Fire damage: the underpayment playbook
Fire and smoke claims are where lowballing escalates fastest. Carriers want to clean instead of replace, repair instead of rebuild, and limit ALE to the day repairs are 'reasonably possible.'
How carriers underpay fire damage claims
- Recommending HEPA-clean instead of replacement on porous materials with smoke odor
- Denying ozone or hydroxyl treatment on the basis that 'it's not necessary'
- Limiting Additional Living Expense to 'reasonable' duration without policy citation
- Excluding contents that can be cleaned 'in place' even when chain-of-custody is broken
- Ignoring code-upgrade requirements (sprinklers, hard-wired smokes) on partial rebuild
The industry standard you can cite
IICRC S700
Standard for Professional Fire and Smoke Damage Restoration
IICRC
**Key provisions:** Defines smoke residue types (dry, wet, protein, oil/fuel) and cleaning methodology per type. Specifies HVAC system cleaning required when smoke is present in supply ducts. Addresses ozone vs. hydroxyl treatment. Content pack-out, off-site cleaning, and atmospheric deodorization protocols.
**How to cite in a carrier dispute:** Use when carrier denies HVAC duct cleaning, pack-out, or treatment beyond surface wipe-down. Smoke residue type determines required method — wrong method = continued contamination + warranty exposure.
Recent court opinions on fire damage disputes
Generation Changers Church v. Church Mutual Ins. Co.
Universal Property & Casualty Insurance Company v. Nelson Rodriguez and Yoseida Cuevas
Roland Pour, Sr. v. Liberty Mutual Pers. Ins. Co.
In Re American Risk Insurance Company, Inc. v. the State of Texas
Cons De Tit Del Cond Monte Real v. Mapfre Praico Insurance Company
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