Eaton Fires Shortfall Claims
The Southern California Edison (SCE) is alleged to be responsible for Eaton fires of 2025, which caused widespread destruction. Many homeowners now face a gap between their insurance payouts and the true cost of their losses. This guide explains shortfall claims –– what they are, how they work in presence of mortgage and insurance, expected timelines and our offerings.
What is a shortfall claim?
Insurance payouts will frequently fall short of the cost to rebuild your home and the harm you suffered. This "shortfall" – which can include rebuilding costs, personal property losses, and other expenses not fully paid by insurance – is what homeowners and renters seek to recover from the party at fault.
R = Rebuild costThe total cost to rebuild or repair your property to its pre-disaster condition
D = Additional damagesLosses of personal property, car, belongings, displacement costs and other items not covered by insurance
I = Insurance coverageThe amount your insurance company has agreed to pay for your claim
A = Additional coverageAny amounts received towards rebuild and recovery costs from additional sources like FEMA, SBA loans, or other grants
Let's walk through an example
We'll calculate a typical claim step by step
Calculate Your Shortfall
- Rebuild Cost: $900,000
- Additional Damages: $100,000
- Insurance Coverage: $350,000
- Additional Coverage: $50,000
Settlement
When a settlement is reached, you typically receive a fraction of your total shortfall claim. This fraction is called the settlement rate and can range anywhere from 10% to 70%.
Example settlement rate: 50%
Legal Fee
Most lawyers work on a contingency fee basis, typically charging between 25-40% of the gross settlement value.
Contingency fee: 30%
Mortgage
If you have a mortgage in excess of the insurance payout, your lender has a right to recover their portion before you receive any settlement money.
Example outstanding mortgage: $30,000
Based on this example scenario, your final payout would be $180,000. Please note that these calculations are for demonstration purposes only – actual payouts will vary depending on your specific circumstances, including property value, insurance coverage, and settlement terms.
Ready to understand your potential claim value? Get a personalized estimate.
When is the payout expected?
Past wildfire settlements suggest payouts can take 3–7 years, and given the scale of the Eaton fires, resolution is likely to be on the longer end.
A key comparison is the 2018 Woolsey Fire in LA and Ventura counties, sparked by malfunctioning SCE equipment, leading to years of legal battles. While settlements with victims took 2-3 years, payments took nearly four years to materialize.
Given this precedent, Eaton wildfire victims should prepare for a similarly extended process.
What is the ClaimTogether offer?
Immediate Cash
ClaimTogether provides you with immediate cash today by purchasing one-third of your EXPECTED PAYOUT from 2031.
Upon final payout, we recover our principal first, then take one-third of the remaining amount. You keep the rest.
Lower Contingency Fee
Through collective bargaining, ClaimTogether aims to access legal support at fees notably lower than those of typical contingency lawyers.
Let's understand the ClaimTogether offer
We'll use the $600,000 shortfall example from above
Upfront Payment
Example upfront payout from ClaimTogether: $60,000
Lower Contingency Fee
Reduced legal fees: 15%
Payout from Recovery
You receive two-third of the payout after payback of principal.
Your Total Payout
Your total payout is the sum of the upfront payment and your recovery payout.
Summary of Benefits
- • Immediate access to cash
- • Reduced legal fees (potentially as low as 15% vs typical 30-40%)
- • No repayment if claim is unsuccessful