Ch 5 · Common Loss Types
Module 5.3
Fire Loss Playbook
Smoke and soot. ALE. The contents claim is half the recovery.
12 min read
What you'll learn
The 3-component fire claim. Smoke + soot reality. ALE for 12-24 months. Why contents often equals structural.
5.3.1 Fire claims have 3 components
| Component | Typical % of total |
|---|---|
| Fire damage (direct burn) | 30-40% |
| Smoke + soot damage | 30-40% |
| Water damage (firefighting) | 20-30% |
Plus:
- Contents (often equals structural)
- ALE (12-24 months for major fires)
- Mitigation (board-up, tarping, demolition)
A "fire claim" is really 3 claims rolled together. Don't undersell any component.
5.3.2 The fire claim workflow
Day 1-3: Safety + mitigation
- Fire department clearance — do not enter unsafe structure
- Board-up service (boards, plywood, fence)
- Tarp roof
- Secure utilities (gas, electric)
- Document everything before any cleanup
Day 1-7: Documentation
- Notice carrier in writing
- Comprehensive photo / video documentation
- Police + fire reports
- Cause-and-origin determination
- Fire marshal report
- ALE arranged immediately
Day 7-30: Initial inspection
- Carrier sends adjuster + cause-and-origin expert
- Your contractor + IICRC inspector + cause-and-origin expert present
- Independent estimate prepared
- Contents inventory begun
Day 30-90: Negotiation
- Carrier issues estimate
- Your independent estimate ready
- Mitigation reimbursement demanded
- Contents inventory finalized
- ALE ongoing
- Specific rebuttal
Day 90-365: Reconstruction
- Demo phase
- Reconstruction estimates
- Multiple progress payments
- Recoverable depreciation tracking
- Final closeout
5.3.3 Smoke + soot — the hidden multiplier
The problem
Smoke + soot:
- Penetrates everything (walls, ceilings, contents, HVAC)
- Persistent odor
- Health hazard (especially synthetic burns)
- Requires specialized cleaning
Required scope
| Item | Treatment |
|---|---|
| HVAC system | Full duct cleaning + filter replacement |
| Walls + ceilings | Wash + odor seal + repaint |
| Carpets | Replace (cannot be cleaned) |
| Hardwood | Sand + refinish OR replace |
| Cabinets | Wash + treat or replace |
| Soft contents (clothing, fabrics) | Specialty cleaning OR replace |
| Hard contents | Wash, treat, ozone |
| Insulation | Replace |
| Whole-house ozone treatment | Often required |
Common gaps
- HVAC undertreated
- Insulation not replaced
- Wall washing done, sealing not (odor returns)
- Contents cleaning insufficient
5.3.4 Water damage from firefighting
Firefighters use thousands of gallons. Water damage component often equals fire damage in cost.
Treatment
- Standard water mitigation (extraction, drying, dehumidification)
- IICRC S500 protocol
- Mold prevention
- Subfloor + insulation removal
- Contents drying / replacement
Strategy
Bill water damage component separately from fire. Don't let carrier roll into single low number. 3 distinct mitigation invoices = 3 distinct reimbursements.
5.3.5 Cause-and-origin disputes
What happens
Carrier sends investigator (often O'Connor, JS Held, or similar). Looks for:
- Arson (intentional)
- Owner negligence (smoking in bed)
- Pre-existing condition
- Excluded cause (e.g., war, nuclear)
If they suspect arson
- Carrier issues Reservation of Rights
- Demands EUO
- Investigates owner finances, history
- Hires forensic experts
Counter
Hire your own cause-and-origin expert immediately. Public investigator (often retired fire marshal) writes independent report.
Document
- Time stamps of fire
- Witness statements
- 911 calls
- Police + fire reports
- Owner whereabouts at time of fire
- Smoke detector / alarm logs
Never let a fire claim ride without your own expert. Carrier's narrative becomes the case unless you counter.
5.3.6 Contents — the parallel claim
Fire contents claims often equal or exceed structural claims.
Categories
| Type | Typical $ | Considerations |
|---|---|---|
| Soft contents (clothing, bedding, towels) | $5K-$50K | Replace, not clean for major smoke |
| Furniture | $20K-$200K | Item-by-item value |
| Electronics | $5K-$100K | Computers, TVs, appliances |
| Kitchenware + glass | $5K-$30K | Often heat damage |
| Books, photos, mementos | Variable | Some irreplaceable |
| Jewelry / valuables | Sub-limit traps | Schedule separately |
| Outdoor / pool / garage | $5K-$50K | Often missed |
Process
- Pre-loss baseline — credit card history, photos, lifestyle inferences
- Item-by-item inventory — every category
- Pricing source — current retail, scheduled property, receipts
- Sub-limit verification — jewelry, art, electronics may have caps
- Documentation — photos before disposal, receipts after replacement
5.3.7 ALE — Additional Living Expenses
Major fire = 12-24 months out of home.
Coverage
- Hotel / rental during reconstruction
- Furniture rental
- Increased food costs
- Pet boarding
- Storage units
- Mileage to home for cleanup
Strategy
- Begin ALE Day 1 — do not wait
- Document expenses — receipts, mileage logs
- Bill monthly — don't wait until end
- Sub-limit awareness — typically 24 months OR 20% of dwelling
- Extend if needed — most policies allow extension if delay caused by carrier
Common gaps
- Mileage not claimed
- Storage rent not claimed
- Increased meal costs not tracked
- Pet costs missed
- Furniture rental not in plan
5.3.8 Mitigation reimbursement
Fire mitigation is intensive:
| Item | Typical $ |
|---|---|
| Board-up + fence | $1K-$10K |
| Tarp roof | $500-$5K |
| Secure utilities | $500-$2K |
| Initial demolition | $5K-$50K |
| Disposal | $2K-$20K |
| Antimicrobial / odor treatment | $2K-$15K |
| Equipment rental | $5K-$30K |
| Total mitigation typical | $15K-$130K |
Document + bill all. Most carriers underpay.
5.3.9 Code upgrades — substantial in fire
Major fire = full reconstruction = current code requirements:
- Sprinklers (where required)
- Smoke detectors / hardwired
- Electrical (current code)
- Plumbing (current code)
- Insulation (R-value upgrades)
- Roofing (current code)
- Hurricane straps (now typically required)
- Energy efficiency (windows, HVAC)
O&L coverage activates here. Substantial — often $10K-$100K+.
5.3.10 Common scope items missed
- HVAC ductwork cleaning + replacement
- Insulation in attic + walls
- Subfloor under burned areas
- Stair stringers (structural)
- Roof decking
- Whole-house odor treatment
- Code upgrades
- Pool / pool equipment
- Detached structures
- Landscape damage from heat / firefighting
- Electrical / mechanical full system check
- Asbestos / lead testing if older home
- Contents pre-disposal photos
5.3.11 Carrier tactics + counters
| Carrier tactic | Counter |
|---|---|
| "Cause uncertain" | Independent expert report |
| "Owner negligent" | Counter-investigation, attorney |
| "Smoke can be cleaned, not replaced" | Heavy soot + contamination evidence |
| "Single contract for everything" | 3-component breakdown — fire, smoke, water |
| "Contents under-documented" | Pre-loss baseline + thorough inventory |
| "ALE is generous, no extension" | Reconstruction reality, document delay |
| "Code upgrades not covered" | O&L coverage clause |
5.3.12 Action steps
- Day 1: Safety + board-up + cause-and-origin documentation.
- Day 1-7: Independent expert hired before carrier's locks in narrative.
- Day 1-30: Comprehensive scope w/ 3 components priced separately.
- Day 30-90: Contents inventory + ALE + mitigation invoicing.
- Day 90-180: Negotiation + reconstruction.
- Day 180+: Final closeout w/ recoverable depreciation.
- Multiple components — never let carrier roll into single low number.
Next module: 5.4 Hail Loss Playbook.
Educational. Not legal advice. Specific fire claim handling consults licensed FL professionals.