Edison is changing how it plans to pay Eaton Fire victims. What you need to know

Edison International on Wednesday announced a recovery compensation plan for victims of the Eaton Fire that company officials said would provide “fast payments and fair resolutions.” The announcement was made on LAist’s AirTalk daily news show.

Who is eligible?

Edison will accept claims from homeowners, renters and businesses affected by the Eaton Fire in a variety of ways. That includes total or partial structure losses, homes with smoke and ash damage, commercial property loss, business interruption, non-burn damage (such as smoke, soot or ash), physical injuries, emotional distress and deaths.

Survivors who already sold their properties are also eligible for the program. Hedge funds and insurance companies are not.

See the full proposal here and what changed from the previous proposal here. Edison provided a map of which properties are eligible (LAist has inquired about a higher resolution image).

How the payouts work

Survivors can choose two paths for a payout:

1. Edison’s “fast pay” option will provide an offer within 90 days of submitting a claim. If the claim is accepted, payment will be made within 30 days. 
2. If survivors don’t feel the first offer is fair, they can choose to have a “detailed review,” which can take up to nine months for a payment offer, but there’s no guarantee that offer will be higher. 

Instead of accepting a payout, survivors can also pursue legal claims against Edison. Accepting a payout will include agreeing not to sue Edison, the company says.

But survivors can continue their litigation at the same time as applying for the payout program.

“Somebody can go through the entire program and decide at the very last minute they don't want to participate. That's OK,” Edison Chief Executive Pedro Pizarro said on AirTalk.

If they use an attorney to apply for Edison’s payout program, which is not required, survivors will receive an offer for additional compensation equal to 10% of their net damages to help cover that cost.

Claims will be evaluated using a model developed by Compass Lexecon, with methodology independently analyzed by RAND, to determine the property’s value and how much the company will pay out. The program is voluntary, and there are no fees.

There is no limit to the number or maximum amount of payouts, Pizarro said.

Edison has put together multiple examples of how payouts may work at the “View Sample Offers” tab on this page.

How does the payout work with insurance?

Edison will deduct any insurance coverage from its offer.

“We are hoping that insurance companies step up and do their part here, too, and treat everybody impacted fairly,” Pizarro said.

“We need to make sure that we don't end up with double payments,” Pizarro added.

Find more details on the company’s FAQ about the program.

Where to get more info

Multiple sessions have been scheduled for participants to learn more about the program. Registration information is available at sce.com/directclaims for the first two scheduled sessions:

• Saturday, Nov. 1, 10 to 11:30 a.m., John Muir High School (1905 Lincoln Ave., Pasadena). Register here. 
• Wednesday, Nov. 5, 7 to 8:30 p.m. (virtual). Register here. 
• You can also call  (888) 912-8528 (Monday through Friday from  7 a.m. to 7 p.m. and Saturdays from 8 a.m. to 5 p.m.) with questions about your specific situation. Assistance is available in Spanish and other languages. 

To get more details, go to Edison’s Wildfire Recovery Compensation Program webpage.