The January 7 Palisades Fire around 1 p.m.
Prior to going to Sacramento to speak with lawmakers about insurance, resident Martin Hak suggested that the 11-member delegation, which was accompanied by L.A. Mayor Karen Bass and Councilmember Traci Park, have data to support conversations.
The survey, which was done the week before the February 9 trip, was conducted independently and self-funded, with pro bono design guidance from Pacific Marketing Research, a Palisades resident–owned global market research firm.
More than 520 residents participated, and the findings pointed to a clear theme: for many homeowners, the primary barrier to rebuilding is insurance claim friction, not permitting or federal aid.
Hak shared the key highlights with Circling the News:
- About 40% of homeowners say their insurance claim is still unresolved.
- A similar number report being in scope or estimate dispute with their insurer.
- Many homeowners report being underinsured, with significant coverage gaps affecting rebuild feasibility.
“Two specific friction points stand out,” Hak said. “Contents itemization and Additional Living Expense (ALE).”
Those who had lost their homes described the requirement to itemize and value decades of acquired belongings as “time-consuming, emotionally difficult, and often subject to dispute,” Hak said.
He added that the survey showed that delays in contents settlement were slowing overall claim resolution for some families.
After the fire, most Palisades residents were initially displaced, and a year later, there were still nearly 70% of homeowners who had not moved back into the Palisades according to the survey.
The survey participants reported uncertainty around ALE timelines and concerns about coverage ending before rebuilding is possible.
“The interaction between ALE limits, claim disputes, and lender controls is creating financial strain,” Hak said and added that “Some respondents also report insurance proceeds being held in lender-controlled escrow, delaying access to funds even after payment is issued.”
The 11-member delegation to Sacramento were able to present data that suggested that most homeowners intended to rebuild, but the pace of recovery is closely tied to how efficiently insurance claims are resolved and when funds are made usable.
(Editor’s note: About the survey – this was a self-selected sample and not meant to be projectable. It is also not designed to represent household level answers, since multiple people from a given household could respond.)