When Fire Insurance Adjusters Don’t Play Fair: Your Rights as a Policyholder

In early 2025, devastating wildfires tore through Southern California, destroying thousands of homes and leaving families to pick up the pieces. Hard-hit areas like Altadena and Pacific Palisades saw entire neighborhoods reduced to ash, with lives lost and communities forever changed.

For many survivors, the nightmare didn’t end when the flames died down. Instead of receiving the financial support they expected, homeowners are now battling insurance companies that delay payments, undervalue damages, or outright deny legitimate claims. If you’re facing a similar situation, it’s important to know that you have rights—and you don’t have to accept an unfair settlement.

At William D. Shapiro Law, Inc., our experienced California insurance bad faith lawyers understand that insurance companies don’t always play fair after a fire. If you suffered a loss from a wildfire or a home fire, we can help. 

The Problem: How Insurance Adjusters Undervalue or Deny Claims

After a fire, insurance adjusters assess your loss and determine what the company will pay. In a fair system, they would honor your policy’s terms and provide the funds you need to rebuild. But in reality, some adjusters act in bad faith, and they use specific tactics to reduce what they pay out.

Here’s how they do it:

1. Lowballing the Damage Estimate

Many homeowners are shocked when the insurance check doesn’t come close to covering their losses. Adjusters often underestimate the cost of repairs or rebuilding, using outdated pricing or ignoring critical details about your property.

2. Delaying the Process

After a fire, you need money quickly to secure temporary housing and start rebuilding. Some insurers drag their feet, asking for excessive documentation, sending multiple adjusters, or constantly re-evaluating your claim to wear you down. 

3. Claiming Pre-Existing Damage

An adjuster might argue that some of the fire damage isn’t covered because it existed before the wildfire. This is a common excuse used to reduce the payout—even when you have proof that your home was well-maintained before the fire.

4. Disputing the Cause of the Fire

In some cases, insurance companies try to shift blame, arguing that the fire wasn’t covered under your policy due to certain exclusions. For example, they might claim that the fire was caused by negligence or a non-covered event.

5. Pressuring You to Accept Less

Insurers know that many homeowners are desperate for funds. They might offer a quick but inadequate settlement, hoping you’ll take the money rather than fight for what you truly deserve.

Your Rights as a Policyholder

Insurance companies are legally required to treat policyholders fairly, but that doesn’t always happen. If your insurer is delaying, underpaying, or denying your wildfire claim without a valid reason, you have rights under California law. 

First, your claim must be investigated thoroughly and honestly—insurers can’t ignore evidence or stall without cause. They’re also required to respond within 15 days and approve or deny your claim within 40 days after receiving proof of loss. 

If your policy covers wildfire damage, they must pay what they owe, not cut corners or unfairly exclude costs. If you’re offered less than you deserve, you have the right to dispute it, request a review, or even take legal action. 

Remember—insurance companies have teams of lawyers protecting their bottom line, but you don’t have to fight them alone. A California fire insurance attorney can help you stand up for your rights and secure the full payout you’re entitled to.

Is it Bad Faith? How to Spot Red Flags

Not all insurance adjusters act in bad faith, but if you’re noticing stalling tactics, lowball estimates, or vague explanations, it’s time to be on high alert.

• Unnecessary Delays: One of the biggest red flags is unnecessary delays. If your adjuster is slow to respond, repeatedly asks for the same documents, or claims they need further review without giving a clear timeline, they may be trying to wear you down. Time is critical after a wildfire, and unnecessary delays can make it harder to rebuild.
• Lowballing the Claim: If the adjuster’s estimate is far below what contractors are quoting, or they fail to account for hidden damage like smoke contamination or structural weakening, they may be undervaluing your loss to save the insurance company money. Always get an independent estimate to compare.
• Denying Valid Claims: They might argue that certain damage was pre-existing or claim your policy doesn’t cover specific losses—when it actually does. If they refuse to provide a written explanation for their decision, that’s a major red flag.
• Misrepresenting Your Policy: Some adjusters cherry-pick clauses to justify denying or reducing your claim, insist that your coverage isn’t enough—even when your policy states otherwise—or use confusing language to discourage you from challenging their decision.
• Pressuring You: If your adjuster pressures you to accept a low settlement, be cautious. They may tell you it’s the best offer you’ll get or suggest that fighting back will take too long and cost too much. This is a common tactic to get homeowners to settle for less than they deserve.
• Ignoring Evidence: If your adjuster doesn’t conduct a proper inspection, disregards photos, contractor reports, or independent assessments, or refuses to acknowledge professional opinions that contradict their low estimate, they may be acting in bad faith.

If you notice these warning signs, document everything—emails, phone calls, and damage reports. Get a second opinion from a public adjuster or contractor. Most importantly, don’t accept an unfair offer without speaking to a lawyer. A fire insurance attorney can help you fight back and get the full payout you deserve.

Call a Bad Faith Insurance Lawyer

If you’ve lost your home or suffered damage in a California fire and your insurance company is delaying, underpaying, or denying your claim, don’t wait. The longer you delay, the harder it can be to recover what you’re owed.

Rebuilding after a wildfire is already overwhelming. Fighting with your insurance company shouldn’t be another burden. If you’re struggling with a denied or underpaid claim, remember: You have rights, and you don’t have to take their word for it.

A fire insurance lawyer in San Bernardino at William D. Shapiro Law, Inc., can level the playing field and help you fight for the full compensation you’re entitled to. 

Need Help? Let’s Talk.

If your insurance adjuster isn’t playing fair, we’re here to help. Schedule a free consultation to discuss your case and take the first step toward getting the settlement you deserve. Call us at (909) 890-1000 or fill out our confidential contact form today, and we’ll call you back.