LOS ANGELES COUNTY—Survivors of the Eaton Fire urged state and county officials on July 7 to hold insurance companies accountable as they struggle to rebuild six months after the blaze destroyed their communities.
“Families are draining savings, maxing out credit cards, and watching generations of wealth evaporate because of the failures of our insurance companies,” Joy Chen, a spokesperson for the Eaton Fire Survivors Network, said.
According to Chen, 70 percent of insured survivors have faced delays, denials, or underpayments.
“These are not just statistics,” Chen said. “These are parents spending everything they have to keep a roof over their heads, their children waking up at night and still afraid. They’re seniors trying to live in homes filled with toxic contaminants because they have no place to go.”
Chen said residents affected by the fires have had to battle their insurers while trying to put their lives back together. The delays and denials were “pushing thousands of [residents] to the brink,” she said.
The group has received $10 million in funding from the California Community Foundation and Snap Inc. founders Evan Spiegel and Bobby Murphy.
The California Department of Insurance has received general allegations from wildfire survivor groups regarding State Farm’s processing of claims. Some alleged patterns include reassignment of multiple adjusters, inconsistent management of similar claims, and inadequate record-keeping or information sharing among claims teams, according to Lara.
In a July 8 update, the company said: “For six months, thousands of State Farm employees, associates, and agents have been helping customers recover from the devastating wildfires in Los Angeles. ... Given the magnitude of this event and its impact on so many families, we are still actively working with customers through the claims process. Anyone with a question or a concern should reach out to us.”
State Farm reported receiving about 13,000 wildfire-related claims from the Los Angeles fires and said it had paid out more than $4 billion to affected policyholders.
California approved a 17 percent rate increase for State Farm’s homeowner insurance customers on May 13.
Since January, the Insurance Department has recovered more than $40 million for survivors of the Eaton and Palisades fires through its intervention in formal consumer complaints. As of May 12, insurance companies had paid out nearly $17 billion to residential and commercial insurance policyholders affected by the fires, according to the agency.
Newsom acknowledged the six-month mark on July 7 at a news conference and released a social media statement before the event.
The governor said debris had been removed from all but “a few hundred” parcels burned in the two fires.
“All told, 96 percent now of all the debris has been removed,” Newsom said. “We could say, it’s substantially complete.”
A total of 12,048 homes destroyed in the fires left behind debris that needed to be cleared, according to the governor.
In all, the state received more than $5 billion in direct and indirect federal assistance, with some funds earmarked to help small businesses, Newsom reported.
“Recovery after all defines us,” Newsom said at the news conference. “It’s not what happens to us; it’s how we respond to what’s happened to us.”
The state is now moving into the rebuilding phase, Newsom said. The state and county are working on a framework that prioritizes financial pathways for survivors to return home, increases access to affordable designs, and increases available builders. Issues around permitting and addressing public infrastructure are also priorities, he said.
Los Angeles County Fire Department investigators have not yet released information on what might have caused the January fires. The department did not respond to a request for information about the investigation.
County Supervisor Kathryn Barger also spoke at the news conference, saying it was an opportunity to “look ahead.”
“My heart belongs to the community of Altadena and Pasadena,” she said. “We have a roadmap to help us navigate the next phase of recovery of all. This is going to be something that is going to help people navigate the rebuilding effort.”
Hundreds of Altadena residents, community groups, and faith leaders were expected to attend a vigil on the night of July 7, alongside fire survivors, to honor the 18 lives lost in the Eaton Fire.
Pasadena Mayor Victor Gordo also spoke at the news conference.
“What we have experienced in our region and the state of California is a moment in time,” Gordo said. “Everyone in this room played a role in helping us get through that moment in time. But we’re not finished.”
