REP. CHU AND SEN. SCHIFF LEAD CALIFORNIA DELEGATION MEMBERS IN CALLING ON MAJOR INSURANCE COMPANIES TO ENSURE LOS ANGELES FIRE VICTIMS RECEIVE FAIR COMPENSATION

The following information was released by the office of California Rep. Judy Chu:

Today, Representative Judy Chu (CA-28) and Senator Adam Schiff (D-CA) led 14 members of the California congressional delegation in demanding answers from nine of the state's largest insurance companies about the barriers delaying Los Angeles fire survivors from receiving fair compensation and benefits.

This letter follows multiple concerning reports from Eaton and Palisades fire survivors describing ongoing challenges with their insurance claims, including arduous itemization requirements, repeated reassignment of claims adjusters, and delayed claims processing and payouts that fall far below home values. These reports raise serious concerns about potential violations of California's Unfair Competition Law.

"In addition to the financial and emotional trauma of losing their homes, survivors of the Eaton and Palisades fires are facing mountains of paperwork and unanswered calls to their insurers. We have received outreach from constituents who shared that they have been required to itemize their material losses and provide receipts corresponding to every item, which can also include requirements of photographic evidence of prior ownership an impossible task even for those who have not lost everything," wrote the lawmakers.

"Rather than creating more hoops to jump through, insurers must practice transparency and work quickly to ensure wildfire victims are paid what they are owed. On behalf of California policyholders, we are writing to request information on how insurers will reform their practices and expedite their processes in light of the fact that many policyholders are still awaiting payouts and facing enormous administrative burdens even a year after the fires began," continued the lawmakers.

The lawmakers are seeking additional information on how insurers are determining itemization requirements, the number of adjusters assigned to claims, how overall payouts are determined, and what steps they're taking to ensure adherence to California's Unfair Competition Act.

As recovery from the Eaton Fire continues, Rep. Chu continues to push for proper insurance coverage and compensation for survivors. In December 2025, she sent a letter to Governor Newsom and Insurance Commissioner Lara highlighting findings from Eaton Fire Residents United showing elevated levels of lead and asbestos in still-standing homes. The letter urged state leaders to require insurance companies to cover soil testing, conduct repeated remediation until homes are cleared, and extend Additional Living Expense (ALE) coverage for affected residents.

This letter is also signed by Representative Brad Sherman (D-Calif.-32), Speaker Emerita Nancy Pelosi (D-Calif.-11), and Representatives Luz Rivas (D-Calif.-29), Ted Lieu (D-Calif.-36), Lateefah Simon (D-Calif.-12), George Whitesides (D-Calif.-27), Salud Carbajal (D-Calif.-24), John Garamendi (D-Calif.-8), Julia Brownley (D-Calif.-26), Laura Friedman (D-Calif.-30), Ro Khanna (D-Calif.-17), Jared Huffman (D-Calif.-02), Zoe Lofgren (D-Calif.-18) and Josh Harder (D-Calif.-9).

Full text of the letter is availablehereand below:

Dear Mr. Farney, Mr. Vargas, Mr. Wilson, Mr. Eastwood, Mr. Schnitzer, Mr. Tirador, Ms. Roach, Mr. Sweeney, and Mr. Backley,

One year ago, the Eaton and Palisades fires resulted in a terrible loss of life, destroyed thousands ofstructuresand displaced more than 100,000 residents in one of the most devastating natural disasters in California history. Now, a year later, survivors are facing significant challenges navigating insurance claims and receiving the payments their policies entitle them to in the wake of a disaster. Our offices have received multiple concerning reports of survivors being subjected to arduous itemization and receipt requirements, delayed claim processing, multiple adjusters, denials, and estimates that fall far below home values, raising concerns about potential violations of California's Unfair Competition Law. On behalf of our constituents, we are urgently requesting your companies provide information on yourclaimsadjustment process, how you are adhering to California state consumer protection laws, and your efforts to ensure that survivors are treated fairly and receive the payments to which they are entitled.

One year after the fires, 70 percent of survivorsremaindisplaced and Angelenos are still facing significant roadblocks that are preventing them from rebuilding their lives. In addition to the financial and emotional trauma of losing their homes, survivors of the Eaton and Palisades fires are facing mountains of paperwork and unanswered calls to their insurers. We have received outreach from constituents who shared that they havebeen requiredto itemize their material losses and provide receipts corresponding to every item, which can also include requirements of photographic evidence of prior ownership an impossible task even for those who have not lost everything. These arduous requirements raise concerns aboutpossible violationsof the California state Insurance Code, which prohibits insurers from seeking information notreasonably requiredfor or material to the resolution of a claim dispute, and requires that investigations be fair andobjective.

Survivors have also reported being assigned multiple adjusters, which has caused administrative delays, breakdowns in communication, and downward adjustments of their insurance payouts. Theseadditionalhurdles complicate and slow down an already frustrating process for survivors who paid premiums for years with the reasonable expectation that if disaster struck, they could count on their insurer to pay their claims. California courts have found that unreasonable insurance payout delays can violate the implied covenants of good faith and fair dealing, andfailing to adoptand implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies violates the California InsuranceCode.

In addition to being in violation of state law, insurance claim delays and payment denials have forceda majority ofthe Los Angeles wildfire survivors to take on debt and empty their savings. Over half of survivors' net losses exceed their annual income.Moreover, survivors whose claims have not been settled cannot access emergency aid provided by FEMA and the Small Business Administration, as those federalassistanceprograms are contingent on the outcomes of adjudication of insurance claims, creatingadditionalfinancial uncertainty.

Rather than creating more hoops to jump through, insurers must practice transparency and work quickly to ensure wildfire victims are paid what they are owed. On behalf of California policyholders, we are writing to request information on how insurers will reform their practices andexpeditetheir processesin light of the fact thatmany policyholders are still awaiting payouts and facing enormous administrative burdens even a year after the fires began.

Accordingly, we ask that youprovidewritten answers to the following questions no later than February 6, 2026:

How does your companydeterminewhether a policyholder will need to provide a full itemized receipt of their losses?

What level of detail is expected for such itemizations?

What is the rationale for this level of detail?

Is there an appeal or otherwise relevant process they can pursue if they do not have access to a receipt?

Have itemization requirements increased since the outbreak of the Los Angeles wildfires?

How does your companydeterminehow many adjusters are assigned to a claim?

What is the rationale for assigning multiple adjusters to a singular claim?

What type of information tracking and sharing occurs between adjusters when they are brought onto a claim and for the duration?

How do youdeterminethe overall payout amount for a property that has not experienced a total loss?

What recourse do policyholders have when they are presented with estimates far below their home value?

Do you use artificial intelligence in the claims review and settlement process? If so, how? Is there a crosscheck conducted by a claims adjuster?

What steps are you taking to ensure adherence to California's Unfair Competition Law? How do you address accusations ofpossible violationsof this law?

Thank you in advance for your attention to this matter. We look forward to reviewing your responses.

cc:

Commissioner Ricardo Lara, California Department of Insurance

David A. Sampson, President and CEO, American Property Casualty Insurance Association