President Donald Trump has weighed in on the difficulty for people trying to rebuild their homes following the deadly fires in California in January 2025, specifically calling out insurance companies. Residents have previously told Straight Arrow News that insurers have been less than helpful in paying out contracts.
Trump’s post
Trump took to social media, saying he met with several members of Congress about issues with insurance companies.
“It was brought to my attention that the Insurance Companies, in particular, State Farm, have been absolutely horrible to people that have been paying them large Premiums for years, only to find that when tragedy struck, these horrendous Companies were not there to help!” Trump said.
State Farm was also specifically called out by sources in previous SAN reporting. The insurance giant sent SAN a statement in response to Trump’s post, citing its earlier response to the fires.
The president also plans to have his administration look closer into the issues.
“I have asked the Administrator of the U.S. Environmental Protection Agency, Lee Zeldin, to give me a list of the Companies who acted swiftly, courageously, and bravely in order to make their clients happy and, even more importantly, in order to fulfill their Legal obligations,” Trump wrote.
Kambiz Kamdar, a Palisades resident and the founder of Pali Builds, a website that tracks rebuilding, told SAN he has seen Zeldin in the community.
“The fact that our voices are being heard up at the highest office is great to know,” he said.
Meanwhile, there are several lawsuits over the rebuilding, including at least one specifically against State Farm.
Resident reaction
People involved in the rebuilds in California, especially those in Pacific Palisades, shared sentiments similar to the president’s message.
“Political stance aside, that’s the best statement he’s made,” Kamdar said.
Others were happy with Trump’s comments, but more surprised.
“That’s amazing he would do that, because it’s not the side you expect him to be on,” Peggy Holter, a resident who lost her home and is now a board member of the homeowner’s association, told SAN.
“Pacific Palisades is generally a liberal community, and there’s probably not a high percentage of Trump supporters out here,” Mark Smith, a resident who lived in the Pacific Palisades for 40 years before losing his home in the fire, told SAN. “That said, residents are looking to anyone that will support them. Trump is correct that there have been bad players in the insurance community, and I believe he has a good opportunity here to earn some respect and approval if he’s able to help get insurance proceeds to residents that dearly need government assistance.”
During that previous reporting from SAN, residents like Smith and Holter expressed their frustration at insurance companies as they tried to rebuild their burnt homes. That especially includes State Farm.
“State Farm dropped a lot of homeowners and HOAs in late 2024 and left us exposed,” Smith said. “And my HOA was impacted by State Farm dropping us in 2024, probably around October of the year. All we had to go with was California FAIR Plan, which had a max of $20 million of coverage. We dropped from $48 million to $20 million. And as such, we were adversely impacted pretty significantly by what State Farm did.”
What’s next?
While a post from the president drew some hope from those on the ground in California, they also made sure to share that it doesn’t mean anything is changing tomorrow, even despite what Trump posted.
“I have asked to see those Companies that were particularly bad,” Trump wrote. “The names of some surprise me, but in the World in which we live, nothing really surprises me! State Farm, and others, should get their act together, and treat people fairly. The Government is looking into this matter as we speak!”
Those SAN spoke with hope that it’s not just talk.
“I would like if he would follow through on that,” Holter said.
Kamdar shared similar sentiments.
“Hopefully it brings attention to the issue and puts a little pressure on these insurance companies,” he added. “I feel like they’ve been able to get away with doing what they’ve been doing for the past 15 months.”
While there is a specific lawsuit against State Farm, there are numerous lawsuits against insurance companies. That includes one alleging insurance companies colluded to drop coverage in fire-prone areas.
The president didn’t announce any specific actions he plans to take, but Smith said there are some things he can do.
“If there was something that Trump could do, it would be to extend FEMA rental assistance and benefits beyond the July 8, 2026, expiration,” he said. “A one-year extension was granted to Maui by Biden after they had their wildfires.”
Insurance issues
The insurance issues in the rebuild have been well documented over the last 15 months.
“The biggest issue is just fighting to get every single dollar to rebuild, and they’re coming in with low ball estimates of what’s going to cost to rebuild, talking about $300 to $400 a square foot, when in reality, it’s double that at least,” Kamdar said, “It’s really just these insurance companies are grinding down these homeowners to the point that they’re just having emotional breakdowns and wanting to give up and sell their lots and move on.”
Kamdar added that hasn’t changed since the last SAN report two months ago.
“It’s still the same,” he said. “People are still fighting with their insurance to get every dollar they can. I still have people reaching out to me every day, needing help, providing estimates, providing various information to see what they can get out of their insurance company.”
Money to rebuild homes has been an ongoing issue since firefighters put out those flames.
While that money to rebuild is the obvious concern, those on the ground shared other concerns.
“It’s not just the insurance payouts for home damage and loss, it’s also this payout on loss assessment insurance,” Smith said.
He said at least five homeowners in his HOA still can’t get insurance to do the assessment.
“There’s still bad players,” Smith added. “It’s not just on the main insurance, but it’s also on these loss assessment insurances.”