Facing dwindling — or already dried up — insurance payouts and increasingly expensive rebuilding projections, Los Angeles County fire survivors are heading toward their most urgent and existential financial crisis yet in their recovery, according to a survey conducted 15 months after the January 2025 firestorm.
report Released on Thursday by department of angelsThe Eaton Fire, a fire recovery nonprofit launched after much of Altadena and Pacific Palisades was destroyed in the Palisades fire, marks the organization’s fifth quarterly survey of nearly 2,100 fire survivors.
It noted some marginal progress in overall recovery, but also found “large and growing differences between the recovery paths of different survivors”, particularly when respondents’ income levels and race and ethnicity are taken into account.
The report found that the highest percentage ever of fire survivors – nearly 40% – reported that their temporary housing insurance payments had either ended or were expected to soon, indicating “the imminent end of coverage for many more survivors before they are able to return home.”
About 40% of respondents said they would only be able to afford temporary housing for a few months without those insurance payments.
And the findings were even more stark for low-income households: Among those earning $50,000 or less, nearly 80% said they didn’t think they could afford housing for three months after coverage ended.
“Long-term finances are the most urgent issue for survivors, even though they face other serious challenges,” the report found. About 2 out of 3 people who survived the fire are still displaced.
In addition to temporary housing costs and concerns, 1 in 5 reported significant financial difficulties as a result of the fire, while 1 in 10 said they were forced to cut back on food or fell behind on rent, mortgage or utility payments.
The report said nearly half of all survivors had depleted a significant portion of their savings, and nearly 4 in 10 said they had taken out loans.
The report found, “Some of the most severe financial impacts are being disproportionately experienced by people of color: 22% of Latinos and 18% of African Americans have cut back on food, compared with 7% of white survivors.” “Latinos and African Americans are more likely to fall behind on rent/or mortgage, fall behind on utility bills, miss work or school, rely on food assistance, and experience homelessness.”
In addition to families’ immediate needs, the lack of insurance is also bringing concerns to residents hoping to rebuild.
Construction of a new home is underway in Pacific Palisades on February 27, 2026.
(Caroline Brehman/For The Times)
“Homeowners estimate that to rebuild their homes, they will need an average of $600,000 more than what insurance provides,” the report found. Total loss homeowners in Altadena estimate they will still be short about $550,000 after insurance payouts, while in Pacific Palisades and Malibu, residents estimate the gap will be around $1.19 million and $1.73 million, respectively.
Less than half of homeowners with major damage said they would rebuild no matter what. About a quarter said they would like to rebuild but it depended on “financing or a way to make it affordable”.
“I don’t think anyone has enough insurance money,” said Isabella Mendoza, an Altadena fire survivor who has volunteered with several fire prevention groups. Recently, he has worked with Altadena Land InitiativeA non-profit organization that works to provide interest-free loans to fire survivors. He said the group has been flooded with requests for help, but as the true cost of rebuilding becomes clear, the group realizes it can only help so many people.
“It’s hard to decide that you want to come home and finance everything, then realizing it’s not financially possible,” Mendoza said. She said the tiredness she sees on people’s faces has become normal.
“Sometimes you need a break, but you don’t get a break from recovery.”
And there’s a similar gap for renters: On average, these residents estimated they would need about $250,000 in addition to insurance payments to pay for lost belongings and temporary housing.
Nevertheless, the report found that most fire survivors were optimistic or confident that they would recover, although this confidence is strongly associated with income. Higher-income groups were likely to feel more confident about recovery, while lower-income fire victims expressed the most uncertainty.
And although most survivors of the fire are displaced into temporary housing, the report found that there has been some improvement in the standing, but damaged homes for survivors. By April only 40% of those residents remained displaced, down from about 55% in December.
Survivors also saw progress in soil testing, with about half of total damaged households reporting they had completed soil testing, up from about a third in December. (Although, it’s worth noting, several new tests came back positive for dangerous contaminants.)
Construction along Laurel Drive in Altadena on April 30, 2026.
(Eric Thayer/Los Angeles Times)
Despite the ongoing and complex challenges, Angels department leaders said they hope the report’s findings can serve as a “practical tool to align efforts, direct resources, and ensure that recovery remains within reach for every family.”
“This is a delicate moment for survivors,” Department of Angels co-founders Evan Spiegel and Miguel Santana wrote in the report. “As the gap in household budgets widens, confidence is wavering, raising important questions about who will recover and under what circumstances. …Decisions made in this moment will shape the pace and outcomes of the recovery.”
