Compensation for Underinsured Palisades Fire Victims

Underinsured Homeowners and Victims Whose Insurance Policies Were Dropped Could Receive Compensation

Palisades Fire victims and other California residents who have had their home insurance cancelled or non-renewed, or have faced under-insurance or had valid claims denied in bad faith by their insurance company, may be eligible to file a claim for compensation. Losing your home to a wildfire is a truly devastating experience, and for many this ordeal has been made so much worse by the arbitrary and illegal drops of coverage and systemic under-insurance practiced by home insurers in California. Contact Singleton Schreiber today to learn more about how we can help you recover.

Common Fire Damage Losses

Wildfires in California can inflict serious losses and insurance companies should be helping victims recover instead of nickel-and-diming them over valid claims. While the Palisades Fire grabbed headlines early this year, there have been more than 8,000 wildfires in California alone in 2024, according to CalFire. These fires burned over one million acres and destroyed more than 2,000 structures. Common losses include:

• Structural damage
• Loss of personal property
• Burn injuries
• Bodily injuries
• Roof damage
• Water damage
• Electrical damage
• Smoke damage
• Loss of landscaping and trees
• Homelessness
• Cost of evacuation and temporary relocation
• And more

Bad-Faith Home Insurance Practices

Insurers are supposed to help victims obtain compensation for the damages listed above. However, many insurers have engaged in bad faith practices like attempting to diminish or simply flat out denying valid fire damage claims.

Before the Palisades Fire, as well as the other recent fires in the LA area such as the Hurst and Eaton Fires, many insurers dropped coverage to customers in the areas the where the fires occurred just months beforehand, and many of these  drops were arbitrary, discriminatory, or based on false evidence, such as aerial photographs claiming to show damage to a home when none is present. Now, Singleton Schreiber has filed a class action lawsuit against Liberty Mutual for using “demonstrably false” photos as evidence to drop coverage to Southern California homeowners.

If you’ve been affected by the Palisades Fire in Los Angeles, have had your insurance cancelled or non-renewed, or have had a valid claim denied in bad faith, you may be entitled to compensation. Singleton Schreiber has the resources to handle your case the right way, every time. Your justice is our top priority. Contact us for a free, no-obligation case evaluation today. 

Client-Centered Justice

How We Can Help

At Singleton Schreiber, our clients are at the center of every decision we make. Our experienced team understands how overwhelming the aftermath of a fire can be, which is why we handle each case with care. Individuals and businesses face exceptional challenges, and we are determined to fight tirelessly to protect their rights and secure the outcomes they deserve.

Our attorneys stand by fire victims, offering comprehensive assistance:

• Pursuing legal action against entities responsible for the fire
• Navigating FEMA and government claims
• Ensuring receipt of maximum owed insurance benefits
• Pay no fees unless we win

Background 

Many Homeowners in Palisades, Hurst, and Eaton Fires Were Underinsured

According to CBS News, about 75% of the victims of the 2021 Marshall Fire in Colorado were underinsured. That disaster cost around $2 billion, and the cost to rebuild for victims of the recent LA wildfires will be much higher.

Nationally, around 12% of homeowners have no homeowners insurance at all. For many of those that do, their policies are only large enough to cover a fraction of the cost that it would take to completely rebuild after a natural disaster.

According to Pasadena Now, insurance experts estimate around 10-15% of homes are underinsured, meaning they have “policies with coverage limits that are too low to fully cover the cost of rebuilding their home in the event of a major damage event,” such as the Hurst, Eaton, and Palisades Fire.

According to Lending Tree, about 10% of California homeowners (more than 800,000 people) are underinsured on their homeowners insurance policies.

Homeowners insurance is not legally required in the State of California, though many lenders require homeowners to have it for the life of their mortgages.

Adding to the issue, major lenders like State Farm, Allstate, and Farmers are dramatically reducing coverage in the state, and raising rates on many policies by more than 30%, as the state grapples with an insurance crisis.

Why Insurance Companies Are Cancelling or Non-Renewing Insurance Policies

As private insurers have dropped California policies in recent years, homeowners have been forced to seek coverage from the California Fair Access to Insurance Requirements Plan, also known as the FAIR plan, or to forgo insurance coverage altogether. The FAIR plan is a “last resort” for homeowners, which provides only very basic fire insurance coverage.

In light of the recent Los Angeles and Ventura County wildfires, the California Department of Insurance has placed a one-year moratorium on non-renewals. This means that the Department of Insurance will partner with CalFire and the Governor’s Office of Emergency Services to identify wildfire perimeters and nearby zip codes, protecting those policyholders who live in those areas from losing their coverage for one year from the date of the Governor’s emergency declaration. 

Singleton Schreiber lawyer Michelle Meyers, who is heading up the class action against Liberty Mutual, has spoken of the significant financial shortfall homeowners are left with when they are forced to rely on alternative plans like the FAIR Plan.

"There’s going to be a drastic shortfall of what is covered to rebuild, and in part because you had these non-renewals that we think were premised on inappropriate reasoning to begin with," she said.

Our fire attorneys intend to seek legal recourse where necessary so that victims of unlawful insurance practices can obtain fair and full compensation and move forward with their lives.

Our Team

Holding the Harmful Accountable

With approximately 300 staff members and over 75 attorneys, Singleton Schreiber has offices in California, Alabama, Colorado, Hawaii, Mississippi, New Mexico, Oregon, Texas, Utah, and Washington. Singleton Schreiber has represented more than 13,000 victims of utility fires and has recovered over $3 billion in settlements and verdicts for its clients in the last 10 years alone.

Our firm’s attorneys work hand-in-hand with homeowners, renters, businesses, and municipalities in dealing with government claims, insurance claims, utility-related lawsuits, and more. We fight for regular people and put our clients first. What justice means to you is what matters most. Simply put, you are what matters. Our client-focused attorneys will make your justice our top priority.

Get the care and compensation you deserve today. Call our team or fill out the contact form to book your FREE consultation with our fire experts today.

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