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Although FEMA provides coverage for uninsured and underinsured fire victims, the government doesn't clearly define what it considers underinsured, and in many instances, FEMA will demand money back if the agency learns a fire victim has any kind of insurance, panelists said. In those instances, policyholders could not only be forced to return FEMA funds, but they can also be charged with a misdemeanor, panelists said.

"And when FEMA comes to you and asks for the money back, it does not ask nicely," Riddle said. "They come back at you saying, 'You defrauded the federal government by taking funds you should have not.'"

Any fire victim who is insured and has already received FEMA funds should immediately notify and disclose their insurance policy to FEMA and document their communications with FEMA, the panelists said. Riddle also noted that FEMA funds cannot be used to pay for items that were funded by GoFundMe or other donations.

If a fire victim has any questions about whether they qualify for FEMA payments, they should meet a FEMA representative in person, the panelists added.

"Be 100% transparent about what your coverage is," Paletz said. "You don't want to mess around with it — they will charge you with misdemeanors — and get it all in writing."

Tips on Submitting Insurance Claims

Anyone whose home has been damaged by the fires, regardless of the extent of the damage, should immediately file claims with every insurance provider they have, including policies for auto insurance, homeowners insurance, business insurance, renters insurance, and boat insurance, as well as supplemental insurance, according to the panelists. That's because some policies have unusual provisions that may cover some losses, they said.

Once a claim is filed, insurance companies are legally required to respond within 15 days, and that's true for any questions a policyholder might have, according to Riddle. The insurance company will then assign the policyholder an insurance representative, and if an insurance provider isn't responding timely, fire victims should tell their insurance agent who sold them their policy, because they tend to have clout and can speed up the process, Paletz said.

Displaced policyholders should also be sure to update their contact information with their insurer as soon as possible, and anyone without a mailbox should open a post office box that they can use consistently for the years to come as they go through the insurance claims process, the panelists said.

Once assigned an insurance representative, policyholders should also request copies of all policies, which come with a one-page declaration that summarizes key policy terms and limits, and any riders or endorsements, which serve as add-on coverage, panelists said.