By law, if your home or property is damaged or destroyed in a California wildfire, you are entitled to recover the full costs of restoring your property. This includes the actual cost to replace all damaged trees, vegetation, landscaping and structures. Under Southern California Edison’s (SCE) Diminution in Value payment program, however, property owners are receiving vastly reduced payments for their losses. Before accepting SCE’s offer for your Eaton Fire losses, it is critical to understand what you may be giving up. Get an accurate overview of your rights during a free consultation at Bridgford, Gleason & Artinian.
What Is SCE’s Diminution in Value Method?
SCE’s Wildfire Recovery Compensation Program, announced in 2025, is designed to offer expedited payments to those affected by the Eaton Fire in California. The method SCE is using to calculate settlement offers, however, is a Diminution in Value formula. This formula has nothing to do with the actual cost to restore property. Instead, it is designed to reduce the value of each claim for the utility company’s benefit.
Under the Diminution in Value method, SCE calculates a wildfire victim’s payout by subtracting the post-fire market value of the home or property from its pre-fire value. Then, SCE divides that value by the square footage of the home. This approach results in lower-than-expected offers that are only a small percentage of what it will actually cost for the victim to repair or replace destroyed property.
What Does SCE’s Payment Program Mean for Home and Property Owners Affected By the Eaton Fire?
The valuation formula under SCE’s compensation program has drawn criticism from California attorneys who represent wildfire victims for significantly lowering payouts compared to what victims can recover through wildfire litigation against the utility company. The compensation program has replaced the legal standard of homeowners being entitled to the actual cost of property restoration with a payment model that serves the needs of SCE, not wildfire victims, by ultimately lowering what homeowners are paid.
It is important to understand that accepting a settlement offer or payout through the SCE Eaton Fire Compensation Program is entirely voluntary. It is generally not recommended by wildfire attorneys, as it is most likely not in a victim’s best interests. While a prompt, direct payment for your wildfire damage may be tempting, this “Fast Pay” system prioritizes prompt payouts over what is just or fair. Before you sign your rights away to seek far greater compensation through wildfire litigation, consult with an attorney.
Protect Your Rights and Future With Help From Bridgford, Gleason & Artinian
As a victim of the Eaton Fire, you should be aware of your legal right to sue SCE and the fact that you would permanently give up this right if you accept a payout through the utility company’s compensation fund. Before signing anything, you should always consult with an attorney at Bridgford, Gleason & Artinian for cost-free, pressure-free advice about your individual situation.
Our law firm is hosting a town hall informational meeting for victims of the Eaton Fire on January 28th and January 31st at the Scottish Rite Events Center (150 N. Madison Ave., Pasadena). You can learn more about SCE’s Diminution in Value calculation method and get tips for how to maximize your compensation from our knowledgeable wildfire attorneys. You can also contact us anytime to schedule a free consultation about your Eaton Fire case.