Active Crisis Updated February 9, 2026
LA Wildfire Claims Crisis -- Palisades & Eaton Fires (January 2025)
16,000+ structures destroyed and $30B+ in insured losses from the January 2025 Los Angeles wildfires. FAIR Plan policyholders and USAA members have filed lawsuits alleging systematic underpayment of claims. Commissioner Lara has ordered a moratorium on policy cancellations in fire zones through January 2027. State Farm, Allstate, and other major carriers had already withdrawn from the California market before the fires, leaving FAIR Plan as the insurer of last resort for millions of homeowners. If you are a wildfire victim, use the calculators below to evaluate your claim and generate dispute letters if your insurer is underpaying.

Bad Faith Calculators

Calculate claim value, bad faith damages, and interest owed

Insurance Claim Calculator

Calculate total value of your property/casualty insurance claim

Total Claim Value
$0
Covered Loss $0
Less Deductible -$0
Out-of-Pocket Expenses +$0
Less Amount Paid -$0
Amount Still Owed $0

Bad Faith Damages Calculator

Estimate potential damages in a bad faith lawsuit

Potential Bad Faith Damages
$0
Contract Benefits $0
Economic Damages $0
Emotional Distress $0
Punitive Damages (est.) $0
Note: Punitive damages depend on insurer's financial condition

Delay Interest Calculator

Calculate interest owed for delayed claim payment

Total Interest Owed
$0
Principal Amount $0
Days Overdue 0 days
Interest Rate 10%
Total with Interest $0

Deadline Violation Checker

Check if insurer violated California timing requirements

California Insurance Deadlines

Insurers must meet these regulatory deadlines under CA Code of Regulations Title 10

15 Days - Acknowledge Claim

  • Insurer must acknowledge receipt of claim within 15 days
  • Must be in writing
  • Must provide claim number
  • Must identify adjuster assigned

40 Days - Accept or Deny

  • Must accept or deny claim within 40 days
  • If denied, must explain reasons in writing
  • Must cite policy provisions for denial
  • Can extend with good cause and written notice

30 Days - Pay Claim

  • Must pay within 30 days of acceptance
  • Partial payments must be made promptly
  • Cannot delay payment while investigating disputed portions
  • Interest accrues after 30 days

LA Wildfire Claims Alert (Active)

  • LA wildfire claims (Jan 2025): 16,000+ structures destroyed. FAIR Plan and insurer underpayment lawsuits filed.
  • Commissioner Lara ordered moratorium on policy cancellations in fire zones through Jan 2027
  • State Farm, Allstate, and other major carriers withdrew from CA market -- FAIR Plan now insurer of last resort for millions
  • Wildfire victims: document all losses immediately and do not accept first offers without independent appraisal

Insurance Dispute Response Generator

Generate professional responses to unfair insurance practices

Select the issue to generate your response:

Claim Denied

Insurer denied your claim without proper justification

Lowball Offer

Insurer offered less than your claim is worth

Unreasonable Delay

Insurer is taking too long to process your claim

Excessive Investigation

Insurer demanding unreasonable documentation

Reservation of Rights

Insurer sent a reservation of rights letter

Filing Bad Faith Complaint

Formal complaint to California DOI

LA Wildfire Claim Dispute

Dispute underpayment of Palisades/Eaton wildfire claim (Jan 2025)

Enter your details:

Insurance Demand Letters

Generate formal demand letters for insurance disputes

Your California Insurance Rights

Key protections under California Insurance Code and Fair Claims Regulations

Insurance Code 790.03

  • Prohibits unfair claims practices
  • Must not misrepresent policy coverage
  • Cannot fail to acknowledge claims promptly
  • Must attempt fair settlement when liability is clear

Bad Faith Indicators

  • Denying claim without investigation
  • Lowballing without explanation
  • Unreasonable delays
  • Misrepresenting policy terms
  • Forcing litigation for valid claims

Recoverable Damages

  • Contract: Full policy benefits owed
  • Consequential: Expenses caused by delay
  • Emotional: Mental distress damages
  • Punitive: For malicious conduct
  • Attorney fees: Under Brandt v. Superior Court

LA Wildfire Claims Crisis (Jan 2025)

  • Palisades & Eaton fires: 16,000+ structures destroyed, $30B+ in insured losses
  • FAIR Plan lawsuits: Policyholders suing FAIR Plan for systematic underpayment of wildfire claims
  • USAA class action: Class action filed against USAA for lowball settlement offers to wildfire victims
  • Commissioner Lara moratorium: Ordered insurers not to cancel policies in fire zones through Jan 2027
  • Market withdrawal: State Farm, Allstate, and other major carriers withdrew from CA market before fires -- FAIR Plan now insurer of last resort for millions

Need Help Fighting Insurance Bad Faith?

Our California insurance bad faith attorneys can evaluate your case for free. We work on contingency - no fee unless we win.

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