With the McCauley Springs fire in the Santa Fe National Forest currently affecting Sierra Los Pinos, there is a lot in the news over the last day or so. Given the situation, we want to review how a standard homeowners policy typically responds to a civil authority evacuation order.

Please Note: 

This guidance is meant to provide a general idea of how a common homeowners policy might respond. It does not confirm coverage. Every insurance policy is different, and to officially determine coverage, a claim must be filed and confirmed by a claims adjuster.

Understanding “Civil Authority” Coverage

• Common policy language often states: “If a civil authority prohibits you from use of the residence premises as a result of direct damage to neighboring premises by a cause of loss we cover, we cover the additional living expenses as provided for no more than two weeks during which use is prohibited.”

Here is what that means in plain English:

• Evacuation Without Home Damage: This specific coverage applies when you are ordered to evacuate but your home itself does not sustain any physical damage.
• The “Neighboring Premises” Gray Area: Standard policies usually leave the term “neighboring premises” undefined, which can create a gray area during widespread wildfires.
• Direct Damage vs. Evacuation: Keep in mind that smoke is considered physical damage. If your home suffers direct damage from smoke or fire, your Additional Living Expenses (ALE) coverage typically extends much longer—commonly up to 12 months.

A Quick Tip on Deductibles

• Most insurance companies will apply your standard policy deductible to this type of claim. If you are forced to evacuate and temporarily move into a hotel, be sure to save all of your receipts until your deductible is reached.

We are here to help answer your questions and navigate these stressful situations. Please don’t hesitate to call us. Stay safe.