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3d ago

Insured Eaton Fire Claims Could Exhaust California’s $21 Billion Wildfire Fund

Documents show Eaton fire losses could deplete the fund, prompting a council review of fee limits alongside claim-prioritization safeguards.

Sam Holtzman and his son Eibu, 9, residents of northwest Altadena, whose house still stands but remains inaccessible due to Eaton Fire contamination in January, look at a map of Altadena fire damage created by Noel McCarthy, a stylized update of Los Angeles County's Eaton Fire damage map, Wednesday, July 9, 2025, in Altadena, Calif. (AP Photo/Chris Pizzello)
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Overview

  • State documents estimate insured losses from the Jan. 7 Eaton wildfire at up to $15.2 billion against a $21 billion cap on the wildfire fund.
  • The California Catastrophe Response Council is considering new fee limits and rules to prioritize homeowner and renter claims to extend the fund’s solvency.
  • Southern California Edison will launch a voluntary Wildfire Recovery Compensation Program this fall to expedite payments for homes, businesses, renters and injury claims.
  • Edison has not admitted fault as investigators continue probing whether its transmission equipment sparked the Altadena blaze.
  • Wall Street hedge funds buying subrogation claims and attorney fees of up to 50 percent of settlements are heightening concerns over accelerated fund depletion.