Will Joining a Wildfire Lawsuit Hurt My Insurance Claim?

If you’ve experienced property damage or loss due to a wildfire, natural disaster, or another event, you may be considering legal action against a responsible party—while also filing an insurance claim. A common concern we hear is: "Will joining a lawsuit impact my insurance claim?"

The short answer is: No, joining a lawsuit should not hurt your insurance claim.
Let's break down why that’s the case—and what to consider as you move forward.

Understanding the Difference: Insurance Claims vs. Lawsuits

Your insurance claim is a request for compensation through your private insurance policy—usually to cover property damage, living expenses, or losses directly tied to your policy’s coverage.

A lawsuit, on the other hand, is a legal action filed against a third party (like a utility company or manufacturer) whose negligence may have caused or contributed to the damage. These are separate processes—and one does not cancel out or interfere with the other.

Can You Do Both?

Yes. Many people file an insurance claim and also pursue legal action through a lawsuit. In fact, doing both may give you the best chance of full recovery—especially if your insurance doesn’t cover all your losses or if your claim is denied.

For example, in many wildfire cases:

• Insurance may only cover a portion of rebuilding costs
• Claims for emotional distress, loss of business income, or long-term health effects may not be fully covered
• Lawsuits may offer additional compensation for these gaps

Will My Insurance Company Penalize Me?

Your insurance company cannot legally penalize you for joining a lawsuit—especially if the lawsuit is against a third party, not your insurer. In fact, in some cases, your insurer may have its own claims against those same third parties and may benefit from a successful lawsuit.

However, it’s important to:

• Continue cooperating with your insurance adjuster
• Keep records of all communications
• Let your legal team guide you through both processes

What If My Claim Was Denied or Underpaid?

If your insurance claim has been denied, delayed, or underpaid, a lawsuit may be your only remaining path to fair compensation. Our legal team can help review your insurance documents, assess damages, and determine whether additional legal action is appropriate.

Still Have Questions?

You don’t have to navigate this alone. Our wildfire attorneys can review your situation, explain your options, and help you understand whether joining a lawsuit is the right path forward. There’s no cost to speak with us—and you don’t pay unless we win.

Contact Morgan & Morgan Today

If you’ve been impacted by a wildfire or disaster and want to know how legal action might affect your insurance claim, reach out to us today. We’re here to walk you through every step, answer your questions honestly, and fight for the compensation you deserve.