FAQ: Legal and Insurance Guidance for Pacific Palisades Wildfire Claims

On June 9, 2025, we held two townhalls for our community impacted by the Pacific Palisades wildfire to come and ask questions for our attorneys. Here are some commonly asked questions from these sessions if you missed them:

Q1: What types of legal claims are available for Palisades wildfire victims?

A: Victims may pursue two types of claims:

• First-party insurance claims: Filed against your own insurance company for property damage, contamination, and related losses.
• Third-party governmental claims: Filed against public entities like the State of California, County and City of Los Angeles, LADWP, and Sanitation Districts under theories like inverse condemnation.

Q2: What is the process for government claims?

A: After filing, the governmental agencies have 45 days to respond. After their response or denial, victims have six months to file lawsuits. The team has already filed many of these government claims and has related cases consolidated with lead litigation.

Q3: What challenges are policyholders facing with insurance companies?

A: Many are experiencing significant delays and partial payments despite clear total losses. Insurers may withhold full payouts, requiring aggressive legal advocacy to secure rightful compensation.

Q4: What role does environmental contamination play in claims?

A: Environmental contamination is often a major component. Many properties have tested positive for:

• Lead contamination
• Asbestos
• Heavy metals
• VOCs (volatile organic compounds)
• Smoke, ash, and soot infiltration

Q5: Why is expert testing so important?

A: Independent environmental experts can uncover contamination not identified by insurance company experts. California courts recognize that contamination may not be visible but still constitutes physical damage if hazardous substances have infiltrated building materials, requiring remediation. These findings can greatly influence the scope and value of claims. Certified hygienists and environmental specialists can document this through:

• Air testing
• Tape lift testing
• Swab testing
• Laboratory analysis
• Protocols for decontamination

Q6: Why is documentation of property damage so critical?

A: Detailed documentation helps support both insurance and third-party claims. This includes photographs, environmental testing reports, content inventories, and expert assessments of contamination. Thorough documentation strengthens claims and preserves evidence for potential litigation.

Q7: Does the policy require proving permanent physical damage? A: Not necessarily.
California law recognizes that even contamination requiring active remediation can trigger coverage. Both physical alteration and contamination rendering the property unfit to live in may qualify as "direct physical loss." Insurers may attempt to improperly limit coverage, but the law offers broader protections under Insurance Code §2071.

Q8: What is the role of public adjusters vs. attorneys?
A: Public adjusters can assist with the adjustment of claims but often lack legal expertise. Attorneys can pursue legal remedies when claims are underpaid, denied, or involve broker negligence. Many complex claims may require a combination of both to achieve full recovery.

Q9: What is broker negligence, and how does it impact claims?

A: Broker negligence occurs when insurance agents or brokers fail to procure adequate coverage, fail to renew policies, or make errors that leave properties underinsured or uninsured. Legal action may be taken against brokers who contributed to insufficient coverage.

Q10: What should I do now if I haven’t filed?

A: Contact legal counsel immediately. Filing deadlines are approaching, and the process of expert inspections and claim preparation takes time. Legal counsel provides expertise in interpreting complex policy language, preserving evidence, navigating government claims, coordinating expert evaluations, litigating disputes, and maximizing total recovery. Early legal intervention maximizes your recovery and ensures compliance with critical deadlines. ACTS Law offers comprehensive, end-to-end services by:

• Handling first-party insurance claims with decades of expertise.
• Advancing costs to retain top experts.
• Filing and litigating third-party governmental claims.
• Maintaining client status updates throughout ongoing litigation.

This blog post is provided for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and ACTS Law or any of its attorneys. Legal outcomes depend on the specific facts and circumstances of each case, and you should not act or rely on any information in this blog without seeking the advice of a qualified attorney. If you need legal assistance, please contact our office directly to schedule a consultation.