What is a Total Loss in a Fire and Smoke Damage Insurance Claim?
The recent Palisades, Eaton, Hurst, and other Los Angeles fires have left many homeowners facing devastating losses. If your home has been destroyed, your property may be declared a “total loss” by your insurance company. But what does this mean, and how can you ensure you receive the compensation you need? At Fire & Smoke Attorneys of California, we specialize in helping wildfire victims navigate their insurance claims after losing their homes.
What Does Total Loss Mean in Insurance?
A total loss occurs when the cost to repair the fire or smoke damage exceeds the property’s actual cash value (ACV). ACV is determined by the condition and age of the property before the damage occurred. If the damage is severe and repair costs surpass the ACV, your insurer will declare the property a total loss and offer an ACV payout instead of funding repairs.
Factors Insurers Consider
Insurance companies evaluate several factors to determine if your home is a total loss, including:
- The severity of fire or smoke damage
- The estimated cost of repairs
- The actual cash value (ACV) of your home
If repair costs exceed the ACV, the property will likely be declared a total loss.
How a Total Loss Affects Your Insurance Claim
When your home is declared a total loss, your payout is based on the ACV, which may not cover the full replacement cost. This often leaves homeowners facing a financial gap, especially when trying to rebuild. If you have a mortgage, your lender may receive a portion of the payout, complicating the process further. Many homeowners affected by the Los Angeles fires find themselves in this difficult situation.
Why You Need Legal Help
Recovering from a total loss after losing your home can feel overwhelming. Insurance companies may delay, deny, or underpay your claim, leaving you struggling to rebuild. At Fire & Smoke Attorneys of California, we are here to help. Our experienced team fights for your rights, ensuring you receive fair compensation. From working with Los Angeles fire public adjusters to negotiating with your insurance provider or mortgage company, we guide you every step of the way.
Contact Us for Help Today
If you’ve lost your home to the Palisades, Eaton, Hurst, or other Los Angeles fires, don’t face this alone.
Contact Fire & Smoke Attorneys of California for a free consultation.
Call us for immediate assistance: (833) 324-5399
We’re here to help you navigate your fire insurance claim, protect your rights, and secure the compensation you need to rebuild your life.