Los Angeles Wildfire Recovery: Financial Resources and Steps for Homeowners

As I write this, the Palisades fire is only 13% contained and is a stone’s throw away from my parent’s home. I have multiple friends, a team member, and clients who have lost everything, with barely enough time to get their loved ones to safety. My parents and their dogs have evacuated to my 2,000 square foot home in the “flats” of West LA (taking the number of humans in my house to 7 and dogs to 4). My heart breaks for the Palisades, Altadena, and all who have suffered such catastrophic loss. These feel like extraordinary times.

One of the hardest things as a human being in a time like this is feeling out of control. Our amygdala is activated and our “fight or flight” response is on high alert. And if you have experienced loss or are at risk of it, you have lots of questions on the money of it all. To help you sort through what comes next in the world of your finances, here are some suggestions on steps to take to take back an iota of control.

Short Term Actions

File an Insurance Claim: This will get the financial loss piece started. You will also be able to understand the details of your policy, including what details they will need in order to process your claim. Ask all the questions. Know what you are covered for and what is excluded. If you need financial help immediately, California law requires your insurance provider to pay out 1/3 of your contents coverage immediately due to California being in a state of emergency.

If you have a California FAIR plan policy and a supplemental policy, know what each covers. Be prepared for this whole process to take months or even years. We know that it took those who suffered total loss in the Tubbs fire in Northern CA several years to be fully reimbursed.

File a FEMA Claim: FEMA may be able to help with non-covered losses and/or provide short term financial assistance. Note that FEMA won’t insure costs covered by insurance (i.e. no double dipping). In addition to covering any losses not covered by insurance, you can be approved quickly for “Serious Needs Assistance” for essential items like food, water, baby formula, breast feeding supplies, medication and other serious disaster-related needs. File a claim by going to disasterassistance.gov.

Call your Mortgage Company: You are expected to continue to pay your mortgage, even if there is no home left. This feels like adding insult to injury. However, call your lender and see if there are accommodations that can be made, such as a hardship forbearance.

Document Displacement Expenses: Start recording your expenses and maintaining receipts of all the costs you have incurred since you evacuated. If you left in your flip flops and pajamas, you probably need to get clothes. Did you need to replace your eyeglasses, medication, or anything else that was left at home? Catalogue it. If you have any loss of use coverage in your insurance, you will need receipts to get reimbursed.

** A special note for those covered exclusively by the California FAIR Plan: While traditional insurance companies cover a loss of use stipend, the California FAIR Plan is much more bare bones. It may pay for the rental of a replacement dwelling up to certain limits, but typically does not include things like mileage, meals, pet boarding, etc. Please take that into consideration when evaluating relocation options.

Create a Home Inventory: Build out a document listing your home contents. Most insurance policies insure household items up to a certain level. You will need proof of the household items that you lost to fire. The insurance companies will want more information than you might be able to focus on at the moment, but I recommend starting room by room and at least listing out all the items as best as you can remember. Take the kitchen to start: three Viking ovens, a set of Le Creuset cast iron pans, wedding china, etc. Brain dump whatever you can think of, have friends detail what they can remember, and examine any pictures if you have them. United Policyholders has a sample spreadsheet you can reference. United Policyholders is a nonprofit advocacy organization for victims of natural disasters and has an array of resources for fire victims. Their Disaster Recovery Handbook has resources and information to help you inventory your belongings and much, much more.

Harness Your Credit Card Benefits: Many cards cover purchase protection for recent purchases. This might seem like a drop in the bucket, but if you made any medium to large purchases in the last few months, this can be a relevant benefit. Two of my favorite cards, the Chase Reserve and the AmEx Platinum offer 120 and 90 days purchase protection, respectively.

Create a Loss Journal and Take Pictures: Time will move quickly and slowly all at once. Start recording what you are having to do (i.e. where you have had to move to, what you’ve spent, etc.). Also include notes on who you called (the company and the person you spoke to, first and last name and badge/employee number), the date and time of the call, what they said, etc. When you are able to get back to your property, take lots of pictures. This helps document the degree of loss. 

Leverage Retail Discounts: Don’t hesitate to reach out to retailers to see if they offer any discounts for those impacted by the fires. Since you don’t have time to wait for any sales, many companies are becoming generous with replacement offers.

Understand Workplace Benefits: Some employers are able to offer additional benefits and accommodations to employees impacted by wildfires. Check with your company’s HR department to understand if you qualify for any of these benefits.

Replace Important Documents: If you evacuated with little to no prep time, you may need birth records, driver’s licenses, or other records replaced. LA County is currently providing assistance for the replacement of these documents free of charge – call 800-201-8999 (Option 1 followed by Option 2) or Email recorder@rrcc.lacounty.gov.

Rely on Your Community: My social media has been full of local businesses offering food, clothing, and other resources to displaced Angelenos. Feeling like we are all in this together can be a silver lining in a tough time.

Mid-Long Term Actions

Understand Your Tax Rights: A state of emergency has been declared for the state of California for 2025. This means that there will be tax relief in terms of filing deadlines, relief from penalties/interest, etc. Keep abreast of changes both federally and at the state level to see what you qualify for. If you don’t currently work with a CPA, this might be the year to make sure you leverage all that you qualify for.

Accept Federal Help: If FEMA offers to clear the site when the time comes, consider saying yes: This could save you needing to pay additional clearance fees later on.

Advocate for Your Settlement Offer: You do not need to accept the offer put forth by your insurance adjuster. You can reach out to the California Department of Insurance to engage in a mediation program to come to an agreement on a fair price. There are independent public adjusters who can help with your claim. You can also engage an attorney to fight for you.

Understand your Policy Rights: California law clearly states that an insurance company is required to pay you out the same amount whether you decide to rebuild or buy a new home. However, other states have less clear laws, and agents from other states have creatively interpreted the California law, that could result in a smaller payment for those who opt to not rebuild. Make sure you understand the details of your policy – replacement cost is VERY different from a depreciated cost. Whether you buy or rebuild, these details matter. The independent nonprofit United Policyholders has a plethora of step-by-step information to help victims through the long and complex journey of recovery. 

Los Angeles: Big City, Small Town Heart

I love Los Angeles. It’s the most populous county in the United States, with a population larger than 39 states. It is home to a diaspora of people, cultures, businesses, and industries. Whatever you want to do or be, you can do it here. It’s a city that can break your heart but also one you can’t seem to resist. We have some of the best ramen, empanadas, baklava, and Pad Thai you will ever have outside of the countries that created them. We have so much to offer.

But big as we are, and as monumental of a tragedy as this is, it feels like we are any small town banding together to take care of each other.

Stay safe out there, LA family. We will come back from this.

Additional Helpful Resources

• “Fire recovery: Victims and evacuees can get started with these resources” by Jill Replogle
• “If you lost your home or business in the wildfires, here’s what to do next” by Andrea Chang and Caroline Petrow-Cohen, Los Angeles Times
• “Insturance Resources for California: Self Help Tips” from United Policyholders
• “State of Emergency Tax Relief” from California Department of Tax and Fee Administration
• Roadmap to Recovery from United Policyholders
• 2025 California Wildfires – Insurance Claim and Recovery Help from United Policyholders