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MORE RECOVERY INFO

Mountain View News Saturday, August 30, 2025

GOVERNOR NEWSOM SIGNS NEW LAW TO PROVIDE 
FAIR INTEREST FOR DISASTER-AFFECTED HOMEOWNERS

SURVIVORS OF THE ALTADENA FIRE TODAY CALLED 
ON THE CALIFORNIA DEPARTMENT OF INSURANCE 
TO TAKE IMMEDIATE ACTION TO PROVIDE WILDFIRE 
RELIEF AND HOLD INSURERS ACCOUNTABLE AFTER 
MONTHS OF FACING DELAYS AND DENIALS ON THEIR 
CLAIMS.

 ``Behind every delayed insurance claim is a family forced to wait in limbo,'' Victoria 
Knapp, chair of the Altadena Town Council, said in a statement. ``We're asking the Department 
of Insurance to stand with Altadena and NOT with insurers to deliver justice 
for those who've already lost so much.''

 Members of the Eaton Fire Survivors Network joined state representatives and called 
on Insurance Commissioner Ricardo Lara to comply with five requests.

 They asked the state to amend the California FAIR Plan -- an insurance option often 
seen as a last resort for homeowners in the state -- to guarantee smoke coverage. 
Wildfire survivors requested the department enforce laws to ensure families remained 
housed.

 Additionally, survivors called for more transparency in loss estimates, and to make 
the department's complaint process more transparent.

 Lastly, the group urged the department to immediately conduct an investigation into 
State Farm's handling of claims within 60 days, which have had homeowners frustrated 
for months, and to focus on com-plaints alleging insurers are limiting people's short-
term living coverage.

 ``We paid our premiums faithfully for decades, trusting insur-ers to protect us. Now 
they're using illegal delays and denials to profit from our pain. Families are maxing 
out credit cards, draining savings and living in contaminated homes,'' Joy Chen, co-
founder and CEO of Eaton Fire Survivors Network, said in a statement.

 ``We call on the California Department of Insurance to stand with survivors, not with 
the insurers breaking the law,'' she added.

 Assembly members John Harabedian, D-Pasadena, and Jacqui Irwin, D-Thousand 
Oaks, and Sen. Sasha Renée Pérez, D-Pasadena, re-buked insurance companies. They 
also highlighted AB 238, authored by Harabedian, that would implement mortgage 
forbearance for one-year while homeown-ers recover and rebuild. ``Our responsibility 
is clear: to protect survivors, give them the time and resources to rebuild their home 
and their lives, and ensure they can do so with security and peace of mind,'' Harabedian 
said in a statement.

 ``That's why I am leading this effort -- calling on the California Department of Insurance 
to act swiftly and decisively, enforce the law, expedite claims, and provide every 
protection available -- so families can recover with dignity and hope for the future,''

 Los Angeles County Supervisor Kathryn Barger, whose 5th District includes Altadena, 
thanked Harabedian for introducing the bill, which she said in a statement she 
supports.

 ``Too many continue to face undue claim delays, underpayments and denials that 
compound their hardship and loss,'' Barger said in a statement. ``Continued vigilance 
in oversight and enforcement are vital, and new reforms are needed from our state 
regulators and legislature.''

 State Farm, California's largest home insurer, is seeking a rate increase of 11%. In May, 
a judge authorized the company to implement an emergency rate hike of 17%.

 In the following month, Lara announced his department would be

conducting a market conduct exam of State Farm, citing several complaints about

how it handled smoke damage and other claims.

 ``Our goals align with fire survivors. We want individuals to recover on their own 
terms. I launched a thorough investigation into State Farm's wildfire claims, but holding 
up rate filing without a legal basis affects the integrity of our entire market, including 
wildfire survivors who need access to insurance options,'' Lara said in a statement 
Monday.

 As of Monday, State Farm has received more than 13,000 claims related to January's 
wildfires, and paid more than $4.5 billion to California customers, according to the 
company's website.

 A representative for State Farm did not immediately respond to a request for comment.

 Bob Devereux, a spokesman for State Farm, told the Los Angeles Times that the 
company was not mistreating its customers, noting an ``overwhelming majority are 
satisfied with our service.''

 ``Our goal at State Farm is to work with customers to resolve any of their concerns,'' 
Devereux told The Times.

 Copyright 2025, City News Service, Inc.

Friday, Newsom signed into law legislation to allow homeowners who receive insurance payments 
for lost or damaged property to receive the interest accrued rather than lenders. 

LOS ANGELES — As part of the state’s continued efforts to support Los Angeles firestorm survivors, 
Governor Newsom signed into law Assembly Bill 493 (Harabedian) to ensure homeowners, 
not lenders, benefit from the interest earned on insurance payouts, particularly those impacted by 
California’s most destructive wildfires. 

The legislation signed today corrects an inequity that allows lenders to keep interest accrued on 
insurance payouts held in escrow after a disaster.

“Homeowners rebuilding after a disaster need all the support they can get, including the interest 
earned on their insurance funds. I am proud to deliver this commonsense solution to ensure survivors 
receive every resource available to help them recover and rebuild.”

Governor Gavin Newsom

After a disaster, insurance payouts are often held in escrow while construction is ongoing, which 
can take months or even years. 

While California law requires lenders to pay homeowners interest on escrowed funds for property 
taxes and insurance premiums, it previously did not extend this requirement to hazard insurance 
payouts held in escrow. The new law explicitly requires lenders to pay homeowners the interest 
earned on post-loss insurance payouts, just as they do for other escrowed property expenses. 

Why This Matters:

 Fairness: Homeowners should receive the interest their insurance funds generate—not lenders.

 Disaster Recovery: Provides much-needed financial support for wildfire victims rebuild ing their homes and communities.

 No New Burdens on Lenders: Simply aligns insurance payout escrow rules with California’s

 existing interest on impound account law.

 Protecting Homeowners’ Rights: Ensures insurance funds are treated the same as other escrowed property expenses.

This legislation ensures that homeowners benefit from the interest earned on insurance funds, 
particularly those impacted by California’s most destructive wildfires.

Learn more about California’s rebuilding and recovery efforts after the LA Fires


EMERGENCY PROTECTIONS IN PLACE UNTIL 
OCTOBER 1, 2025 FOR SHORT-TERM RENTALS, 
HOTELS, AND MOTELS

To support wildfire survivors and ensure access to emergency housing, Executive 
Order N-28-25 extends tenancy and occupancy protections to October 1, 2025 for 
people displaced by the wildfires.

The Order allows wildfire evacuees to continue to be considered short-term occupants 
rather than tenants when they stay beyond 30 days in short-term rentals, hotels 
and motels.

Contact the Los Angeles County Department of Consumer & Business Affairs' Housing 
and Tenant Protections team at 800-593-8222 if you have questions.


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