Fire survivors demand insurance accountability six months after Eaton Fire

ALTADENA, Calif. (KESQ) - On the six-month anniversary of the wildfires that devastated parts of Los Angeles County, members of the Eaton Fire Survivors Network today urged state officials to hold insurance companies accountable for alleged mishandling of claims.

At a news conference held at the Good Neighbor Bar in Altadena, the group called on Gov. Gavin Newsom and Insurance Commissioner Ricardo Lara to delay any decision that would allow home insurers, including State Farm,  to implement additional rate hikes. They also requested that the state expedite an investigation into insurers' handling of claims.

The Eaton Fire burned more than 14,000 acres, killed 18 people, and destroyed nearly 7,000 homes and businesses.   

Joy Chen, a spokesperson for the group, said a forthcoming study by the Department of Angels -- a nonprofit advocating for fire survivors -- found that six months after the fires, 70% of insured survivors have faced delays, denials, or underpayments that have derailed their recovery.

The nonprofit received $10 million in seed funding from the California Community Foundation, and Snap Inc. founders Evan Spiegel and Bobby Murphy.   

"Families are draining savings, maxing out credit cards and watching generations of wealth evaporate because of the failures of our insurance companies,'' Chen said, whose home was damaged by smoke from the fires.   

"These are not just statistics. 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,'' she added.  

According to Chen, the insurance industry is one of the "richest and most powerful lobbies in California,'' spending up to $6 million a year to lobby state leaders.   

"None of us asked to battle our insurers while trying to protect our kids and put our lives back together, but their delays and denials are pushing thousands of us to the brink,'' Chen said. "They left us no choice to stand up and fight back."

Lara previously announced that the state launched an investigation into whether State Farm, California's largest home insurer, has been delaying or mishandling claims related to smoke damage and contamination.   

State Farm insures about one million customers in the state. The company said it would cooperate with the review, noting it has received about 13,000 claims from January's fires and has paid out approximately $4 billion to customers.

Two months ago, the state approved a 17% premium increase for State Farm policyholders statewide, down from the company's requested 22% hike. The new rates took effect in June and included a 38% increase for rental owners and 15% for tenants.

State Sen. Sasha Renee Perez, D-Pasadena, joined the Eaton Fire Survivors Network at Monday's event. Perez had called on Lara to launch the probe into insurers' management of claims.

"I stand with you in calling on Gov. Newsom and Insurance Commissioners Lara: No more delays. No more granting rate increases. Use every tool available, expedite this investigation, release the findings and compel insurers to pay their claims before any rate hikes are even considered,'' Perez said.

Gov. Newsom's office marked the six-month anniversary of the fires with a statement on social media: "California showed what's possible when the government moves at the speed of need: clearing debris from over 10,000 parcels faster than any major wildfire in U.S. history. Plus, all water systems have been restored, and all school campuses affected by the fire have been cleared."  

"But there's more work to do,'' the statement continued.   

Meanwhile, hundreds of Altadena residents, local community organizations and faith leaders are expected to host a vigil alongside fire survivors to honor the lives lost in the Eaton Fire.

The event is expected to begin at 7 p.m. at 181 E Los Flores Dr. at the home of high school football coach Zaire Calvin's sister, Evelyn McClendon, whose home and life were among the casualties of the fires.