Fire Damage

The Highest-Value Claims in Residential Restoration

Fire damage encompasses structural damage from flames, smoke damage throughout the property, and water damage from firefighting efforts - making fire claims the most complex and highest-dollar claims in residential restoration. A single fire loss involves three distinct damage categories, each requiring different trades, different line items, and different remediation protocols. The result is a claim that regularly reaches six figures on a residential property.

For contractors and supplement writers, fire claims represent the biggest revenue opportunity per project - but also the most demanding documentation and coordination requirements.

Three Types of Damage in Every Fire Claim

Fire claims are never just about the fire. They include at least three distinct damage categories, each with its own scope and Xactimate line items:

Damage Type	What It Covers	Trades Involved
Structural fire damage	Framing, roof, walls, foundation	Demolition, framing, roofing, drywall
Smoke damage	Soot, odor, discoloration	Cleaning, painting, HVAC, contents
Water damage from firefighting	Saturated materials, standing water	Mitigation, flooring, drywall, mold remediation

Each category needs to be scoped separately. Carriers that bundle smoke damage into the structural scope or ignore water damage from firefighting are under-scoping the claim.

Why O&P Is Strongest on Fire Claims

The overhead and profit argument hinges on the number of trades involved in the repair. Fire claims typically involve more trades than any other residential claim type: demolition, structural repair, roofing, electrical, plumbing, HVAC, painting, flooring, drywall, and contents cleaning. When the carrier reviews a fire claim with 8-10 trade categories, the three-trade threshold for O&P is not even a question.

This makes fire claims the strongest case for full O&P approval. The number of trades is documented in the estimate itself. The carrier would have to argue that a general contractor is not needed to coordinate 10 different trade crews - a position that is nearly impossible to defend.

Scoping and Documentation Standards

Fire claims demand more documentation than any other claim type. Before demolition starts, photograph everything. Every room, every surface, every component. Once demolition begins, the pre-loss evidence is gone. Document the extent of smoke penetration, test for hazardous materials, and photograph water damage from firefighting before mitigation dries it out.

The claims process on a fire loss runs longer than a typical roof claim. Expect 6-12 months from FNOL to final settlement. Additional living expenses for the displaced homeowner add up quickly, so getting the claim moving fast matters for everyone involved. Having the carrier's scope in an ESX file from day one - instead of spending hours converting a PDF - accelerates the supplement timeline on claims where every week of delay costs the homeowner money.