Recovering from a wildfire is expensive. Every year, thousands of people suffer financial strain due to the immense costs of California wildfires. One possibility for financial compensation is a settlement fund: a voluntary fund set up by the utility company responsible for causing the fire. Learn more about these funds before you make the decision to accept a payout or settlement.
What Is a Wildfire Settlement Fund?
A wildfire settlement fund – such as Southern California Edison’s Wildfire Recovery Compensation Program – offers to quickly pay those affected by the Eaton wildfire without them having to prove fault or negligence.
While this can be a tempting tradeoff, it’s important to realize that settlement funds pay pennies on the dollar of what wildfire victims are actually owed. Rather than calculating a victim’s payout according to individual needs and actual losses, a settlement fund uses a standardized formula across all claims.
This formula leaves out several damage categories, including pain and suffering. The amount assigned is presented as the “best and final offer,” pressuring claimants to quickly accept without questioning whether the amount is truly fair based on the extent of their wildfire losses.
When Is a Wildfire Settlement Fund in Your Best Interest?
If you do not have a high-dollar claim with bodily injuries or significant costs associated with a recent California wildfire, a utility company’s settlement fund may be the right way forward for your family. However, you should still consult with a California wildfire lawyer before signing anything to confirm which route is best for you.
Settlement funds can be good for people who need immediate financial relief for smaller losses. These funds are dispatched quickly – typically within 90 days – to help wildfire victims recover faster. If you are uninsured or underinsured, a settlement fund can provide you with compensation you might not otherwise be able to receive.
If you have a wildfire case involving significant losses such as a lost home or business, serious bodily injuries, emotional distress or trauma, or the death of a loved one, a settlement fund is not the right way to get maximum compensation. In these situations, contact a Orange County personal injury attorney instead to discuss your legal options.
Tips for How to Use the Money From a Wildfire Settlement Fund
Should you decide to accept a payout from a wildfire settlement fund in California, it’s important to make the most of it with a smart strategy moving forward. The funds you receive will be limited, and you may not be entitled to any further compensation through litigation.
Here are a few basic tips:
- Ensure your family’s well-being by addressing immediate financial concerns first, such as temporary housing and replacement of daily items.
- Pay for any necessary medical care related to the wildfire, such as treatments for minor burns or smoke inhalation.
- Consider using some of the money to pay off your highest-interest credit cards or loans to reduce how much they cost you in the long run.
- Look toward the future – don’t spend it all at once. Consider working with a financial advisor to outline a plan that allows your family to make the most of wildfire settlement funds.
For a personalized legal strategy, contact an experienced wildfire attorney. It’s always best to contact a lawyer before you sign up for a settlement fund created by SCE or any other party. The lawyers at Bridgford, Gleason & Artinian can explore your recovery options with you during a cost-free case review.