Fire Claim Increased from $75K to $490K in Millbrae

The Situation

A tenant-occupied single-family residence in Millbrae, California sustained a significant fire loss originating in the kitchen. The fire rapidly spread within the kitchen area, causing extensive direct damage to cabinetry, finishes, and appliances.

As the fire intensified, heat and combustion gases traveled into the attic, resulting in visible charring and structural compromise to framing members and roof components.

Heavy smoke migrated throughout the home, impacting multiple bedrooms and contaminating walls, ceilings, and building systems. The widespread smoke intrusion and structural involvement significantly increased the scope of necessary repairs.

Due to the extent of fire, smoke, and structural damage, the property was rendered uninhabitable and required comprehensive restoration.

The Insurance Company's Response

Following the loss, the insurance carrier assigned an independent adjuster to inspect the property and prepare an estimate. The adjuster produced a repair estimate totaling $75,097.22, which significantly understated the true scope of damage.

The carrier’s estimate focused primarily on visible fire damage within the kitchen area and failed to account for the full extent of loss throughout the structure. Notably, the estimate did not include:

Structural repairs to fire-damaged attic framing and roof components

Widespread smoke damage to bedrooms and other affected areas

Necessary demolition to access concealed damage

Code-required upgrades as mandated by current California building standards

Additionally, no engineering evaluation was conducted to assess the extent of structural compromise, despite clear evidence of fire and heat damage extending into the attic space.

As a result, the carrier’s initial assessment failed to reflect the true scope and cost required to properly restore the property.

What We Found

Upon conducting a comprehensive inspection, our team identified significant damages that were not accounted for in the carrier’s initial estimate.

Through detailed documentation, collaboration with a licensed contractor, and the development of professional engineering plans, we established that the fire had caused substantial structural damage within the attic, including compromised framing members requiring repair and replacement.

We also documented widespread smoke contamination affecting multiple areas of the home, including bedrooms and concealed cavities, which necessitated extensive demolition, cleaning, and restoration well beyond what was originally scoped.

In addition, our evaluation incorporated current California building code requirements, which were entirely omitted from the carrier’s estimate. These included necessary upgrades to insulation, structural components, and life-safety systems required to bring the property back to pre-loss condition in compliance with applicable codes.

By fully accounting for structural damage, smoke migration, code compliance, and proper restoration methodology, we demonstrated that the true scope of loss far exceeded the carrier’s initial assessment.

The Result

After thorough documentation and continued negotiations, we successfully secured a full policy limits settlement of $490,600, compared to the carrier’s initial estimate of $75,097.22.

This resulted in a recovery increase of over 550%, ensuring that all necessary repairs, structural restoration, and code-required upgrades could be properly completed.

With the support of detailed engineering plans and contractor validation, the claim was resolved in a manner that fully protected the property owner’s interests and allowed for complete restoration of the home.