One year later, California wildfire recovery still has a long way to go

Takeaways:

• APCIA calls for greater risk mitigation in rebuilding efforts
• Eaton Fire Survivors Network says survivors are still due 'billions'
• Regulator, legislators propose new laws to accelerate insurance payments

One year after the Eaton and Palisades wildfires in Los Angeles, the insurance industry and fire survivors paint contradictory pictures of the region's recovery.

According to a Morningstar report, the fires caused $40 billion in insured losses, accounting for nearly half the $89 billion in catastrophe losses throughout the U.S. over the course of 2025. That figure, in turn, accounts for 83% of the $107 billion in global catastrophe losses for the year.

The American Property Casualty Insurance Association (APCIA), representing the home insurance industry, in a January 7 statement, pointed to how much insurers have paid out in claims, while stressing the need to mitigate risk when rebuilding. 

LinkedIn

"Insurers have been working hard for a year to help families recover from these historic wildfires, paying over $22.4 billion in claims so far," said Karen Collins, APCIA vice president, property & environmental. "California is now at a pivotal moment. As over 16,000 homes must be rebuilt, the state has a rare opportunity to reshape wildfire resilience and prevent future firestorms from causing similar massive destruction."

An advocacy group for survivors of the fires said many claims still have not been paid, and claims that were paid took several more months than they should have. Insurers, along with the federal government and the region's electric utility, Southern California Edison, that has admitted responsibility for causing some of the fires, still owe survivors "tens of billions of dollars," said Joy Chen, executive director of the Eaton Fire Survivors Network (EFSN), in the group's January 7 press conference. 

LinkedIn

According to Cal Matters, Edison's wildfire compensation fund has paid 82 victims out of 1,800 applicants, as of January 6.

In the weeks immediately after the fires, Chen said, "a disturbing truth emerged. Whether a family was recovering or not depended largely on one thing: which insurance company they had. For families insured by the worst performing companies, the trauma compounded day after day." After EFSN held a press conference in April to urge California insurance commissioner Ricardo Lara to hold State Farm accountable for payment delays, the insurer announced it would increase payment from 50% to 65% for claims without inventories of losses.

"That single change meant $90 million finally reached families who had been waiting for months," Chen said. However, as payment delays continued, EFSN presented its "State Farm Files," of evidence of claims delays, underpayments and denials to Los Angeles County government, which in turn opened its own probe of State Farm on November 13, 2025. This, Chen said, led to more claims payments suddenly being made.

"After the investigation launched, suddenly, my texts were filled with people who had gotten checks FedEx'ed to their house for $2 million, $200,000, suddenly arriving, that they have been fighting for up to 10 months," Chen said. "Several of them told me that their adjusters specifically told them that upstairs said it's time -- that changed their guidance and said, be lenient now, pay out the claims. When all these checks started coming in, we realized they could have paid all along, and they just needed the incentive to do so."

Kathryn Barger, chair of the Los Angeles County Supervisors, said at the EFSN press conference that the county's efforts on behalf of fire survivors would continue. "One year after the Eaton fire, recovery is still very much a work in progress. Many families remain displaced, and we know the insurance process has been more difficult and time consuming than anyone should have to endure," she said, adding a comment about State Farm's actions: "And I wouldn't say 'lenient.' They need to do their job. Most people get fired for not doing their job." 

Both APCIA and EFSN recounted the damage from California wildfires preceding last January, and what it meant for homeowners. APCIA's statement noted that the state has lost more than 36,000 structures to wildfires in the past 10 years, and that 1.3 million homes are still at high risk for wildfire damage. EFSN's Chen noted that only 38% of homes lost in the five major wildfires preceding the Eaton and Palisades fires have been rebuilt. "We reject a future where only the wealthy get to come back home," she said.

Also on January 7, Commissioner Lara announced new proposed legislation to speed up wildfire disaster recovery for homeowners and renters. Other legislation regarding wildfire insurance claims has also been proposed, and a lawsuit by Consumer Watchdog regarding the state's insurer of last resort's assessments for the costs of last January's fires is still pending. Three new bills follow seven new laws that took effect on January 1.

Related stories:

California moves to build public wildfire catastrophe model

State Farm rate increase hits judicial headwinds