Nevada Wildfire Insurance Laws
As a concept, insurance is easy to understand. It is designed to provide financial protection against losses covered under a policy. That holds true for your car, boat, house, or anything else you take out a policy on.
The hope is that you’re never in a situation where you have to make a claim, but it brings peace of mind knowing that you’re covered.
There are two issues that every policyholder should be concerned with. Those are whether you’re covered for your specific issues and whether the insurance company will honor the policy. A recent change in Nevada insurance laws allows for insurance companies to drop wildfire coverage as part of a standard homeowner’s policy.
It is very likely that if you once had wildfire coverage as part of your policy, it is no longer applicable, and you would need to secure a separate policy.
The following post will help bring the Nevada wildfire insurance laws into sharper focus.
Overview of Nevada Wildfire Insurance Regulations
Every mortgage lender requires homeowners to carry homeowners’ insurance.
At a minimum, that policy needs to provide for the replacement cost of rebuilding the home if it is destroyed in a fire. A comprehensive policy will also provide coverage for personal property losses.
Each homeowner’s insurance policy will list certain perils. These are the specific causes of damage to a home or property. Standard perils include the following:
- Lightning
- Windstorm and hail
- Theft and vandalism
- Explosions
- Vehicles or aircraft that might strike the home
- Water damage
- Weight of ice, snow, or sleet
- Fire and smoke
It is important to note that, for Nevada homeowners, there is a distinction between a fire caused by an internal source, such as a kitchen grease fire, and one caused by an external source, such as a wildfire.
Under Nevada’s new law, A.B. 376, insurance carriers can now exclude wildfires as a peril.
That means that a homeowner will need to add a separate policy. The same mortgage lenders that require general homeowners’ insurance might also require additional protection. That mandate might depend on the property’s location.
Common Reasons for Wildfire Insurance Claim Denials
In the aftermath of a wildfire disaster, there will be a rush to file insurance claims. It is understandable that each policyholder would want their claim to be processed immediately. Unfortunately, there are many common reasons for claim denials, including the following:
Lack of Documentation
All wildfire losses must be properly documented with photos and videos. Documentation can also include contractor estimates and receipts for loss or damaged property.
Late Filing
Your wildfire policy might have notification deadlines. This is the requirement to report the damage, but it’s not an official claim. That might take several days to pull together, but the insurance company requires policyholders to notify them of the impending claim. If you miss that notification filing deadline, it could impact your ability to receive a settlement.
Misrepresentation
There might be unintentional misrepresentations on your insurance claim that can trigger a denial. For example, if your original insurance application listed the square footage of your home but your wildfire claim has a different number, the insurance company could accuse you of fraud.
Failure to Maintain the Property
An insurer might argue that you didn’t maintain your property by not trimming trees and other growth.
Exclusions
The “fine print” of an insurance policy can include many exclusions that would limit your ability to be compensated. For instance, there might be an exclusion to other structures, such as a detached garage or outdoor kitchen.
Policy Lapses
If there were gaps in your coverage due to failure to pay premiums, it could result in a cancellation, and that would prevent you from filing a claim.
Understanding Insurance Bad Faith in Nevada
You expect your insurance carrier to be standing by to help process your claim in the aftermath of a wildfire. After all, this is what insurance is all about, right? Sadly, there are many instances where an insurance company acts in bad faith. What does that look like?
Consider these bad faith tactics:
- Unreasonable delays with the process or payment
- Unwarranted denials
- Inadequate investigations
- Misrepresentation
- Lowball offers
The lowball offer is probably the most common bad-faith insurance tactic.
When that occurs, it is time to bring in an experienced Reno wildfire insurance lawyer who understands what a fair offer should look like.
Recoverable Damages Under Nevada Insurance Law
Nevada insurance law applies a modified comparative negligence rule. That means even if you are found to be partially responsible for an accident, you can still seek compensation.
The recoverable damages allowed under Nevada insurance law fall into three basic categories:
- Economic
- Noneconomic
- Punitive
The economic damages are all the quantifiable losses. This would be anything that can be backed up by a receipt. Non-economic damages are subjective losses, such as physical pain and suffering or emotional distress. Punitive damages are awarded when the at-fault party engaged in egregious misconduct.
Wildfire insurance claims would focus primarily on economic damages.
However, you could receive compensation for pain and suffering outside of your homeowner’s policy. That would involve filing a claim against a negligent party, such as a utility company, that might have accidentally started the wildfire.
How an Insurance Bad Faith Attorney Can Help
If you suspect that your insurance company is acting in bad faith, it is important that you seek out qualified legal counsel. When an insurance company is engaged in unfair practices, it takes a strong advocate to call them out and demand a course correction. The Law Office of Matthew L. Sharp can be that advocate.
If we are again to represent you, we will conduct a thorough investigation into the insurance company’s practices. It’s a safe bet that if they are acting in bad faith with you, they’ve done it before with other policyholders. We’ll step in, call out the bad faith, and demand fair compliance.
We understand how important it is to resolve your insurance claim matters after a wildfire.
You can’t move on if you’re stuck waiting for your entitled benefits.
If you’re encountering roadblocks with your insurance company, we want to hear from you. Call our office to schedule a free case review today.
You shouldn’t have to wait for compensation you’re entitled to.
