For release:
January 28, 2025  

C.A.R. offers tips on navigating financial assistance, insurance and potential safeguards after the wildfires

LOS ANGELES (Jan. 28) – Navigating the many challenges following a wildfire involves understanding both the insurance payment process and potential legal protections to avoid falling victim to scams or other predatory actions. The CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) is sharing information for its REALTOR® members to help those impacted by wildfires understand what to expect and common pitfalls to watch out for in the critical weeks ahead. 

“California REALTORS® are actively contributing to relief efforts for those affected by the fires in Southern California,” said C.A.R. President Heather Ozur. “We’re committed to supporting displaced homeowners and renters by providing crucial guidance and information to help protect them from illegal price inflation, scams, and ensure they receive fair compensation from their insurance companies for any damages. Alongside insurance agents and attorneys, REALTORS® can also serve as a valuable resource, connecting vulnerable consumers with the right services to navigate the relief or rebuilding process effectively.”

Immediate Financial Assistance
Individuals and families affected by the wildfires are eligible for federal assistance through the Federal Emergency Management Agency (FEMA). Apply for disaster assistance at DisasterAssistance.gov, through the FEMA mobile app or by calling the FEMA Helpline at 800-621-3362. Those who have insurance should look into filing a claim with your insurance company immediately. FEMA assistance cannot help with losses already covered by insurance. 

After applying for assistance, your request is reviewed to determine if an inspection is needed to verify disaster-related damage to your home and personal property. FEMA staff and inspectors may contact you to discuss your disaster-caused damages. FEMA may also request more information to support your eligibility for assistance or information related to your specific disaster-related needs identified in your application. If so, you will receive a letter from FEMA outlining the information needed.

FEMA also provides transitional sheltering assistance for short-term, emergency sheltering options at participating hotels.

The insurance payments process
The following is a general overview of the insurance payments process. Typically, to receive insurance payments after wildfires, the process typically would start by filing a claim and submitting proof of loss to your insurance company. A claims adjuster then would visit the property to conduct a preliminary evaluation, known as the “scope of loss.” After this, a finished estimate would be prepared. Be cautious of insurance companies offering an on-the-spot settlement, especially full-settlement offers. Typically, you can receive separate payments for personal property, real property, and additional living expenses. The first check you receive is usually an advance.

If your home is mortgaged, be aware the check for home repairs will generally be made out to the mortgage lender, as lenders often require being named in the homeowner’s policy and are a party to any insurance payments related to the structure.

For further information on how the insurance process works, the California Dept. of Insurance has posted the “Residential Property Claims Guide,” along with other information on their website.

Protection from rental price gouging
In the aftermath of the wildfires, it's important to be aware of anti-price gouging laws to protect yourself from illegal and unfair rental prices. In California, following the declaration of an emergency, rental prices for housing cannot be increased by more than 10 percent. This rule is presently in effect for affected counties until March 8, 2025, but can be extended. The rent cap applies to both existing tenancies and new rentals. Violating this rule can result in criminal prosecution, with penalties including up to one year in jail and a $10,000 fine. Civil liability can include penalties of up to $2,500 per violation and mandatory restitution. Be aware the baseline rental price varies based on multiple criteria, which may include the latest rental price, the time period when the house was most recently rented or offered for rent, and the fair market rent established by the U.S. Dept. of Housing and Urban Development.

Opportunistic real estate speculators
Gov. Gavin Newsom has issued an Executive Order to protect residents in fire-ravaged zip codes in Los Angeles County. The Order targets opportunistic real estate speculators who make unsolicited cash offers well below market value in attempts to exploit victims of the Southern California fires. The order makes such offers unlawful through January 7, 2026. California law makes it a misdemeanor to violate a governor’s order during a state of emergency. Violations can be reported to the State Attorney General’s office at oag.ca.gov/report. See this notice from the California Dept. of Real Estate describing this illegal activity.

About the CALIFORNIA ASSOCIATION OF REALTORS®
Leading the way…® in California real estate for nearly 120 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Sacramento.

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