Strategic Recovery After the LA Wildfires

Hear from Comerica's leaders from the Los Angeles area on what steps you can take to help in your recovery journey. 

Natural disasters often leave those impacted with more questions than answers. The Palisades, Eaton and Hurst wildfires are no exception.

If you’ve been impacted by the recent devastation, you’re likely facing decisions you never thought you would have to make — where to go, what to prioritize and how to move forward. This guide is meant to provide clear, actionable answers, helping you plan the path forward.

Immediate Steps if You or Your Business Have Been Affected

When disaster strikes, taking immediate and strategic steps can make a major difference in your rebuilding process. Whether you're dealing with personal impacts or managing the impact on your business, here are ways to get started.

Personal Impact

Safety is the top priority when dealing with the loss of a home or a forced evacuation.

1. The first step once you and your loved ones are in a safe location, is to address your immediate needs. If you’ve been displaced by the fire, that means securing temporary housing.

• Check your insurance coverage for housing needs: If you have homeowner’s or renter’s insurance, contact your provider to see if temporary housing or short-term rentals are covered under your policy.
• Consider requesting an advance payment: Even if your insurance policy does not include temporary housing coverage, you may be able to apply for immediate funds from your insurance provider to cover temporary housing, clothing or essential supplies. This can provide stability while your full claim is processed.
• Access FEMA Disaster Housing Assistance: Visit FEMA Disaster Assistance to check your eligibility for support, including short-term housing, rental assistance or hotel reimbursement programs.
• Look into local emergency shelters: Many communities affected by wildfires offer temporary shelters through organizations like the Red Cross and 211LA. Reach out to local resources to explore your options.
• Be cautious of fraud: When seeking temporary housing, be aware of scams targeting those impacted by disaster. Fraudsters may pose as contractors, landlords or FEMA representatives. For tips on protecting yourself from fraud during recovery, read Team Rubicon’s guide to avoiding wildfire relief scams.

2. Once your immediate needs are met, the next critical step is managing your insurance claims to begin the recovery process. Acting promptly and staying organized can help you access insurance funds faster.

• Contact your insurance provider immediately: Notify your insurance company as soon as possible to start the claims process. Request guidance on the required documentation and next steps.
• Review your coverage for secondary homes and high-value assets: If you own additional properties or assets like jewelry, vehicles, boats or high-value equipment, confirm they’re covered under your policy. Additional riders or endorsements may apply.

3. You will also need thorough documentation to support your insurance claims and any assistance applications. Keep detailed and organized records of damages to help streamline the process and make sure nothing is overlooked.

• Take precise photographs: It’s important to capture clear photos of all damages to your property, both inside and outside. Pay special attention to high-value assets such as electronics, vehicles, or appliances. For more details on safely checking your home for damage, read this article from the Red Cross.
• Keep an inventory of lost or damaged items: Create a detailed list of everything affected, including descriptions, estimated values, and, if possible, receipts or proof of purchase. This will help validate your claim and provide clarity during the process.

4. For those facing the heartbreaking reality of a total loss after the fire, take these additional steps:

• Work with your insurance provider: Insurance companies often have procedures for total loss scenarios. They can guide you on what alternative documentation (such as prior photos, appraisals or purchase records) may be needed to support your claim.
• Reconstruct records: Start by listing what you can remember, focusing on major items and high-value belongings. If you don’t have receipts or photos, use bank or credit card statements to provide proof of purchase.
• Request guidance on total loss valuation: Ask your insurance adjuster to explain how your policy handles total loss, including replacement value or actual cash value options.

Lastly, the process of documenting losses can feel overwhelming. Give yourself permission to take breaks when needed and lean on friends, family or support groups for encouragement. Remember, this step is not just about the paperwork — it’s creating a path toward rebuilding.

Business Impact

For business owners and leaders, natural disasters introduce financial and operational challenges that require immediate attention.

1. Thoroughly documenting the damage to your business is a critical first step in securing financial assistance and filing accurate insurance claims.

• Record damages to property, inventory and equipment: Take clear photographs and videos of damaged facilities, tools and inventory. Create a detailed log with descriptions and estimated values.
• Retain financial records to estimate lost revenue: Use sales records, bank statements and tax returns to calculate the financial impact of business interruptions. These documents will help substantiate claims for insurance or disaster loans.
• Consult with a professional for complex cases: If your losses are extensive or difficult to quantify, consider hiring a public adjuster or financial advisor to help ensure accuracy and maximize recovery.

2. Next, coordinate with your insurance provider to begin the claims process and secure the support your business needs to recover. Accurate and timely communication will help you avoid delays.

• Consult with a professional for business interruption claims: Work with a trusted advisor or adjuster to ensure your claim accurately reflects lost revenue and additional expenses caused by the disruption.
• Obtain copies of your insurance policies: Having your policy on hand ensures you understand your coverage limits, exclusions and filing deadlines.
• Be mindful of deadlines: Many policies have strict timelines for filing claims. Start the process as soon as possible to avoid complications or delays.

3. Finally, after addressing immediate needs and documenting your losses, set aside time to explore the financial assistance programs available to support your recovery. From low-interest disaster loans to local grants, these resources can provide the funding you need to repair damages, restore operations and stabilize your business for the future.

• Consider applying for an SBA Disaster Loan: The Small Business Administration (SBA) offers low-interest loans for physical damage repairs and economic recovery. Visit the SBA Disaster Assistance website for more information and to apply.
• Look into local grants and resources: Organizations like the Los Angeles County Economic Development Corporation (LAEDC) provide grants and resources for impacted businesses. Visit LAEDC Resources to learn more.

Fraud Risks

Unfortunately, fraudsters often use natural disasters as an opportunity to exploit individuals and businesses during vulnerable times. As you work to secure housing, file claims, and begin the process of rebuilding, be proactive about fraud prevention to protect your finances and personal information.

1. First, work with accredited professionals. Only hire licensed contractors, reputable insurance companies, or service providers referred by a trusted source. Verify credentials through local business directories, online reviews, or professional licensing agencies to avoid scams.

2. Next, if you suspect fraudulent activity, contact your bank and consider placing a freeze on your credit. This prevents unauthorized parties from opening accounts in your name.

3. Lastly, protect your personal and business information. Use caution when sharing sensitive details, such as Social Security numbers, bank account information, or insurance policy details. Verify the identity and credentials of anyone requesting your information and avoid sharing it over unsecured channels or with unverified individuals.

Tax Relief and Recovery Options

Federal, state and local tax relief and recovery programs have been created to support individuals and businesses impacted by the fires. These programs can reduce your tax burden, extend deadlines or offer deductions for fire-related losses.

At the federal level, the IRS has postponed a number of filing deadlines — including the upcoming April 15, 2025 deadline for individual income tax returns. For taxpayers within the covered disaster area, the IRS will automatically apply filing and payment relief. You can find more information on the IRS announcement page and contact the IRS disaster hotline at 866-562-5227.

Similarly, California Governor Gavin Newsom signed an executive order suspending certain state tax laws. For more details, including a list of eligible zip codes, visit the governor’s announcement here.

To explore and claim tax relief, work with a qualified tax professional.

Key Resources for Recovery

A wide variety of resources are available to help you navigate these uncertain times. For easy access, below is a list of key resources available to individuals and businesses:

Assistance Links:

• FEMA Disaster Assistance: FEMA.gov
• State Emergency Services: CAL FIRE Current Incidents
• Disaster Assistance Programs: disasterassistance.gov
• Los Angeles County Emergency Information

Nonprofit Resources:

• California Community Foundation Wildfire Recovery Fund: Grants for community organizations.
• Pasadena Community Foundation Eaton Canyon Fire Relief Fund: Supports urgent community needs.
• Bet Tzedek and Public Counsel: Free legal assistance in English and Spanish for small businesses.
• CALED Economic Development Recovery and Resiliency Playbook: Tools for economic disruption recovery.
• Main Street America Disaster and Resilience Toolkit: Tools for natural disaster preparation and recovery.
• West Business Development Center: On-demand disaster planning webinar.

Financial and Insurance Support:

• Insurance claims: Contact your insurer immediately for claim deadlines and procedures.
• Tax relief for fire-related losses: Explore tax relief options for fire-related losses via the IRS’s disaster tax relief program (IRS Tax Relief).
• Small Business Administration (SBA) Disaster Loans:
  • Physical damage loans: Apply by January 28, 2025.
  • Economic Injury Disaster Loans (EIDL): Apply by July 7, 2025.
  • Application:
    • Online: Begin the application process at the SBA Disaster Assistance website.
    • In person: Disaster Loan Outreach Centers (DLOCs) are available in Los Angeles and Ventura counties.
      • Ventura County DLOC: Details can be found on the SBA website.
      • Los Angeles County DLOC:

• State Supplemental Grant Program (SSGP) and Disaster Case Management Program (DCMP)
  • Application deadline: These programs are available following FEMA assistance; apply promptly after receiving FEMA aid.
  • How to apply: Visit the California Department of Social Services Disaster Help Center for application details.

Legal and Emotional Support

• Legal advice: Seek legal counsel if you encounter disputes with insurance providers or need guidance on complex claims. For help finding the right attorney, consult with your financial advisor, visit the California State Bar website or use an attorney review website like Avvo.
• Counseling services: Access emotional support through organizations like the Red Cross or the disaster distress hotline, available at 1-800-985-5990.

How to Stay Informed

• CAL FIRE (California Department of Forestry and Fire Protection)
• Los Angeles County Emergency Information
• FEMA (Federal Emergency Management Agency)
• Local news outlets, such as The Los Angeles Times

Proactive Steps for Future Protection

Recovering from a wildfire is a taxing process. And if you’re currently navigating its aftermath, planning for the future may feel far from your mind. Yet, as you rebuild, consider incorporating these proactive protections to add a sense of security during these uncertain times.

Wildfire Preparedness

Protecting your home and property starts with mitigating risks. To prepare your property for future fire threats, take the following steps:

• Create defensible space: Clear flammable vegetation and debris from around your property. Experts recommend a minimum of 30 feet of defensible space — and up to 100 feet in high-risk areas.
• Invest in fire-resistant materials: Consider using fire-resistant materials like Class A roofing, metal siding or non-combustible windows when constructing or upgrading your home. Ember-resistant vents and fireproof seals can also prevent sparks from entering your home during a wildfire.
• Secure important documents: Store essential documents such as insurance policies, property deeds, birth certificates and financial records in fireproof safes or waterproof folders. Create digital copies of your most important documents so they can be stored securely in the cloud for easy access at all times.
• Assemble an emergency kit: Prepare a kit with at least seven days’ worth of essentials, including non-perishable food, water, medications and a first-aid kit. Include items like flashlights, batteries, portable phone chargers, blankets and a battery-powered radio for staying informed during emergencies.

Financial Preparedness

A solid financial plan can help you respond faster when emergencies arise. Here are key actions to help strengthen your financial resilience:

• Review your insurance policies annually: Regularly evaluate your homeowner’s or renter’s insurance policy to make sure it adequately covers your property and belongings, including primary and secondary homes, as well as high-value assets. Also, discuss coverage updates with your insurer, especially if you’ve made recent upgrades to your home, vested your home in a trust or other entity, or acquired new assets.
• Establish an emergency fund: Set aside dedicated funds for unexpected expenses, such as temporary housing, repairs or essential supplies. Avoid storing or saving cash in your home unless it is secured in a fireproof safe. For better accessibility and security, consider keeping your emergency fund in a liquid savings account.
• Understand your coverage: Verify that your policies cover the most common risks in your area, such as wildfires, flooding or earthquakes. Review any exclusions in your policy and consider adding riders for coverage gaps, like fire-specific protection or additional living expenses.

Business Preparedness

For business owners, preparation can mean the difference between recovery and shutting your doors. Consider these proactive steps to safeguard your business from future disasters:

• Develop a continuity plan: Identify potential risks, such as supply chain disruptions or power outages, and outline clear strategies to address them. Develop a communication plan to keep customers, vendors, and employees informed during difficult times.
• Diversify suppliers: Relying on a single supplier increases your vulnerability during emergencies. Source backup suppliers for critical materials, equipment, or inventory. Establish relationships with these vendors before they’re needed.
• Maintain detailed records: Regularly update financial records, including income statements, balance sheets and tax returns, and operational data to reflect your business’s current status.

How Comerica Can Help

In the wake of the wildfires, Comerica is committed to supporting individuals and businesses in affected communities. To help those impacted, Comerica has contributed $100,000 to wildfire relief efforts, including $50,000 to the American Red Cross and an additional $50,000 for local organizations assisting residents in Los Angeles, Orange and San Diego counties.

Additionally, Comerica financial advisors are here to provide personalized guidance and resources to help you rebuild and plan for the future. Whether you’re securing your financial stability or navigating the complexities of recovery, we can help with the following:

• Expert guidance on reviewing insurance policies and protecting high-value assets.
• Support in creating customized financial strategies for personal or business needs.
• Insights into managing disaster relief funds and rebuilding your financial stability.
• Access to financial services, such as safe deposit boxes, to help you protect important documents and sentimental valuables.

As you plan for what’s next, connect with a Comerica advisor to create a financial strategy and discover opportunities to help rebuild and secure your future. To speak with a Comerica representative today, contact us here. 

For more questions about this article and navigating the recovery process, contact Stephen Sherline.