant Insurance Providers:
• File claims with your car insurance if your vehicle was damaged.
• Address any specialty insurance for unique or high-value items (e.g., art, jewelry, or collectibles).
Accept Help: This is the time to set aside pride and lean on others. Allow friends, family, and even strangers to support you—whether it’s gifting items, running errands, watching your kids or pets, or lending a car. Don’t hesitate to ask for what you need, even if it’s as simple as a shirt off their back. Remember, a less-stressed you is a more productive you.
Network with Others: Connect with others going through the rebuilding process. Sharing experiences and resources can save time and provide valuable insights. Lean on your strengths, benefit from others’ expertise, and build a support system for this long recovery journey.
By staying organized and proactive, you can ease the challenges of recovery and rebuilding.
