Tuesday, August 26, 2025

Harabedian Presses for Insurance Reform to Aid Local Wildfire Survivors

The Assemblymember joined survivors and officials in Altadena to demand action from the California Department of Insurance

Assemblymember John Harabedian (D–Pasadena) joined wildfire survivors and local officials Monday to demand urgent reforms from the California Department of Insurance, citing widespread delays and denials of claims stemming from the Eaton Fire and other recent disasters affecting residents in Altadena, Pasadena and surrounding communities.

Speaking at a press conference held in Altadena alongside the Eaton Fire Survivors Network, Harabedian called on the California Department of Insurance to enforce existing laws, expedite claims, and increase transparency in insurance practices. He also spotlighted Assembly Bill 238, legislation he authored to allow disaster-impacted homeowners to pause mortgage payments for up to one year.

“Our responsibility is clear: to protect survivors, give them the time and resources to rebuild their home and their lives, and ensure they can do so with security and peace of mind. That’s why I am leading this effort — calling on the California Department of Insurance to act swiftly and decisively, enforce the law, expedite claims, and provide every protection available — so families can recover with dignity and hope for the future,” Harabedian said.

The proposed reforms include:

• Expediting the State Farm Market Conduct Exam

• Guaranteeing smoke damage coverage under the FAIR Plan

• Enforcing housing protections under California law

• Requiring transparency in loss estimates

• Making the California Department of Insurance’s complaint process more accessible

Joy Chen, co-founder and CEO of the Eaton Fire Survivors Network, said insurers are using “illegal delays and denials to profit from our pain,” leaving families in contaminated homes and financial distress.

“We paid our premiums faithfully for decades, trusting insurers to protect us. Now they’re using illegal delays and denials to profit from our pain. Families are maxing out credit cards, draining savings, and living in contaminated homes. We call on the California Department of Insurance to stand with survivors, not with the insurers breaking the law,” Chen said.

Senator Sasha Renée Pérez echoed the call for accountability, urging the California Department of Insurance to investigate hundreds of complaints filed by Eaton Fire victims.

“For months, I have been leading the call to launch an investigation into the hundreds of insurance complaints by Eaton Fire victims. These residents should not be pushed aside during their greatest time of need. Insurance companies should not be allowed to raise rates before we get answers into how they are treating their policyholders following this disaster,” Pérez said.

Assemblymember Jacqui Irwin drew attention to the importance of AB 238 and AB 493, which require banks to pay interest on insurance payouts.

“The Eaton and Palisades fires have caused devastation in the lives of hundreds of California families. While we cannot undo what nature has done, we can attempt to ease the pain of those suffering from nature’s wrath. AB 238 minimizes the financial impact through temporary mortgage relief and AB 493 assures victims that banks are required to pay interest on money deposited as a result of insurance payouts. In addition to these legislative efforts, we need the California Department of Insurance to step up and enforce the law to protect victims from further harm caused by insurers. Those of us representing fire-impacted communities are committed and will continue to address these issues as they arise. Thank you, Assemblymember Harabedian, for being a voice for these victims when they need it most,” Irwin said.

Los Angeles County Supervisor Kathryn Barger said the Eaton Fire exposed systemic issues in the insurance market.

“The Eaton Fire devastated residents in my district and exposed glaring issues in the insurance market. Too many continue to face undue claims delays, underpayments, and denials that compound their hardship and loss. Continued vigilance in oversight and enforcement are vital, and new reforms are needed from our state regulators and legislature. I applaud Assemblymember Harabedian’s leadership and partnership to pass critical legislation on this important issue,” Barger said.

Altadena Town Council Chair Victoria Knapp added:

“Behind every delayed insurance claim is a family forced to wait in limbo. Survivors of the Eaton Fire deserve to be treated as people, not numbers. We’re asking the California Department of Insurance to stand with Altadena and not with insurers to deliver justice for those who’ve already lost so much,” Knapp said.