, /PRNewswire/ -- After a court ruling last week that the California FAIR Plan illegally limits payouts for smoke damage claims, Consumer Watchdog released a new guide outlining 10 practical tips for getting smoke claims paid from those who know best: fire survivors.

"As thousands of policyholders navigate the home insurance claims process in California following the Eaton and Pacific Palisades fires, many are finding out that the damage wrought on their still standing homes by smoke and heat isn't being paid for," said Justin Kloczko of Consumer Watchdog, a California-based nonprofit. "This guide is policyholder advice straight from wildfire survivors going through it right now. They outline what's worked for them, and what to avoid."

Read the tip guide, "Lowballed: What Fire Survivors Want You To Know About Insurance Claims," here.

As of June 2025, of 165 standing homes that have been tested so far for lead following the Eaton Fire, all of them showed elevated levels that required professional remediation, according to data provided by the Eaton Fire Residents United, a volunteer-led coalition of residents.

Another resident-led organization, the Eaton Fire Survivors Network, submitted hundreds of testimonials to the insurance commissioner describing State Farm's failure to meet its claims obligations to policyholders after the fires. Of the 51 smoke damage testimonials included, every single one cites problems with the company refusing or underpaying claims for testing and remediation.

And a recent New York Times survey of over 500 Eaton and Pacific Palisades fire survivors found "a majority of those whose homes were still standing reported that their insurance companies had declined to pay for testing." 

Here are the tips for getting smoke damage claims paid:

1.     Don't Rush. Test for Toxins Before Cleaning.

"If I had just taken that $26,000 check and called it a day, I'd probably be back in my house, but I wouldn't know of the dangers that are still in that house." 

- Wendy Davis, State Farm policyholder, who independently tested her home and found asbestos after testing wasn't initially paid for by her insurance company. 

2.     Know What Tests Miss

Tests often fail to detect toxic residue left by solar panels, computer devices, and lithium batteries, which pose health risks.

"That's showing up in almost every single home because of all the same batteries that we have." 

- Dawn Bolstad-Johnson, industrial hygienist

3.     Walk the Loss with the Insurance Adjuster

When adjusters come to inspect damage on behalf of an insurance provider, it's important to walk along side them to make sure they spot everything.

"Getting the right adjuster seems to be the key." 

- Denise Sze, public adjuster, who often highlights damage that insurance adjusters avoid or miss. 

4.     Smoke Damage is Fire Damage

"The truth is that what you're really talking about is not smoke. You're talking about what's left after smoke is gone, and that's chemicals and contamination." 

- Attorney Dylan Schaffer on how insurance providers have sought to separate smoke damage from fire damage. 

5.     Push Back on Cosmetic Insurance Fixes

Beware of insurance companies offering air filters and deodorizers as a temporary solution to your smoke damaged home.

"What Servpro was recommending will not make your house safe."

- Kelsey Szamet, State Farm policyholder 

"Deodorizers, which mask toxic odors, are like, "just putting a fig leaf over the problem—it's not addressing the underlying problem." 

- Dr. Gina Solomon, Environmental health specialist

6.     Know Your Policy

The California Department of Insurance offers a free insurance policy locator in case you need to find it. 

7.     Make a Record!

"You have to document every email, every phone call because they are not documenting it."

- Kelsey Szamet, State Farm policyholder

8.     Persistence Pays Off

"It's perseverance. It's persistence."

- Wendy Davis, State FarmPolicyholder, who got over $150,000 in remediation, contents replacement, housing and living expenses covered after initially being offered $26,000.

9.    Know Your Legal Rights

Act in Good Faith: Insurers must give your interests as much consideration as their own. That means no lowballing, stalling or denying claims without adequate justification. 

Fair and Thorough Investigations: They must investigate all aspects of your claim, not just those that benefit the insurer. All fire damage, including that from smoke and ash, must be considered. 

Full Disclosure of Your Rights: You're entitled to clear communication about your policy and your rights as a policyholder via written documentation.

10.  Take Collective Action

"Number one, stay plugged into the network and make sure you're talking to your friends and neighbors, and make sure you understand what to expect." 

- Tim McCune, FAIR Plan policyholder 

"Insurance companies depend on us being isolated," said Joy Chen, head of the Eaton Fire Survivors Network. "They count on survivors feeling overwhelmed and giving up before they can fight back. But by educating ourselves, standing together, and taking collective action, we can hold insurers and regulators accountable to the laws that are supposed to protect us."

Last decade, almost 40 percent of claims related to California wildfires were underpaid, according to a 2023 study by the Federal Reserve Bank of Philadelphia. The authors estimate homeowners received on average $200,000 to $300,000 less than what they're legally due. 

California law requires insurance companies to offer fire coverage equal or better to that of the state's standard policy, which does not exclude smoke or "nonpermanent damage," said Consumer Watchdog. California law also states that insurers pay property owners for "all loss by fire." And court decisions in California and other states have determined that smoke damage is an inseparable aspect of fire damage, said the nonprofit.

Those looking to get involved can visit the Eaton Fire Survivors Network website to join survivors and hold insurers accountable.

SOURCE Consumer Watchdog