California officials announced an aggressive effort to combat insurance fraud targeting wildfire survivors in Los Angeles County on Friday, including extended service hours and fraud prevention workshops.
Insurance Commissioner Ricardo Lara and Los Angeles County District Attorney Nathan Hochman unveiled a partnership focusing on consumer protection and swift prosecution of scammers who attempt to exploit disaster victims.
"Scammers exploit vulnerable times, preying on survivors with false promises and fraudulent schemes," Lara said at a joint news conference. "We've seen this in past wildfires."
The Department of Insurance has deployed its Disaster Assistance Response Team (DART) to wildfire-affected areas to protect survivors from scams. The team will work alongside the Contractors State License Board to verify vendor licenses and ensure compliance with state regulations.
Hochman issued a stern warning to potential fraudsters, promising maximum penalties for those who target fire victims. He noted that sentences for wildfire-related crimes can range from three to 25 years in prison. Hochman said his office has spent significant time issuing warnings to potential criminals to inoculate cases against any claim of ignorance.
“I don't want any discussion afterwards that ‘I was confused, that maybe they weren't crimes, and these crimes weren’t going to be punished, and if they were being punished, maybe I would just get a slap on the list.’ The answer is no. Justice will be swift and justice will be significant if you want to take advantage of people in their lowest moment, people who have suffered the tragedy of losing homes, having property destroyed, and are now seeking to recover from that destruction.”
The partnership comes as State Farm, California's largest insurer, announced it would pause all pending non-renewals not just in fire-affected areas but throughout Los Angeles County for one year. The move will impact tens of thousands of policies, according to Lara.
“I do applaud State Farm for answering my call and really setting the tone for other insurance companies to follow during this unprecedented crisis,” he said.
Since 2019, the Department of Insurance has provided over $550 million in funding to district attorneys statewide for fraud investigations and prosecutions, including $116 million to Los Angeles County. The department has recovered more than $474 million for consumers following past wildfire disasters.
Officials cited several recent fraud cases, including a public adjuster sentenced to 10 years in prison for stealing more than $1.2 million in insurance payouts while hiring unlicensed contractors and leaving victims with unrepaired homes.
To help survivors navigate the claims process, the Department of Insurance has extended its service hours to include weekends and evenings. Representatives are now available Monday through Friday from 8 a.m. to 7 p.m., and Saturday and Sunday from 9 a.m. to 1 p.m.
The department is also hosting free insurance support workshops:
- January 18-19 at Santa Monica College
- January 25-26 at Pasadena City College
Survivors can schedule one-on-one appointments with department staff and insurance representatives by calling 800-927-4357.
Lara offered specific guidance for protecting against fraud:
- Document all property damage with photos and videos before cleanup
- Keep receipts for additional living expenses like hotels and meals
- Create a dedicated email folder for insurance communications
- Verify licenses for contractors and adjusters through the department's website
- Be wary of unsolicited offers from contractors
- Report suspicious activity immediately
The commissioner has also expanded a mandatory moratorium on property insurance non-renewals and cancellations to include additional areas affected by the fires, including Palisades, Eaton, Hearst, Lydia, Sunset, and Woodley.
"All eyes are on insurance companies, including ours as a department," Lara said. "Insurance companies must do the right thing during this crisis and stand by consumers, many of whom have been with them for years."
Hochman's office has already begun prosecuting wildfire-related crimes. This week, authorities announced charges against 18 individuals for various offenses, including looting, arson, and impersonating a firefighter.
"For the criminals who think they can take advantage of the system for their own benefit, for their despicable desires to profit from this tragedy, you are seeing a unified front that is going to come after you," Hochman said.
The district attorney identified two common fraud schemes: individuals posing as insurance agents or brokers to deceive victims, and people filing false claims for damages they never suffered.
Out-of-state adjusters coming to California to handle the surge in claims must be verified through the department and understand the state's unique consumer protections, Lara emphasized.
"My goal is very simple: to make insurance fair, accurate and available for all Californians," he said.
The Department of Insurance urges survivors to visit insurance.ca.gov or call 800-927-4357 for assistance with claims, contractor verification, or to report suspected fraud.
