FIRE DAMAGE INSURANCE CLAIMS

Fire damage to a business can be particularly devastating. Even if the fire doesn’t cause the structure to burn to the ground, it can leave behind long-lasting damage from smoke and soot. Not only that, but commercial property owners may also have to grapple with a loss of inventory or have to consider relocating permanently. Needless to say, dealing with residential or commercial fire damage insurance claims can be a difficult and time-consuming process.

Fire Damage Insurance Claim Attorneys in Texas

Fires are one of the most common causes of damage to commercial property. In fact, almost a quarter of all homeowner’s insurance claims each year are the result of fire or smoke damage. According to the National Fire Protection Association (NFPA), in 2021 alone fire departments across the nation responded to an estimated 1.3 million fires that caused a total of $15.9 billion in property damage. In 2020, the Texas Department of Insurance estimated that fires caused more than $636 million worth of property damage claims. The agency noted that nearly 8,000 fires occurred that year. 

Although a fire can start just about anywhere, there are a few types of fires that home and business owners suffer most often:

  • Kitchen Fires: The most common type of fire in Texas, usually caused by unattended pots and pans, excessive grease or oil that boils over, or malfunctioning culinary equipment are the main culprits

  • Electrical Fires: These fires can be caused by faulty wiring, malfunctioning electrical devices, or overloaded circuits

  • Heating Equipment Fires: Fires caused by a defective space heater, furnace, or other heating equipment are most common in wintertime

  • Wildfires: Perhaps the most frightening type of fire in Texas is wildfires. Texas is prone to wildfires, even in the densely populated metro areas. Drought conditions, lighting strikes, or human carelessness can cause wildfires.

To give you an idea of how devastating wildfires in Texas can be, consider these facts:

A fire’s flames, smoke and heat can all greatly damage buildings and their contents. Not only that, but firefighting materials like water, foams, and powders can also cause further destruction to property. Recovering from such damage can be a challenge, as it is often costly and time-consuming to deal with. In certain situations, businesses can be left on the hook financially for damages to customer or client property, all while the business is left completely inoperable. A business with no insurance coverage for such damage will have to cover the cost of repairs and fire department service fees out of pocket. If the business lacks the financial resources to pay these costs, it may be forced to cease operations.

Having to battle an insurer that will not properly pay a claim following a fire only exacerbates the frustrations a policyholder may experience. Lundquist Law Firm has handled hundreds of such claims across the country and knows how to protect your rights and ensure you are fully compensated following a fire and/or smoke damage loss. We are expert in California wildfire insurance claims, give us a call at (346) 704-5295 or contact us today to schedule a free case evaluation .

Risks Covered Under a Typical Fire Insurance Policy

Most property insurance policies cover fire and lightning damage. Specific dangers clauses in commercial property insurance may address the activities that will take place in the facility, such as office usage, retail use, industrial use, and warehousing, each having its own risk issues. When a fire damages or destroys a building, smoke damage can occur throughout the structure, including precious personal goods. As a result, smoke damage from a fire must be factored into the overall amount of damage needed to restore the house or commercial property.

Every insurance policy has unique features that are tailored by the coverage offered and chosen for purchase by a property owner, taking into account the different types of storms and structural damage that occur in that region of Texas. As a result, a policyholder lawyer should analyze specific policy terms, particularly if a fire is a higher-risk concern due to the use or location of a building structure. Some plans, for example, will solely cover fire-related damage, whilst others may also cover smoke and water damage.

When a fire completely or partially destroys an insured's property, policyholders must file a claim for damages to fund reconstruction and replacement, as well as expert cleaning of permanently damaged items. Unless a special paragraph states and excludes this type of damage, flames, soot, and ashes cause damage and leave harmful byproducts in a building structure and should be covered. Water damage is another factor to consider, which raises the possibility of mold-related health problems. Loss of use is typically covered in most insurance plans as well, which pays for living expenses if you have to move while your home is being repaired. Living expenses that may be covered include hotel bills, rent, food and other costs you would not have incurred if you were living in your home. For commercial insureds, business interruption can prove critical but is also usually the most contentious area during the claims process.

In sum, no matter the fire’s cause, the effects are the same. Your home or business may suffer one or more of the following types of fire damage:

Property Damage

The structure of your home or business and its contents, fixtures, and furnishings may be damaged.

Interruption of Your Business

If your business closes, either temporarily or permanently, you may receive compensation for the loss in profits while you rebuild.

Soot and Smoke Damage

Even if the flames don’t cause serious structural damage, the interior of your house or office may still suffer toxic, foul-smelling smoke damage. Smoke and soot damage can be quite costly to clean up. There are several types of smoke, each causing specific types of damage, including:

  • Wet Smoke: A consequence of a slow-burning, smoldering kind of fire, wet smoke usually produces thick, oily smoke that leaves behind a hard-to-clean sticky residue

  • Dry Smoke: Usually the result of a fast-burning fire, dry, powdery smoke can be difficult to remove from some materials but is generally easier to clean than wet smoke

  • Protein Smoke: Occurring with a food-cooking fire (or a fire burning other organic material), this smoke damage is difficult to remove and leaves behind a very strong, distinctive odor

  • Chemical Smoke: Results from fires involving synthetic materials, plastics, and other types of chemicals, and cleaning the smoke damage left behind from these fires requires special cleaning equipment and techniques

Many buildings may have smoke residue, which may be noticeable discoloration or a visible residue. Smoke residue includes ash, soot, or other smoke-related debris.

Water Damage

Damage from water may not be the first thing people think of when they think of fire damage, but in many cases, the water your fire department uses to put out the fire can cause more damage than the fire and smoke — especially if it’s not cleaned up immediately, and mold or mildew start growing.

Each property requires different approaches to cleaning and restoring it, from odor removal to mold remediation. You should be compensated for all the necessary cleaning.

Fire Damage Insurance Claim Denials and Underpayment

Fire or smoke claims may be denied for a variety of reasons, including unethical behavior and carrier methods such as:

  • Accusing a policyholder of arson

  • Failure to take preventative measures to limit loss or damage to the business

  • Delaying scene investigation, leaving room for errors in damage valuation, or increasing damage from exposure to the elements and lingering toxins

  • Threats of prosecution of a policyholder for the supposed fraudulent claim

  • Undervaluing property and contents

  • Violations of insurance policy terms and coverages

The insurance company carries the burden of proving arson allegations. Nonetheless, a fire insurance claim attorney will develop a case to support the payment benefits that a policyholder is entitled to. A fire damage insurance claim is typically paid within 3-4 months, however minor filing errors and other flaws in claim documentation can cause that timeline to be extended. Lundquist Law Firm's experienced fire damage insurance claim attorneys help to streamline this process.

What To Do After a Fire

Policyholders should prioritize completing an informative document regarding a fire-damaged property that includes:

  • The date and type of loss

  • The location and any injuries sustained

  • Other people besides the policyholder and residents involved

  • Condition of the home or commercial building

  • Detailed description of damaged contents

  • Construction quotes for temporary repairs or complete replacement costs

  • Police and fire department reports

  • Insurance company filing deadlines

  • Relevant documents, records, pictures of items, videos, and receipts for costs of items. Email transmissions of communication with the insurance company, as well as notations on phone calls or any other interaction having to do with the loss from fire and smoke damage

Any things that have even minor smoke, soot, or ash damage must be replaced to prevent residents or building occupants from suffering long-term health consequences. Professional cleaners and remediation teams can provide an exact price for the essential services that should be added to damage claims to the insurance company. Interior structural walls and ceilings, for example, may require replacement, as well as non-fixture objects like as draperies, clothing, heirlooms, and carpeting.

Because Texas insurance companies may attempt to deny a smoke damage claim, it is in the policyholder's best interest to employ an independent loss adjuster to verify property damages, including smoke-damaged objects. A fire insurance claim lawyer can help you navigate this procedure by assembling a team of insurance claim loss adjustment professionals. Experienced insurance attorneys work with adjusters to formally assess fire damage and prepare valuations for payments due under perils covered by a standard insured's policy, as well as help gather evidence to support the validity of claims that have been submitted on behalf of policyholders.

Why Choose Lundquist Law Firm?

All of our attorneys previously defended carriers in these exact types of disputes. Unlike most firms, this is all we do—our entire practice is dedicated to helping policyholders get the just compensation they deserve for their properties following casualty events. Indeed, for over 20 years, we have helped policyholders with their fire damage insurance claims, collecting almost $100 million in confidential settlements from carriers for our clients. Additionally, as a smaller firm, we offer greater attention to detail and a hands-on approach. No matter how solid your claim, insurance companies will always look to protect themselves and try to avoid paying you what you are owed. We are a nationally recognized bad faith insurance litigation law firm that is familiar with the tactics insurance companies often use to deny claims. Our attorneys counter with successful strategies, including hiring professional inspectors and engineers to find clear, physical evidence of property damage covered under the specific terms of your policy. This allows us to have a detailed, comprehensive estimate of the real damage to your property and how much we should seek in claim compensation on your behalf. Our attention to detail and use of professional experts, contractors, and engineers sets us apart from other insurance litigation firms. We approach each case as though it is going to trial, not just settlement, appraisal or mediation.

Want your lawyers to have a proven track record? Since 2017, in addition to our co-counsel, we are the only law firm who successfully went to trial on a commercial property insurance claim against any insurance company stemming from a denied Hurricane Harvey claim—obtaining a record-setting verdict in the process. The final judgment was entered by the judge for over $4.200,000, which TopVerdict determined to be the #1 Texas verdict against any insurance company in 2020. 

How Our Firm Can Help

At Lundquist Law Firm, we are experienced in dealing with insurance company defense tactics and know how to fight back on behalf of policyholders. If you decide to contest your insurance company’s coverage decision, they will spend whatever it takes to hire their own attorneys and experts to defeat your claim. If the insurer’s conduct has been particularly inappropriate, you may have a bad faith action against the insurer depending on the state. For recovery under your policy, and for bad faith litigation, it is important that you have experienced fire damage insurance claim attorneys on your side. Lundquist Law Firm will fight the insurance companies on your behalf and ensure that your insurance claims are honored.

We work on a contingency-fee basis, which means you owe us nothing if we are unsuccessful. And we handle fire insurance claims prior to litigation at a significantly reduced contingency fee. We also front the case expenses necessary to combat the insurance company in litigation. We promise to aggressively pursue your rights under the policy if your fire insurance claim was delayed, underpaid, or denied. Of note, the Texas Department of Insurance has found that engaging the services of an advocate increases an insured’s payment on a fire damage insurance claim by an average of 308%.*

Contact Lundquist Law Firm’s Award-Winning Fire Damage Insurance Claims Attorneys

The award-winning, undefeated insurance lawyers at Lundquist Law Firm can communicate with insurance companies, gather formal reports from arson investigators, and collect repair or replacement estimates for a fire-damaged property. When insurance claims are denied, or a carrier is undervaluing damage, a fire damage insurance claim lawyer can initiate formal litigation and report the insurance company to the Texas Department of Insurance.

To learn more about the legal assistance we can provide on your fire insurance claim, give us a call at (346) 704-5295 or contact us today to schedule a free case evaluation.