Can You Claim Compensation for Non-Economic Losses from California Wildfires?

Over 12 wildfires have spread across the state of California in the first month of 2025, and experts believe the ones in LA County specifically could be some of the most expensive fires in history. Experts project the collective losses to land somewhere between $135 and $150 billion.

If you’ve recently felt the impact of the California wildfires first-hand, then it’s important for you to fully understand your options for financial recovery. You’ll want to thoroughly research every avenue of recourse, including potentially collecting non-economic damages from a negligent party through a lawsuit. In general, you won’t be able to collect these types of losses from an insurance claim.

Here at Kermani LLP, our team of California wildfire attorneys can help you identify your options and pursue the compensation you need to move forward from this disaster.

What are Non-Economic Damages?

Non-economic damages are defined as the losses you sustain that aren’t easy to prove or put a price tag on. These losses are usually subjective and intangible. Non-economic damages include things like emotional distress compensation, pain and suffering, or a decrease in the overall quality of your life.

In the context of the California wildfires, non-economic damages might include things like mental anguish from wildfires, traumatic memories from the evacuation, a loss of enjoyment of life, and other similar losses. If you were injured in the fires, then you might also seek out non-economic losses that occur as a result of permanent scarring, disfigurement, or pain and suffering.

Can You Claim Non-Economic Damages for Wildfire Losses?

In short, it depends on the specific circumstances of your wildfire and the losses associated with it. The longer answer is that you typically cannot claim non-economic damages through insurance settlements for wildfires, but you can seek out this type of compensation in California wildfire lawsuits.

The standard homeowners’ insurance policy typically won’t cover emotional distress or other forms of non-economic damages when you file a California wildfire claim. This type of policy will help you recoup from losses like:

• Property damage;
• Evacuation expenses; 
• Rebuilding expenses.

Pain and suffering claims, however, can be sought out if there is a negligent party that you can pursue a lawsuit against. Currently, multiple lawsuits have already been filed against several different parties, including the utility company Southern California Edison. Plaintiffs allege that the utility company’s failure to properly maintain and secure their power lines during the extreme fire conditions and powerful winds caused the Eaton fire to escalate.

Further evidence of these claims comes in the form of a report filed with the California Public Utilities Commission, which states that a downed conductor had been discovered at the site where the Hurst Fire began.

California Laws Protecting Wildfire Victims

Several laws in California protect the rights of wildfire victims. Property damage claims are typically handled under insurance policies. California has several laws that protect wildfire victims from being unfairly denied coverage. Personal injury laws also allow for legal compensation for wildfire victims through lawsuits against a negligent party.

A recent order executed by Insurance Commissioner Ricardo Lara requires insurance agencies to make advance payments on California wildfire insurance claims during these recent fires. This order is designed to protect victims and help them speedily recover.

Another recent law passed by Governor Newsom protects wildfire victims from unsolicited cash offers and predatory land speculator practices. If you’ve been contacted by a real estate agency seeking to take advantage of your tragedy, then reach out to a lawyer about your options.

Proving Non-Economic Damages in a Wildfire Claim

One of the most difficult aspects of filing for non-economic damages is proving your losses. By their very nature, non-economic damages are subjective and difficult to quantify. You won’t be able to produce bills, receipts, or a diagnosis to truly prove the extent or severity of your losses, but you can use this type of proof as contributory evidence that details the extent and severity of your losses.

On top of the hard evidence that shows your economic losses, you’ll want to produce a personal testimony that details how the losses have impacted you. In some cases, you may be able to hire an expert witness who can further testify about the extent of your losses.

Challenges in Quantifying Non-Economic Losses

Once you are able to prove your non-economic losses, you’ll face yet another challenge in determining the value of those losses. For instance, how can you put a price tag on the loss of enjoyment of life after losing your family’s generational home?

Considering this, California courtrooms typically utilize the “multiplier method” to calculate the estimated value of non-economic losses in a personal injury claim. Here’s how the method works. First, you’ll want to add up the total value of all your economic losses. This should include things like the value of your property loss, the costs of any medical treatment you received, bills associated with therapy or counseling, evacuation expenses, and any other financial costs you’ve incurred as a result of the wildfire.

Next, the court will analyze the overall extent of your losses and the severity of your case. Based on all the information and proof you present, they’ll assign a number between one and five to your non-economic damages.

Finally, the court will multiply your total economic losses by that multiplier number to come up with an overall value of those non-economic losses. As an easy example, if your economic losses total $20,000 and the court assigns a multiplier of two, then your total non-economic losses will be valued at $40,000 ($20,000 x 2 = $40,000.)

The Role of Legal Support in Non-Economic Damage Claims

Everything about filing a California wildfire claim is complicated, from pursuing what you deserve from your insurance company to seeking compensation for non-economic losses. It’s important for you to have a solid understanding of California personal injury laws if you want to pursue non-economic losses, so it’s typically in your best interests to consider looking for legal support in the form of a California wildfire attorney.

The right attorney will help you identify your options, review your insurance policies, consider potentially negligent parties, collect evidence to strengthen your claim, file the right paperwork, negotiate with the other party, and aggressively advocate for you throughout the whole process.

Steps to Take to File a Non-Economic Damages Claim

Are you considering filing a lawsuit to pursue non-economic damages after a wildfire? If so, then it’s in your best interests to get in touch with California wildfire injury attorneys for legal advice that’s personalized to your unique circumstances.

That said, it’s generally best to first review all your potential options for recovery. You’ll want to review any existing insurance policies you have and consider all the potential parties that could be held negligent for the fires under California law. Taking this step will help you get a better idea of your options moving forward.

Next, start collecting as much evidence and documentation as possible to prove your losses. When it comes to non-economic losses, it’s going to be an uphill battle to prove not only your losses but their value, too. Since the value of non-economic damages is often tied to the value of your economic losses in personal injury claims, you’ll want to produce as much evidence as you can that shows your economic losses.

Your next step will involve filing the official paperwork necessary to officially file the claim against the negligent party. When that party receives the lawsuit information, they will have the chance to review the evidence and reach out to you or your lawyer to begin negotiating.

With the right lawyer, evidence, and persistence, your case will likely get resolved during the negotiation phase. If the other party refuses to pay you what you’re entitled to, then the right attorney won’t be afraid to take your claim to court.

Are You Ready to Speak with a California Wildfire Attorney?

Are you ready to speak with a California wildfire attorney about the damage you’ve sustained? Kermani LLP was established in 2011 with one main mission – to deliver justice and support to those who have been wrongfully impacted by the actions of someone else.

Our team believes everyone deserves an advocate in the legal system, and we want to be yours!

California wildfires lead to widespread losses, and they don’t end with the property damage itself. The mental and emotional scars are often long-lasting. Depending on the circumstances, you might have legal recourse and be able to pursue a lawsuit against a negligent party.

If you’re ready to go over all your legal options for recovery and get started on your claim, then schedule a call with our team now by filling out our online form. We will reach out to you and offer a free, comprehensive case assessment after your fire.