After experiencing the Eaton Fire, I’m grateful I renewed my renters insurance policy.
I had been considering whether to renew my policy, but after the fire in Altadena, California, I’m certainly glad I did. During the evacuation, I took the time to document my belongings, which proved invaluable when filing a claim. My insurance company currently has a moratorium on new policies in my area, but I’m considering adding a rider for food spoilage in the future.
Following the 2020 Bobcat Fire, which happened in the San Gabriel Mountains near my home, securing renters insurance was challenging. No insurance provider wanted to cover my small cabin because it was considered a high risk.
Fast forward to last year. After reinstating my AAA renters insurance, I was debating its necessity. Fortunately, I decided to renew my policy. When the Eaton Fire ignited in Altadena in January, destroying thousands of homes and forcing thousands of families to evacuate, I had to leave my home.
I’m thankful I had renters insurance because it helped cover some of my living expenses during the evacuation. The coverage also paid for cleaning my place of the ash and debris from the fire.
Reviewing My Policy
Once a mandatory evacuation order was issued for my zone, I checked the details of my renters insurance policy. Since renter’s insurance primarily covers the contents of a property, not the structure itself, my policy included repair, restoration, and replacement of my belongings. My policy covers up to $33,000 per occurrence for unscheduled personal property.
Loss of use was also included. This means that if my home became uninhabitable for any reason, including evacuations and displacement, certain expenses would be covered. I have up to $6,600 in coverage for loss of use per occurrence.
This includes meals, food expenses exceeding my regular spending, accommodations like Airbnb or hotel stays, and other living costs that I incurred because I couldn’t live at home.
Filing a Claim
I filed a claim using a short series of questions on the AAA app. Within days, I received a claim number, an insurance adjuster, and their contact information. I contacted them directly.
Following this, they arranged for a home visit from a vendor specializing in restoration. They provided an estimate for cleaning my textiles (clothing and couch cushions, among other things) and cleaning my home of all the ash and soot.
Documenting Everything
The night of the evacuation, strong winds up to 90 miles per hour swept through the canyon area where I live. When I first heard about the fire in Altadena, I hoped to return the next day but quickly realized that wasn’t going to be the case. The fire spread rapidly toward the mountains above me.
As a precaution, I photographed and recorded videos of my belongings, including furniture, artwork, clothing, kitchenware, and my sticker collection. Screenshots of the city’s evacuation order, and the subsequent lifting of the order, were also saved.
I also kept receipts and screenshots of receipts for potentially covered expenses, including food and supplies for my cat, grocery bills, restaurant invoices, and other living expenses.
Claim Payout and Future Considerations
I received a partial payout for remediation and cleanup coverage, which falls under the unscheduled personal property portion of my claim, while I was still submitting loss of use expenses.
AAA sent an email requesting my direct deposit information, which was then deposited into my linked bank account on the same day. My $250 deductible was taken from that amount.
I’ve been considering whether to increase my policy limits. While it would likely be more expensive, I’m assessing whether it’s worth it to add a rider to cover food spoilage. I contacted AAA and spoke to an insurance representative. As expected, there was an insurance moratorium for my ZIP code, which meant the insurance company had paused issuing new policies or expanding coverage on existing ones.
Realizing how expensive it would be to replace everything and how I likely underestimated the amount of insurance needed, I’m seeing how important it is to ensure I have the right coverage. Last year, I paid $253 for my premium, or $22 a month (plus a $250 deductible). Considering potential natural disasters this year, I want to make sure I have sufficient coverage.
Jackie Lam is a personal finance writer and accredited AFC® financial counselor based in Los Angeles. With a focus on helping artists, freelancers, and gig economy workers, Jackie’s expertise spans budgeting, investing, and money management. She is the 2022 recipient of the Financial Literacy and Education in Communities (FLEC) Award and the 2022 Plutus Awards for Best Freelancer in Personal Finance Media.
