Homes destroyed. Families displaced. But for many Long Island wildfire victims, the worst is just beginning.
As survivors attempt to rebuild, they’re encountering roadblocks from the very insurance companies they’ve relied upon. Delayed claims, denied coverage, and lowball settlements are leaving families in financial turmoil—a scenario all too familiar in wildfire-prone regions.
The Insurance Industry’s Playbook: How Companies Dodge Payouts
Insurance companies have a history of employing bad-faith tactics to minimize wildfire payouts. According to the National Association of Insurance Commissioners (NAIC), some of the most common issues include:
- Denial of Coverage: Claiming wildfire damage isn’t included or that homeowners failed to meet policy conditions.
- Blaming Homeowners: Arguing that property owners neglected necessary fire precautions.
- Prolonging the Process: Requiring excessive paperwork, repeated inspections, and extended investigations to delay payments.
- Lowball Settlements: Offering significantly less than what’s needed to rebuild.
How Often Does This Happen?
Wildfire victims frequently report these challenges. The Insurance Information Institute (III) warns that homeowners must be proactive in ensuring they receive a fair settlement. Insurance companies often depreciate home values unfairly or use vague policy exclusions to deny valid claims.
Real Fire Victims Speak Out: Delays, Denials & Devastation
Long Island homeowners are already reporting major challenges in getting their wildfire claims processed.
- A homeowner in Westhampton Beach was informed that her insurance company is conducting a “routine investigation” before issuing a payout—a delay tactic that could last months.
- A family in Riverhead received a settlement offer thousands below their rebuilding costs, with the insurer citing “depreciation” on their home.
- A business owner in East Moriches was denied coverage entirely after the company claimed the fire damage was “not directly caused by flames” but rather from “smoke and heat.”
This is not an accident—it’s part of an industry-wide strategy to pay less and protect profits.
Why Insurance Companies Get Away With It (And How You Can Fight Back)
The insurance industry relies on policyholders giving up. They know most people:
✅ Lack the time or resources to contest unfair decisions.
✅ Are too overwhelmed dealing with wildfire recovery to challenge unjust claims.
✅ Trust the insurance process—unaware they’re being misled.
But fire victims have legal options.
If an insurer is delaying, denying, or underpaying your claim, you may be able to force them to honor their policy through legal action.
💡 FEMA’s Guide on Insurance and Disaster Claims explains how homeowners can challenge wrongful denials and seek additional relief if insurers refuse to pay fairly.
What You Can Do If Your Claim is Denied or Delayed
📌 Demand a written explanation for any denial or delay.
📌 Document everything—retain emails, letters, and damage reports.
📌 Don’t accept the first offer—it’s often a lowball.
📌 Consult a wildfire insurance lawyer to challenge unfair claim decisions.
🚨 Warning: The American Property Casualty Insurance Association has warned that insurers often use complex legal loopholes to reduce payouts, making legal assistance critical.
Is Your Insurance Company Acting in Bad Faith? Know the Warning Signs
If you’re experiencing any of the following, your insurer may be acting in bad faith:
🔴 Ignoring your communications—delays, no responses, or excessive requests for unnecessary documentation.
🔴 Dragging out investigations without clear reasons.
🔴 Claiming you were underinsured or using policy loopholes to reduce your payout.
🔴 Offering settlements far below your policy coverage.
💡 Want to know more? Read FEMA’s official guidance on disaster insurance claims.
What’s Next for Long Island’s Fire Victims?
The Long Island wildfire insurance crisis is just beginning—and it’s likely that thousands of homeowners will soon face these same delays, denials, and underpayments.
🔥 The good news? You don’t have to accept it.
Fire victims who challenge their insurers with legal action often recover significantly more compensation than those who try to negotiate alone.
💡 If your insurance company is stalling, denying, or underpaying, get legal help now.
Know Your Rights – Free Insurance Claim Review
📞 Call Now: (212) 603-9100
🖥️ Visit Us Online: MersonLaw.com
⏳ Insurance companies have teams of lawyers working against you—don’t fight alone.
