Fire Claims Guide

Handle origin-and-cause questions, smoke/soot impacts, debris removal, and valuation of structure and contents.

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    Overview

    Fire claims involve structural damage, smoke/soot contamination, and potential origin-and-cause investigations. Coverage may include debris removal, code upgrades, ALE/LOU (loss of use), and personal property replacement.

    Key Rules & Requirements

    • Origin and cause: Cooperate with investigations; arson defenses require reasonable basis and timely communication.
    • Smoke and soot: Damage from smoke, ash, and odor is generally covered even without direct flame contact.
    • Debris removal: Usually covered up to a percentage of Coverage A/C, with additional limits after total loss.
    • Code compliance: Ordinance or law coverage can fund upgrades required by building code after a fire.
    • Contents valuation: Most policies pay ACV first and RCV after replacement receipts are provided.

    Step-by-Step Guidance

    1. Secure the site, board openings, and notify the carrier immediately.
    2. Request a certified smoke/soot cleaning plan for structure and contents; avoid premature cleaning that could alter evidence.
    3. Invite your contractor to the inspection to document structural and mechanical impacts (HVAC, electrical, plumbing).
    4. Prepare a room-by-room inventory of damaged contents with age, condition, and replacement pricing.
    5. Obtain an RCV estimate for the structure and identify any code-required upgrades.
    6. Track ALE/LOU expenses (temporary housing, meals) with receipts and policy limits in mind.
    7. Request payment of undisputed structure ACV, debris removal allowances, and ALE advances promptly.

    Required Documentation

    • Fire department report and any photos/video from responders.
    • Contractor estimate with line items for demolition, cleaning, deodorization, and rebuild.
    • Industrial hygienist or restoration contractor soot/smoke testing and cleaning protocol.
    • Contents inventory spreadsheet with pricing sources.
    • Receipts for ALE/LOU, board-up, and debris removal.
    • Permits and code upgrade notices from local authorities.

    Common Insurer Tactics

    • Delaying payments while pursuing lengthy origin-and-cause reviews without clear evidence.
    • Limiting smoke cleaning to visible damage and excluding hidden cavities or HVAC systems.
    • Applying heavy depreciation to contents or using outdated price sources.
    • Denying code upgrades despite authority requirements.

    Red Flags to Watch For

    • No written explanation for withholding undisputed ACV during investigations.
    • Refusal to test for soot in adjacent rooms or ductwork.
    • Estimates that exclude deodorization or sealing of surfaces.
    • Delays in issuing ALE despite uninhabitable conditions.

    Best Practices for Policyholders

    • Keep samples of materials and HVAC filters showing soot for evidence.
    • Use professional inventory tools to speed contents valuation and reduce depreciation disputes.
    • Ask the carrier to identify all undisputed amounts and pay them immediately.
    • Request reinspection after demolition to capture hidden structural impacts.
    • Clarify ALE limits early and submit receipts weekly to avoid disruption.
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