NEWS: Sen. Schiff, Rep. Chu Lead California Delegation Members in Calling on Major Insurance Companies to Ensure Los Angeles Fire Victims Receive Fair Compensation

Washington, D.C. - U.S. Senator Adam Schiff (D-Calif.) and U.S. Representative Judy Chu (D-Calif-28) led 14 members of the California congressional delegation in urging nine of the largest insurance companies in the state to provide answers on the hurdles they're making Los Angeles fire survivors jump over when seeking fair compensation and benefits.

This follows multiple concerning reports from constituents about ongoing challenges they're facing with insurers, including arduous itemization requirements and delayed claim processing and payouts that fall far below home values, raising 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.

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 available here and 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 of structures and 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 your claims adjustment 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 survivors remain displaced 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 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. These arduous requirements raise concerns about possible violations of the California state Insurance Code, which prohibits insurers from seeking information not reasonably required for or material to the resolution of a claim dispute, and requires that investigations be fair and objective.

Survivors have also reported being assigned multiple adjusters, which has caused administrative delays, breakdowns in communication, and downward adjustments of their insurance payouts. These additional hurdles 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, and failing to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies violates the California Insurance Code.

In addition to being in violation of state law, insurance claim delays and payment denials have forced a majority of the 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 federal assistance programs are contingent on the outcomes of adjudication of insurance claims, creating additional financial 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 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.

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

1. How does your company determine whether a policyholder will need to provide a full itemized receipt of their losses?
2. What level of detail is expected for such itemizations?
3. What is the rationale for this level of detail?
4. Is there an appeal or otherwise relevant process they can pursue if they do not have access to a receipt?
5. Have itemization requirements increased since the outbreak of the Los Angeles wildfires?
6. How does your company determine how many adjusters are assigned to a claim?
7. What is the rationale for assigning multiple adjusters to a singular claim?
8. What type of information tracking and sharing occurs between adjusters when they are brought onto a claim and for the duration?
9. How do you determine the overall payout amount for a property that has not experienced a total loss?
10. What recourse do policyholders have when they are presented with estimates far below their home value?
11. Do you use artificial intelligence in the claims review and settlement process? If so, how? Is there a crosscheck conducted by a claims adjuster?
12. What steps are you taking to ensure adherence to California's Unfair Competition Law? How do you address accusations of possible violations of 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

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