Homeowners accuse insurers of underpaying smoke damage claims 18 months after Eaton, Palisades fires
Smoke from the Boyle Heights warehouse fire served as a reminder this past week of how harmful fire smoke can be in Southern California. For some homeowners in the Eaton and Palisades Fire burn zones, smoke damage is still keeping them out of their houses more than a year and a half after the fires.
"Christmas 2024 was a different life, and it's unbelievable that we haven't been able to get this home all the way repaired so that we can have 2026 Christmas in this home," homeowner Elissa Ashwood said.
In the Pacific Palisades, Ashwood says her family has been unable to return to their Lachman Lane home, named after her grandfather, Benjamin Lachman. The house was one of the few left standing on the street after the Palisades Fire.
"We could tell that it was much worse than any fire that we've been through before, because we've had multiple fires," Ashwood said.
Ashwood has been locked in a lengthy dispute with her insurer, the California FAIR Plan. A claims examiner told her, "The main dwelling appears habitable." But an assessment she commissioned concluded, "There was significant thermal, non-thermal and chemical contamination damage caused by the Palisades Fire that directly impacted this residence."
SEE ALSO: Fire victims suing California FAIR plan; claim smoke damage isn't being covered
Ashwood believes the home needs to be taken down to the studs, but she says, as of now, she has not convinced the FAIR Plan to pay for it.
"We are trying everything that we can to avoid litigation. We shouldn't have to sue our insurance company," she said.
In Pasadena, near the Eaton Fire burn scar, homeowner Frank Lombardi has already filed suit against State Farm, alleging "wrongful denial and underpayment of smoke damage claims." Court filings show State Farm "generally denies each and every allegation" in the lawsuit.
RELATED: Palisades and Eaton Fire victims going after State Farm for how insurance company handled claims
"We have three children, so there's no way that we want to take any chances," Lombardi said. "What we think that we should get through our policy is a complete remediation. And what that means is going to the studs."
Inside Lombardi's home, cobwebs have formed in rooms left frozen in time since Jan. 7, 2025, when the family was putting away Christmas decorations. Toys and holiday items remain where they were left as the insurance dispute continues.
State Farm said it "reviews every claim based on the policy terms and the facts of the loss. We work closely with our customers to provide all benefits available under the policy."
SEE ALSO: CA says State Farm violated the law in handling of insurance claims after Eaton, Palisades fires
After speaking with Ashwood, ABC7 reached out to the FAIR Plan, which said it "evaluates every claim on its own merits and pays all covered claims up to the individual policy limits. This includes claims for smoke damage."
Attorney Dylan Schaffer, who is leading cases against both insurers, said the companies are more likely to dispute claims involving homes that appear intact from the outside.
"They cannot ignore houses that are burned down to the ground. They can't ignore those. So the ones that they try to save money on are the neighbor whose house looks fine, but is not fine," Schaffer said.
The California Department of Insurance has taken legal action against both State Farm and the FAIR Plan, accusing them of not fully paying out claims. Next month, the state's case accusing the FAIR Plan of illegally denying smoke claims is scheduled to go before an administrative judge.
RELATED: 97-year-old Palisades Fire victim may sue California FAIR plan for barely covering remediation costs
