Some Los Angeles wildfire survivors say their homes are still standing, but smoke damage and insurance disputes are keeping them from moving back nearly a year and a half after the Eaton and Palisades fires.
ABC7 reported that Pacific Palisades homeowner Elissa Ashwood has not been able to return to her Lachman Lane home, one of the few houses left standing on her street after the Palisades Fire. Ashwood is disputing the California FAIR Plan’s handling of her smoke-damage claim after a claims examiner said the main dwelling appeared habitable.
A separate assessment commissioned by Ashwood concluded the home had significant thermal, non-thermal, and chemical contamination damage tied to the fire. Ashwood told ABC7 she believes the house needs more extensive remediation, but has not convinced the FAIR Plan to pay for that level of work.
Across wildfire-prone states, an intact exterior does not settle whether a home is safe to live in. Soot, ash, smoke odor, fire debris, and possible contamination can remain in contents, HVAC systems, attics, wall cavities, insulation, and other hidden areas after flames pass nearby.
Another Homeowner Has Sued State Farm
In Pasadena, near the Eaton Fire burn scar, homeowner Frank Lombardi has sued State Farm over what his filing calls wrongful denial and underpayment of smoke-damage claims.
ABC7 reported that State Farm generally denies the allegations in court filings. The company told the station it reviews each claim based on policy terms and the facts of the loss and works to provide all available benefits.
Lombardi told ABC7 his family does not want to take chances with their three children and believes the policy should cover complete remediation.
State Regulators Are Reviewing Smoke Claims
The California Department of Insurance has taken legal action against State Farm, saying an expedited investigation found widespread claim-handling problems after the 2025 Los Angeles fires, including delays, underpayments, smoke-damage disputes, and inadequate communication.
The department said smoke-damage claims represented nearly half of all consumer complaints in its State Farm review. Regulators also said insurers must fully investigate smoke-damage claims and cannot deny them without an appropriate investigation.
Smoke Damage Needs a Strong Paper Trail
The California Department of Insurance advises wildfire claimants to get a complete copy of their homeowners policy, track additional living expenses, document conversations with insurers in a dedicated claim diary, and ask adjusters to identify the policy language behind any exclusion or limitation.
Homeowners disputing smoke damage should request written inspection findings, testing decisions, remediation scopes, payment explanations, and any denial or partial-payment reasoning. Photos, receipts, estimates, lab reports, contractor notes, emails, and call logs can help show why a house that still stands may still need cleanup before a family returns.