A Guide to Understanding Insurance Policies for Wildfire-Related Losses

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Wildfires pose a significant threat to homeowners, renters, and businesses, making it essential to understand the types of insurance policies available and their specific provisions. This guide highlights the primary policies that provide protection against wildfire-related losses and outlines the critical coverages and considerations for policyholders. Jeff Bolender, Esq.

Types of Insurance Policies for Wildfires

1. Homeowners (HO) Policies

The most common type of insurance for residential properties, HO policies offer comprehensive coverage for:

  • Dwelling: Protects the physical structure of the home.
  • Other Structures: Covers detached structures like garages, sheds, and fences.
  • Personal Belongings: Protects items like furniture, clothing, electronics, and appliances.
  • Additional Living Expenses (ALE): Pays for temporary housing and living costs if the home is uninhabitable.
  • Debris Removal: Covers the cost of clearing fire debris from the property.
  • Liability Protection: Protects against claims of bodily injury or property damage to others.

2. Renters Insurance

Designed specifically for tenants, renters insurance protects personal belongings against damage from perils like fire, smoke, theft, and vandalism.

  • While the structure itself is covered by the landlord’s policy, renters insurance is vital for safeguarding personal possessions from wildfire damage.

3. Commercial Policies

Tailored to businesses, commercial insurance policies cover:

  • Property Damage: Protection for buildings, equipment, and inventory.
  • Business Interruption Losses: Covers lost income and ongoing expenses if operations are disrupted by a wildfire.
  • Liability Claims: Protects businesses against lawsuits for injuries or property damage related to their operations.

Commercial policies are more complex than homeowners insurance and are designed to address the unique risks businesses face.

Key Coverages and Provisions

Dwelling Coverage

This protects the physical structure of the home. It’s critical to ensure that the coverage limit is sufficient to cover the full cost of rebuilding. Obtaining updated reconstruction cost estimates can help homeowners avoid the risk of underinsurance.

Other Structures Coverage

Covers detached structures such as garages, sheds, and fences. Typically, this coverage is a percentage of the dwelling coverage limit.

Personal Property Coverage

Protects personal belongings, with coverage limits usually set as a percentage of the dwelling coverage. However, sub-limits may apply to high-value items like jewelry, artwork, and collectibles.

Additional Living Expenses (ALE)

ALE coverage helps pay for temporary housing, meals, transportation, and other costs if the home is uninhabitable due to wildfire damage. California law requires insurers to provide at least four months of ALE coverage following a declared state of emergency.

Debris Removal Coverage

Covers the cost of clearing debris after a wildfire. Given the high costs of debris removal, understanding policy limits and requirements is crucial.

Ordinance or Law Coverage

Covers additional costs required to rebuild in compliance with current building codes. This is particularly significant in California, where stricter codes often apply to wildfire-prone areas.

Landscaping Coverage

Provides protection for trees, shrubs, plants, and other landscaping elements damaged by fire.

Understanding Policy Exclusions and Limitations

It’s essential for policyholders to carefully review their policies for exclusions or limitations. Common exclusions might include damage caused by fire retardants or specific types of personal property. Additionally, sub-limits may apply to certain categories of belongings, such as jewelry or high-value electronics.

Wildfire Insurance in California: Special Rules and Resources

One-Year Moratorium on Policy Cancellations

California law requires insurers to impose a one-year moratorium on policy cancellations in ZIP codes affected by wildfires after a state of emergency.

California FAIR Plan

For homeowners unable to secure coverage in the traditional market, the California FAIR Plan serves as a safety net, offering essential coverage—though often at higher premiums.

Climate Change Considerations

Recent regulations allow insurers to incorporate climate change into their pricing models, enabling more accurate risk assessments and encouraging insurers to remain in the California market.

Working with Experts to Navigate Claims

The complexity of wildfire insurance claims often necessitates working with professionals to ensure fair compensation:

  • Public Adjusters: Assist policyholders in negotiating claims with insurers.
  • Building Experts: Provide accurate reconstruction cost estimates.
  • Contents Experts: Help document and value personal property losses.

Preparation is Key

By understanding the different insurance policies and their provisions, homeowners, renters, and businesses can make informed decisions about their coverage. Proactive steps—like obtaining sufficient dwelling coverage, reviewing exclusions, and consulting with experts—can ensure better preparedness to handle wildfire-related claims and secure fair compensation.

Businesses May Not Be Aware of the Assets They Have in Intellectual Property

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There are so many advantages to owning your own business, from the flexibility of making your own schedule to making your own money and deciding what to do with the resulting profits—to the excitement of creating a business model, making products, hiring a team, and managing it all your way. The challenges can be enormous, but in the end so are the rewards. Because of this, asset protection is crucial, and this may include some ‘intangibles’ too, such as intellectual property.

If you are lucky, you may have the potential of earning an unlimited income—and depending on your business acumen you may accumulate many impressive assets in a short amount of time. Among those assets likely are at least one or two ‘pieces’ of intellectual property. For most business owners, this starts with the copyright which may be applied for to protect what are termed “expressions of art,” but may be architectural structures, software, or more. Patents may be applied for to protect complex designs and new products.

Trademarks are critical too for so many businesses as they may encompass logos, symbols to appear on letterhead and nearly everything attributed to your company, as well as service marks (a subset of trademarks) which indicate the service that you provide to the public. This type of intellectual property is usually created at the beginning as part of your company’s foundation and may be with you for the lifetime of your business.

For some, branding mechanisms maybe very simple, and you may not realize the value or the need for protection of these types of intellectual property. You are the rightful owner of your intellectual property upon its inception; however, you could be left out in the cold if a legal dispute were to erupt over its use. Imagine though if someone were to steal your logo or idea! Without the proper registration, and the help of a skilled intellectual property attorney, you could be out of luck when it comes to pursuing legal action. And when you are considering whether you even need trademarks or logos or ‘branding,’ think about how some of the most basic symbols stand behind worldwide leading companies such as Nike or McDonald’s.

The Bolender Law Firm can assist you in all intellectual property matters. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

 

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Exiting Business Partners & Confidentiality Agreements

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If you have just opened a new business, you may be working with a partner—or you may have multiple business partners involved, all bolstering your business up in different ways, complementing each other with different skill sets. Some of us enter into business with a partner because we have been working on a business idea with them for years; in fact, you may have even gone to grade school or high school with your business partner and the company you now own together may have been a lifelong dream as you created a particular product or service and collaborated throughout the years to refine it.

 

You may have inherited a family business and learned to adapt to working with business partners who were already there. You may have also brought in investors or promoted employees to partners due to their impeccable level of work and personal investment in the company.

No matter your relationship, and no matter how solid or friendly it may be from the beginning, a business contract is a must. Not only will this outline the most basic details of your business partnership – from who is involved, what their titles and duties are, including financial information and profit disbursement details—but you can handle some potential planning for the future that could be difficult or awkward to handle in the moment.

Mapping out dispute resolution clauses are one great example. At the time you are writing your contract, chances are you’re not angry or put out with each other, but should conflict or issues arise, you will already have an outline for how a dispute will be handled, whether in litigation, arbitration, or mediation, along with what county to meet in, and even who will pay attorney’s fees. Beyond that, however, there are other important issues to address in a contract, such as the exit strategy. This is again, a topic that can be difficult to handle at time, so with an outline already delivered in the contract, everyone knows what to expect.

With an exit strategy, you can make plans for nearly everything—from what happens if you decide to leave the company, if you die, if you get divorced, to discussion regarding mergers, buyouts, and more. Along with that, it can be critical to the health of a business to have a confidentiality clause that ensures all trade secrets stay where they belong: at the office.

Do you need legal assistance with a partnership or business dispute? If so, contact the Bolender Law Firm. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

The Bolender Law Firm will advocate on behalf of clients through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

Business Disputes: Parties Are More in Control During Mediation

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If you have become involved in legal disputes or business disputes with another party, the situation may be so stressful that you feel like your life is spinning out of control, consumed by conversations and concerns over the conflict, as well as worrying over pending court dates and all that could happen. In many of these cases, the tussle between everyone involved becomes little more than the urge to win—and later, many just want it all to be over.

In mediation, motivation plays a large part in the success of reaching an agreement that everyone can live with. Voluntary mediation means that the parties involved are amenable to reaching a settlement and having an open discussion about the problems at hand, even if that is not particularly easy. With the help of a neutral third-party such as the mediator—prodding the discussion along and offering encouragement and new ideas for communication during a stalemate too—those involved may find themselves not only saving money, but exorbitant amounts of time too; in fact, a legal dispute may be over in hours rather than months.

The mediation gives everyone involved in a legal dispute greater latitude, in comparison to the structure of the courtroom and the public in attendance. Mediation is confidential, unlike a courtroom setting or case—and basically the individuals involved can sit down and talk in a relaxed manner. The mediator does not decide or sway the case in any direction, and is there when help is needed for clarification, new direction, or more.

The individuals involved in the mediation can take the reins in pointing out why they are at odds, what they need from the other side, what they would agree on, and more. Working from a strong starting point, others involved can also explain their stance and move on to negotiating the finer points of a settlement. The mediator sometimes needs to step in further toward the end when the parties in dispute may have begun to grow weary or frustrated and begin to lose sight of the end goal.

In the end, the mediator draws up all the paperwork to be signed and submitted to the court. Once everyone involved has given their signatures, the document is binding, and everyone is expected to put the agreed upon resolutions into action.

The Bolender Law Firm will advocate on behalf of clients through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

Insurers Acting in Bad Faith Demonstrate the Highest Form of Negligence

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Finances may be a distressing topic as property damage/repair bills or medical bills (or all of it, all at once) continue to flow in at a distressing rate and your insurance company seems to be practicing negligence. Without a prompt settlement from an insurer looming, you may not be able to pay for anything upfront and this can be extremely distressing if you still need to have more medical procedures performed or need to buy a new car, have more repairs made—or are waiting on something like a homeowner’s claim to be paid and are trying to make your home liveable again.

If your insurance settlement seems to be delayed or tied up in red tape for some reason, you may be wondering how long you can hold on before many different aspects of your life begin to fall apart further; however, if you then find out that you aren’t just dealing with normal delays but rather a full-blown bad faith issue, it is time to consult with an experienced insurance lawyer as soon as possible to get answers, and results—even if you must file a bad faith insurance lawsuit.

Without a settlement, you may not be able to pay for anything. This could be further exacerbated by the inability to go back to work if you have been injured and unable to return whether temporarily or permanently. While just a short time ago you may have had no problem at all paying your bills and enjoying some disposable income too, suddenly you may have trouble just supporting yourself and your family enough to buy the basics.

Bad faith practices demonstrate an enormous amount of negligence because people have the potential to be devastated by such behavior. While individuals profiting from insurance premiums can live in great comfort, some policyholders—the very ones who helped those in the insurance industry accumulate such wealth—could be devasted on several levels when the agreement that was made and signed off on in an insurance policy is not maintained. If you are enduring such hardships, it is imperative to call on an experienced attorney from the Bolender Law Firm as soon as possible.

Typical red flags include:

  • Outright denials with very detail in explanation
  • Delays which may be accompanied by unreasonable excuses
  • Low-ball offers
  • Harassment and intimidation toward you and any possible witnesses
  • Requests for excessive documentation
  • Accusations of fraud

If you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm. If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

partnership contracts

Partnership Contracts Can Protect the Health of a Business

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In your lifetime overall, and in your life as a business owner, you will be responsible for creating, reading, authorizing, and signing a wide range of contracts, from vendor agreements to partnership contracts. Such action begins when you found your company and form your corporation, LLC, or whatever type of organization or structure you have chosen. From there it may seem as if the contracts just never stop. If for example, you are opening a restaurant, once you choose vendors, they will be showing up with a multitude of contracts to be signed. Once you have decided on a site for your business, more contracts arrive in the form of real estate or lease agreements, insurance policies, and more.

The partnership contract, however, is one of the most important. Not unlike a marriage, the person you enter a corporate relationship with could have the ability to make or break your business—and your livelihood too. Conversely, this person—or group of people—could also be the catalyst for changing your life in every way as you put a successful business model into motion, create intellectual property such as the trademark and service mark, hire a team, develop marketing to bring in the clients, and so much more.

Strong partnership contracts can protect your business from ruin, as well as helping you to know what to expect in the future as the inevitable changes will occur. On inception of your company, the partnership contract should outline who is involved in the company and in what capacity. This means including their job titles, duties, and pay—especially profit distributions and what percentage they will receive, and when. These items are some of the most important as they help fend off disagreements or resentments later about who is doing what.

The partnership agreement should also detail exit strategies. While this may seem like an awkward subject to bring up, it is highly likely that there will be changes of some sort in the future—and especially if there are multiple business partners. Developing an exit strategy while everyone is still invested and getting along allows you to create a sound plan for handling resignations, buy-out strategies, and more, to include what happens if one partner dies.

And just as important is the dispute resolution clause, again, allowing for planning before anyone has ended up in dispute. Being able to plan ahead of time means deciding on whether to use litigation, arbitration, or mediation in the event of serious issues, along with deciding where such issues will be resolved—and who will pay attorney’s fees if there are any.

The Bolender Law Firm can assist you in all intellectual property matters. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

bad faith

Bad Faith Practices May Bankrupt Policyholders with Valid Claims

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If you have filed a claim with your insurance company, chances are you are waiting to hear back as soon as possible, as this is not a situation you have—or are able to—put on the back burner–even though it may seem like that is exactly what the insurance company is trying to do to you while you go bankrupt. The differences between an insurer acting in good faith and one doing the opposite are usually glaringly different, and quickly apparent too.

In most cases, an insurance adjuster (whether from your company or that of another party who may have caused property damage or physical injury to you by way of an accident) will be calling right away to gather facts about a case and open an investigation to oversee expedient resolution for you as a policyholder. In some cases, however, an insurance company may be disorganized on the job or practicing bad faith altogether. There are varying degrees of this behavior, but should you pursue a lawsuit against them, any of this bad behavior can land them in hot water in court.

In a normal situation, a typical homeowner’s claim or a car accident claim, for example, should be an open and closed case, assuming there are no problems on your end. If this is not happening, you may be confused and even on the verge of panic regarding your finances. This may be especially true if you have been forced to front out large sums of money to pay for medical bills due to physical injury or property damage.

Medical issues are the number one reason consumers in the US file for bankruptcy each year, with car accident injuries playing a large role. Such an unexpected event is in many cases one of the most traumatic events that can happen in a lifetime, and to have physical pain exacerbated by financial worries may seem unbearable. If the insurance company is acting in bad faith, you may feel like you have nowhere to turn as you are experiencing unreasonable delays, denials that make no sense, and varying forms of harassment—even to include demands like ongoing requests for excessive documentation so they can prove your claim in not valid but rather, motivated by a need for money.

If you do receive a settlement, a large portion of that will probably go to those you are indebted to, depending on your claim. If you have been injured, you may even need to reserve some of those funds for more procedures or surgeries in the future. If you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm.

If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

 

Intellectual Property May Be Intangible, But Invaluable

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So many ingredients must fall into place to create a thriving business today—and while putting together an initially intangible business model and then watching it (and controlling it) as it unfolds can be a slightly terrifying experience, it can ultimately be one of the most rewarding, both personally and financially. It may take years or even decades to build up a nest-egg for yourself and your commercial holdings, but there are some ways you can begin to create assets from the beginning. Intellectual property is a perfect example, and it may be critical to the success of your business.

Depending on what your business offers to the public, you may need a trademark or a service mark to begin; in fact, a trademark can be critical to building a foundation as you create a logo and both existing and potential customers become familiar with your products and your services. Your trademark could be with you for a very long time—just consider how long some of the most popular apparel or fast-food restaurants have had the same logo!

Intellectual property is in many ways completely intangible if you own a trademark or a service mark, and indeed these items are necessary and may prove to be invaluable; however, items such as copyrights may protect items that are very available such as a screenplay which you can hold and read, or an architectural work that has obvious tangible value. The results of patents are extremely tangible too, obviously, when beyond the concept and design phase.

Any intellectual property you create is yours upon inception. Technically, you are the owner of whatever logo or invention or artistic expression you may bring into existence; however, that does not mean you are protected! Many individuals are surprisingly blatant about stealing—and using—the work of others. This may include others or companies from different countries also. Applying for registration and licensing is critical but can be complex, time-consuming, sometimes costly, and may take months or even years to come through in some cases. Because of this, and the value intellectual property has to your business, it is critical to work with a skilled intellectual property attorney.

The Bolender Law Firm can assist you in all intellectual property matters. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

Mediation Could Allow Everyone to Move on with Their Lives More Quickly

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Most private individuals enjoy very little about being involved in a legal dispute or spending time in the courtroom. While tempers may run high in the beginning and the urge is there to fight, to sue, and to win, being in a highly adversarial situation and conflict can be extremely draining. While litigation does have its place and sometimes is the only solution for settling a serious issue, many individuals may overlook mediation, and miss out on a much more streamlined way to solve a problem. Not only that, parties who agree to mediation are usually much more motivated to reach a settlement—with the help of a neutral mediator who is able to assist in clarifying details and keeping the process moving along with a good flow.

Not only does mediation help parties in dispute move on more quickly, but the pace at which they reach a resolution could also be exponentially faster. Rather than spending weeks or even months tied up in scheduling with the courts, postponements, and more, the mediator usually meets with everyone involved ahead of time, gains an understanding of the issues at hand and what originally led to the dispute. The mediator is also in charge of setting and time and location for the proceedings—usually offering flexible scheduling and a more relaxed and casual setting that is conducive to an open discussion. In some cases, mediators may even offer to meet with everyone after hours to make up for busy schedules.

Other benefits of mediation are that it is completely confidential, and the parties involved in the dispute have complete control over what happens, while the mediator may step in intermittently to help. And while mediation may not be free, the costs in comparison to that of litigation are exponentially less. The timeframe is exponentially less too; in fact, an agreement could be made within mere hours. Mediation usually works, and it can also be a great benefit for the future as relationships that may have already been long-standing or preserved.

The Bolender Law Firm will advocate on behalf of clients through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

 

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Understanding the Role of the Witness in a Car Accident Case

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If you have recently been in a car accident or even if you were just witness to a terrible wreck, you may be going through one of the toughest times of your life; in fact, even a minor fender bender can cause trauma too as you may keep reliving the event in your mind, from the surprise of the crash to hearing the sound of squealing tires, breaking glass, and feeling the subsequent flow of adrenaline that can take quite some time to subside.

More serious accidents may result in emotional harm, as well as causing major physical injuries such as concussions or traumatic brain injuries which could be long-lasting or even permanent, spinal injuries which could result in partial or complete paralysis, soft tissue damage, broken arms and legs requiring surgery, cuts and contusions, and much more.

If you have filed a claim against the other party’s insurance due to their negligence, you may be very concerned about the outcome. And witnesses could play a critical role; in fact, they may make or break a case due to what they saw. Usually, such individuals can offer an expanded view of the incident. This can be incredibly helpful, as otherwise, it is just your word against that of the other party—although evidence may be in place that is compelling too.

If it looks like your case is going to trial, you may be relying on one or more individuals who were there and saw what happened during the accident. The key is to approach them on the scene, directly afterward, as these are people you may never see again. That may not have been possible if you were seriously injured, and witnesses could simply walk away with no one ever even knowing they were there unless law enforcement spoke with them and asked for their contact information, including it in the police report.

It is important to understand that the witness is not under any obligation to testify in your case. They are not legally obligated to give you their information, speak with you further, or unfortunately, help you in any way. The hope is that most people will understand how important their viewpoint is, especially because they should be neutral with absolutely nothing to gain, giving a third-party report.

If you need help reviewing your insurance policy, or if you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm.  If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate levels. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!