State Farm Additional Living Expense Claims For Eaton And Palisades Wildfire Victims

If you are a Los Angeles County resident impacted by the January 2025 Eaton and Palisades wildfires, you may be living through what feels like a real-life horror movie. Not only did you need to escape the blaze, now you must determine where you will live until you can repair or replace your home.

When tragedy strikes, your homeowner’s insurance policy provides stated-mandated coverage for Additional Living Expenses (ALE) that you can use to pay for temporary housing. But if your insurer is State Farm, the company may have rejected or limited your ALE following the Eaton and Palisades wildfires. If so, you may have a claim against State Farm.

The 2025 LA wildfires ripped through the metro area just after the start of the new year, charring more than 23,000 acres and displacing thousands of residents. State Farm insures more homes in LA County than any other insurer. It has received more than 12,000 fire and auto claims related to the fires.

At PMRK Law, LLP, our skilled insurance recovery attorneys, Peter Meringolo and Rebecca Kassekert, each bring more than two decades of complex litigation experience to each case we accept. They also have significant experience representing homeowners and businesses in recovering insurance from insurance companies following the tragic wildfires that have burned across California.

On this page, we’ll explain the details of the LA State Farm ALE claims and discuss how partnering with our firm may help you get the financial support you need and which you are entitled to by law.

Understanding Additional Living Expenses (ALE) Claims

ALE coverage, also known as Loss of Use or Fair Rental Value coverage, compensates policyholders when their property is destroyed, damaged or inaccessible due to a covered event, such as a wildfire. This type of coverage is offered in homeowners insurance policies.

California law requires any insurance company that offers ALE coverage to provide it for 24 months after a declared emergency covered by the policy. With proper paperwork, this coverage may be extended for another 12 months after that, although coverage limits also apply.

If State Farm has not approved you for 24 months of ALE, you may have a claim.  Please fill out our survey to start the intake process.

When Your Home Is Destroyed

You are entitled to at least 24 months of ALE if you suffered a total loss to your home in the LA wildfires. You may be entitled to additional ALE if you encounter delays in the reconstruction process.

California law protects homeowners like you, and is meant to provide some stability in the face of significant uncertainty after a wildfire. If State Farm has limited your ALE following a total loss, Please fill out our special intake form to start the process.

When Your Home Is Damaged, But Not Destroyed

You may be entitled to 24 months of ALE even if you did not suffer a total loss.  Many State Farm policyholders live in communities destroyed by the Palisades and Eaton wildfires, but their homes largely survived the onslaught of the fires.

If your home is in that category of damaged, but not destroyed, you may not be able to return to your residence for numerous reasons:

• Your neighborhood access is restricted
• Your home’s interior is covered with ash, smoke and toxins
• Your house is surrounded by piles of rubble or toxic materials
• Utility connections and other nearby infrastructure are badly damaged

Even if your home remains largely intact, the truth is that it will remain in the middle of a large-scale recovery and construction zone for many years to come.

If you did not suffer a total loss and State Farm has not approved you for 24 months of ALE, you may have a claim.  Please fill out our special intake form to start the process.

Why Won’t State Farm Pay Your ALE Claim?

State Farm has given a variety of excuses to avoid paying ALE claims. Examples of these excuses include:

• Approving only a short term lease rather than a long term lease, with potential, unknown extensions in the future
• Low balling the monthly rental allowance, limiting a policyholder’s ability to rent a similar home
• Claiming that a homeowner’s property was safe to inhabit
• Arguing that it was reasonable to assume a homeowner’s property could be repaired in weeks or months
• Claiming the expenses claimed (even with receipts) were excessive

After discussing this scenario with dozens of claimants, attorneys Meringolo and Kassekert at PMRK Law, LLP, believe that State Farm policyholders may be entitled to additional ALE benefits and are investigating the possibility of bringing a lawsuit to right the wrongs perpetrated by State Farm.

Why Hire PMRK Law, LLP, To Represent You?

Our attorneys have secured more than $1 billion for plaintiffs in complex litigation, including landmark insurance coverage cases worth hundreds of millions of dollars in disputed insurance proceeds for policyholder clients after natural disasters. We have counseled clients in California and Hawaii on insurance claims after wildfires and, when necessary, brought lawsuits on their behalf to recover funds.

Our attorneys strive to be practical, principled and approachable. We care deeply about our clients, provide one-on-one attention, and propose practical solutions to their legal situations. Whether your case ends up in court or is settled through mediation, we aim to produce powerful results for you.

Answers To Common Questions Related To State Farm ALE Claims

Here are answers to some of the most frequently asked questions about this issue that our attorneys have received at our law practice.

What Is Included In Additional Living Expenses?

The State Farm policy requires State Farm to pay the reasonable and necessary increase in cost incurred by you to maintain your normal standard of living.  These costs could include:

• Rent a temporary living place that is similar in like kind and quality to your home
• Groceries and other food purchased while you were outside your regular home
• Extra travel expenses to attend school or get to work
• Furniture rental for your temporary housing
• Storage expenses related to being displaced from your regular home

How Do I Document My ALE Claim?

Retain copies of all letters and written communications with State Farm. Keep notes of all verbal discussions with State Farm. It is also important to get hard copies of all expenses you hope to claim as part of your ALE claim. This includes utility bills for your new rental, rent receipts (even if you pay online), and receipts for restaurant food or groceries. Our attorneys can help you access other important pieces of documentation, including notifications from the county health department or other government entity that establish your home or neighborhood as uninhabitable.

Discuss Your Los Angeles Wildfire Losses With Our Legal Team

Hold State Farm accountable for its failure to honor ALE coverage as required by California Law after the catastrophic Los Angeles wildfires. At our firm, we care about your losses, and we have the experience to help you recoup the compensation you need and deserve. To discuss your situation with us, fill out our special intake form for State Farm Alternative Living Expense Claims. We work with clients across California, including the LA area, Pacific Palisades and Altadena.