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Wildfires leave lasting emotional and financial impacts, highlighting the importance for insurance carriers to provide strong support to policyholders throughout the entire claims process.
Published on March 6, 2025
It has been more than a decade since my home in Pewaukee, Wisconsin, was destroyed by a fire sparked by a lightning strike. While I didn’t experience such extreme conditions as the two recent California wildfires—the largest Los Angeles has ever seen, where insurers have already paid out an estimated $4 billion in claims—the ordeal left a lasting impact.1
What’s often hardest to fathom are the voids and lasting scars that remain long after the flames have died down. From family heirlooms and a child’s first paintings to tiny fingerprints preserved in ornaments, cherished trophies, photo albums, or that perfectly worn-in college sweatshirt filled with years of memories, some things are simply irreplaceable, no matter the size of an insurance check.
In these moments, an insurance agent’s role goes beyond processing claims—it’s about providing reassurance, alleviating stress, and delivering the exceptional service clients deserve during one of the most challenging times of their lives.
From assets to ashes: the power of empathy when losses go beyond dollars
These lessons came home to me and my Markel colleagues during the California wildfires. Two Markel products played a significant role: our Fine Arts program managed by our International team, with roughly 50% of our book based in California, and our Classic Car program, managed by our partners at Hagerty, where a large concentration of classic cars is insured.
The claims professionals who handled these issues are among the very best in the industry, as shown by their very high net promoter scores. Their insights from processing these claims are worth sharing as agencies look to provide exceptional support to insureds.
1. Guide insureds through the emotional process.
Losing a collection of rare cars or fine art isn’t just about money; it’s about losing history, passion and legacy. Compassion and patience can go a long way, as can proactive service.
Hagerty: Care in claims handling
During the wildfires, Hagerty reached out to policyholders in the affected areas to check on their well-being and assist with initiating claims immediately. By streamlining the process, they eased some of the burden, allowing policyholders to focus on what mattered most.
A standout example from last hurricane season further illustrates Hagerty’s efficiency: A policyholder was en route to a designated claims support center in an impacted area. While on their way, they called their homeowners’ insurance provider to start the claims process. Before the provider even answered the phone, Hagerty had already processed the claim and deposited funds into the policyholder’s account.
Fine Arts claims: Expertise meets empathy
Similarly, during the California wildfires, a high-profile client contacted Markel, devastated by the loss of her art collection. Our Fine Arts team, with discretion and professionalism, guided her through documenting the loss and ensured payment was made within 24 hours. She personally thanked us for the compassionate support during such a challenging time.
At Markel, we understand the emotional and practical complexities of fine art claims. Our Fine Arts team is equipped with deep knowledge and experience, drawing from academic backgrounds in Art History and hands-on experience in galleries and art institutions. This combination allows us to provide tailored support, handling each claim with the specialized care and understanding it deserves.
Understanding policy details in advance prevents surprises and builds trust.
2. Control the flow of information.
After a loss, clients may be inclined to share details with multiple parties—family, assistants, appraisers or even social media. This can lead to complications, including potential security risks. Advise them to keep financial and valuation information private and to work exclusively through their broker and adjuster.
3. Clarify coverage before a claim occurs.
Many insureds assume they have a single, all-encompassing policy that will cover every loss. In reality, their risk is often spread across multiple policies. For example, a California wildfire home loss could be spread across the insured’s homeowners’ coverage, a fine arts policy, classic car insurance, and wildfire coverage through California’s Fair Plan.
Reviewing policies with insureds in advance helps prevent surprises and provides guidance during challenging times. A clear understanding of exclusions, coverage details, and how multiple policies work together ensures full protection. Transparency builds trust and reinforces your role as their trusted advisor.
4. Encourage proactive inventory management.
One of the biggest challenges in claims settlement is proving ownership and valuation. Agents should encourage clients to:
- Maintain an inventory list with titles, artist names, photos and appraisals.
- Use cloud-based storage to preserve receipts, appraisals and images.
- Document ownership through informal photos—family pictures with valuable paintings in the background can serve as evidence if formal documentation is lost.
For classic cars, agreed-value policies make valuation more straightforward, while having recent appraisals and market data can help expedite settlement.
Keeping a detailed inventory of art titles, artist names, photos, and appraisals will help streamline the claims process.
5. Establish key points of contact.
In the high-net-worth world, insureds may not handle claims themselves. You may be working with an assistant, estate manager or business adviser. Knowing who is authorized to make claims decisions is critical.
Additionally, clients often have preferred vendors for restoration, shipping or security. Having a pre-vetted list of trusted conservators, mitigation experts and valuation specialists can make the claims process smoother and less stressful for insureds.
Encourage insureds to take their time reviewing their losses, help them find necessary specialists, and remind them the goal is to restore as much as possible, while making the process as painless as possible.
Delivering on a promise
At Markel, we understand that replacing the irreplaceable isn’t as simple as cutting a check. True recovery requires insight and experience, swift action, and genuine empathy—especially in times of crisis.
Hearing from one Fine Arts policyholder that the “claims adjuster handled our claim quickly and compassionately” means so much, as does the comment from another: “Thank you. None of this has been easy. I appreciate your efforts to make this as painless as possible.”
By equipping your insureds with knowledge, streamlining the claims process and delivering white-glove service, you are more than an agent—you are their lifeline.
A big thank you to our partners at Hagerty for their claims stories and insights, and to Markel’s Kyle McGrath, Head of Fine Art & Specie – North America, and Brooke Mellen, Executive Claims Specialist – Fine Art, for their valuable insights into our fine arts program.
1Insurance Journal “Insurance Payouts at $4 Billion and Counting for LA Wildfires,” January 30, 2025.
The claims examples provided are for illustrative purposes only and not indicative of future results. Any claim submitted under an issued policy would be evaluated on its own merits according to the specific terms and conditions of that policy. These examples do not guarantee coverage or similar outcomes for other events and claims.