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Wildfires

Most wildfires are treated as acts of nature, but many are started by people or equipment: a utility's power lines, a railroad, a contractor's machinery, or someone burning debris. When a wildfire has a human cause, one event can destroy hundreds or thousands of homes, so these files usually become group claims, often handled alongside other carriers through law firms that specialize in wildfire subrogation. The rules vary a lot by state and are changing, so check current law early.

What it coversUtility power lines, railroads, government claim deadlines, group claims

Step-by-step checklist

Identify

Contact the claim adjuster right away. Ask them to hold the scene and for permission to retain an expert at the client's expense. Note the call in the file.
On every claim, ask the client whether they want an origin and cause investigator to review the scene, or confirm one is already assigned. Note their answer in the file so the decision is on record.
Make sure no evidence is touched or moved until the expert has secured the scene
Get the client's approval for the scene exam cost. Most run at least $1,600 with travel, the day rate, and expenses.
Find out whether investigators have named a cause or a suspected cause
Confirm your insured's property was inside the fire's path, and the date it burned
Identify any utility, railroad, government agency, or contractor involved

Hands off until the expert arrives. Nothing at the scene gets touched, moved, repaired, or thrown out until the origin and cause investigator has secured it. Evidence that's moved early can sink the whole recovery.

Notify

Check for government claim deadlines if a public utility or agency may be involved
Put the utility or other responsible party and its carrier on notice
Decide whether to join a group of carriers pursuing the same fire

Investigate

Follow the official investigations, like CAL FIRE, the U.S. Forest Service, or state fire marshals
Track utility incident reports filed with state regulators
Keep an eye on lawsuits and settlement programs for the same fire
Save your insured's photos, video, and timeline

Demand

Review payments and out-of-pocket costs, including living expenses
Sort the supports into photos, estimates, invoices, and reports
File the claim through the lawsuit, settlement program, or direct demand

Negotiate

Follow the group's timeline, and watch for settlement program deadlines
Check for state laws that limit or change recovery against utilities
Negotiate or join the group settlement

Settle

Review the release
Receive payment, issue the deductible and client payments
Final file review, then close

1. Identify

Common human causes of wildfires

Utility power lines: lines that fall or slap together in wind, equipment that fails, or trees growing into lines the utility was supposed to trim
Railroads: sparks from brakes or wheels, and track work
Contractors and equipment: mowers, grinders, welding, and other work that throws sparks in dry grass
Debris burning or campfires that get away
Vehicles: a dragging trailer chain or a hot exhaust parked in dry grass
Fireworks
Arson, which usually leaves no one to recover from

Who may be responsible

What you find	Likely cause	Who may be responsible
Fire started near power lines during high wind	Utility equipment or lines	The electric utility
Trees or branches contacted lines	Poor vegetation management	The utility, and its tree-trimming contractor
Fire started along railroad tracks	Sparks from trains or track work	The railroad
Fire started where crews were working	Sparks from equipment	The contractor, and whoever hired them
Fire started from a burn pile or campfire	Escaped fire	The person who set it, and their homeowners or liability carrier
Fire started on public land from a controlled burn	Escaped prescribed burn	The government agency that ran it

Responsible parties to consider

The electric utility, and its tree-trimming and maintenance contractors
A railroad
Contractors, and the property owners who hired them
Neighbors or landowners who burned debris
Government agencies, for escaped controlled burns or their own equipment
Equipment manufacturers, if a product failed

Government deadlines can be very short. When the responsible party is a government agency or a publicly owned utility, most states require a written claim first, often within months of the fire, before you can sue. Federal agencies have their own claim process under the Federal Tort Claims Act. Missing that deadline can end the claim, so check it on day one.

Utility liability rules differ by state. Some states, like California, have made utilities responsible for fires their equipment causes even without proving negligence, under a rule called inverse condemnation. Other states require proof of negligence, and some have passed laws that limit what utilities pay. In 2026, California began debating limits on insurers' recovery from utilities, so confirm the current rules before relying on them.

2. Notify and investigate

You usually won't run your own scene exam. Wildfire scenes are huge and controlled by fire agencies. The official investigation, the utility's own reports to regulators, and the lawsuits that follow are where the cause gets proven. Your job is to document your insured's loss well and make sure your claim is filed on time.

Consider joining a group. When one fire causes many losses, carriers often pursue the claim together through a law firm that specializes in wildfire subrogation. This splits expert and legal costs across many carriers. Ask your client how it handles these.

Finding the utility's claims contact. Look the power company up in the Subrobuddy Utility Directory and add it to your letter with the Party Finder. Most large utilities take claims through an online form or phone line, so file there first and reference the claim number in your notice.

Who to put on notice

The utility, railroad, contractor, agency, or person believed to be responsible
Their carriers, once known
The government agency, through its formal claim process, if one is involved

Evidence checklist

Your insured's photos, video, and timeline of the fire reaching the property
Before-and-after photos of the property and its contents
The official fire investigation report, when released
Utility incident reports filed with state regulators
Any evacuation orders and the date and time the property burned
Estimates, contents lists, and living expense records
Records of any water or smoke damage in homes that didn't burn

3. Demand, negotiate, and settle

Liability theories

Against a utility: negligence, and in some states, inverse condemnation, which doesn't require proving negligence
Against a railroad or contractor: negligence, and in some states, fire-specific laws that make whoever starts a fire responsible for the damage
Against a person who burned debris: negligence, and violation of burn bans or permits
Against a government agency: negligence, through the state's claims process or the Federal Tort Claims Act

Defenses to expect

Defense	How to answer it
It was an act of nature	The official cause report, and evidence tying the start to equipment or people
Your claim is late	Proof you filed on time. This is why the government deadline check comes first.
State law limits what we pay	Check the current law for that state and that fire date. Rules have changed recently.
The fire had several starts, and ours didn't reach your insured	Fire spread maps and timing, usually from the group's experts
Your insured's damage came from smoke, not fire	Smoke and ash damage is still damage caused by the fire. Document it the same way.

Negotiating and settling

Many utility wildfire cases end in large group settlements or settlement funds, often after years. Keep the file organized so you can file quickly when a program opens.
Settlement programs may pay carriers a percentage of what they paid, rather than the full amount. Know your client's approval rules before agreeing.
Review the release with the release checklist, then close with the standard closing letter and the deductible reimbursement letter.

4. Letters for this loss

Step	Letter	Sent to
Identify	Subrogation Opening Letter to Insured	Insured: photos, timeline, contents list
Notify	Notice of Subrogation Interest and Insurance Request	Utility, railroad, contractor, or person responsible
Notify	Notice of Subrogation Interest to Adverse Carrier	Each party's carrier
Demand	Subrogation Demand to Adverse Carrier	Carrier(s), when not part of a group case
Negotiate	Second Demand with Escalation Notice, Tolling Agreement Request	Carrier(s)
Settle	Release Review Checklist, Closing (Made Whole) or Pro Rata, Deductible Reimbursement	Client and insured

Sources