Ruiz & Smart represented a Washington family whose home and belongings were completely destroyed in a catastrophic wildfire. What should have been a straightforward homeowners’ insurance claim instead became a years-long ordeal marked by delay, underpayment, and a failure by the insurer to meet its basic obligations to its insureds.
After the wildfire reduced the family’s home to ashes, they promptly reported the loss and relied on their insurer to help them rebuild their lives. The policy promised coverage for the dwelling, personal property, and additional living expenses necessary to maintain the family’s standard of living during repairs. Despite those promises, the insurer’s handling of the claim fell far short.
The family remained displaced for years. At various points, they were forced to live in hotel rooms, travel trailers, sheds, and other makeshift arrangements while attempting to keep their children safe, housed, and in school. Utility lines froze in winter conditions. Basic necessities—such as consistent access to bathrooms and showers—were often unavailable. The prolonged instability took a severe emotional and financial toll.
Our investigation revealed systemic failures in the insurer’s claims handling. Payments for structural repairs were delayed and issued in piecemeal fashion, preventing timely reconstruction. Personal property valuations excluded hundreds of items, relied on improper depreciation, and failed to account for real-world replacement costs. Additional living expense benefits were terminated prematurely, forcing the family to rely on relatives and temporary housing despite ongoing repairs.
Ruiz & Smart brought claims for breach of contract and insurance bad faith under Washington law, including violations of the Insurance Fair Conduct Act and Consumer Protection Act. We worked closely with expert witnesses to document the full scope of unpaid benefits and the downstream harms caused by the insurer’s conduct. The evidence showed that the family’s prolonged displacement and mounting hardship were not the result of the wildfire alone, but of avoidable delays and unreasonable claims decisions.
On the eve of trial, following extensive litigation and court proceedings to protect the interests of minor children, the case resolved through a confidential settlement. While the terms are not public, the resolution fully accounted for both contractual losses and extra-contractual harms, allowing the family to move forward after years of uncertainty.
This case reflects Ruiz & Smart’s commitment to holding insurers accountable when policyholders are most vulnerable—and to helping families rebuild not just their homes, but their stability and dignity after disaster.