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Insurance

May 20, 2026

Insurers denying disaster housing benefits without legal basis

After the Eaton and Palisades fires, insurers are reportedly terminating Additional Living Expense benefits by requiring policyholders to demonstrate rebuilding progress, a condition not set forth in California Insurance Code section 2060.

Shant A. Karnikian

Managing Partner and Trial Attorney
Kabateck LLP

Phone: (213) 217-5000

Email: sk@kbklawyers.com

Loyola Law School

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Michael Childress

Of Counsel
Kabateck LLP

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David Furtado

Founder
Furtado Law PC

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Insurers denying disaster housing benefits without legal basis
Shutterstock

In the aftermath of the Eaton and Palisades fires, policyholders are already fighting the usual battles with their insurers--over scope of damages, cost of repair, and proper cleaning methodology. A new issue is brewing that should raise serious concern as it blatantly violates California law.

Insurers are cutting off Additional Living Expense (ALE) benefits before the statute allows them to--by imposing a condition that does not exist in the la...

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