What 2,000 Survivors Told Us: Financial Strain Is Defining Recovery
Recovery across Los Angeles remains uneven, now more than a year after the Eaton and Palisades fires. Some families are beginning to rebuild, and there are signs of progress. Yet, 2 in 3 survivors are still displaced. And for many, the defining challenge is no longer navigating the immediate crisis—it is the financial strain that makes recovery increasingly difficult to sustain.
The latest Department of Angels Community Voices: LA Fire Recovery Report points to a pattern: as temporary housing coverage runs out and rebuilding costs rise, survivors are left to bridge gaps that are too large to close on their own. For many households, recovery is becoming financially fragile, and confidence in long-term recovery is beginning to erode.
Coverage for Temporary Housing Is Running Out
Financial strain is the central theme of recovery. Nearly half of survivors have already run out of displacement coverage or will lose it within the next year. That includes 22% who have already exhausted their coverage and another 24% who will lose it within the next 12 months. Only 16% have a year or more of temporary housing coverage remaining. The remaining 38% of survivors either do not have this type of coverage at all, or are unsure of how much they have left.
“I'm almost 80 years old & never thought I'[d] be worried about how to pay my existing mortgage on the house that is no longer there, HOA fees & now rent!”
— Pacific Palisades survivor
As this coverage ends, many households are entering a period of heightened instability. The gap between housing needs and financial capacity is already visible: 40% of survivors say they could afford temporary housing for six months or less once coverage ends. Of those, 14% say they could last less than one month, and 27% are unsure how long they could continue.
Rebuilding Costs Are Rising
Rebuilding or repairing is becoming harder to afford. Out-of-pocket cost is now the single greatest barrier to rebuilding, cited by nearly 2 in 5 survivors. For most, insurance does not cover the full cost of rebuilding. The median gap between insurance payouts and rebuilding costs is now estimated at $500,000–$600,000 for homeowners. Nearly 1 in 3 renters report needing more than $200,000 to recover their losses.
“I have maxed out all of my credit cards and borrowed money from my friends. I have gone through every bit of savings that I ever had. All of that, and my short term rental is now up and I have to move the kids again. … I doubt that I will ever recover from this. I'm [a] 51-year-old, single mother to twins with special needs, I did the best I could to get by every day. And now I feel like I'm barely surviving.”
— Altadena survivor
These gaps force difficult tradeoffs—draining savings, taking on debt, delaying rebuilding, or cutting back on basic needs like food, healthcare, and bills.
Insurance Challenges Are Worsening
Insurance claims remain a persistent issue and contributor to financial precarity. About 4 in 10 survivors still have open claims, navigating delays, burdensome documentation requirements, and unresolved disputes. For most, conditions are not improving. Only 1 in 10 say things have gotten better, while many report that challenges have worsened over time.
“We survived the fire. Surviving insurance and recovery is worse.”
— Pacific Palisades survivor
Itemization requirements are a central issue, affecting 80% of survivors and becoming more challenging as recovery continues. Survivors with standing homes—especially those managing both structural and smoke or ash damage—face the greatest difficulty and are more likely to encounter claim denials. As a result, many are left without timely payouts for legitimate losses, intensifying cash flow challenges and prolonging financial instability.
A “Hope Gap” Is Emerging
These pressures are shaping how survivors see their future. Most survivors who experienced damage or total loss, 72%, still plan to rebuild or repair. But that intention is often conditional. More than a quarter of those survivors say they can only move forward if they find a financially viable path. At the same time, about 1 in 5 remain undecided about what to do next.
When asked about their long-term recovery outlook, the largest group of survivors, 41%, say they feel hopeful but uncertain. Confidence varies sharply by experience. Survivors who lost their homes entirely are the least confident, with just 28% believing they will recover. Income deepens this divide. Higher-income households are more likely to feel confident, while those with fewer financial resources are more likely to feel uncertain or doubt that recovery is within reach.
“It's not evident that Altadena will remain as diverse as it was, or that the long-term homeowners there will ever be able to afford to come back.”
— Altadena survivor
Together, these patterns point to a growing “hope gap,” where survivors’ perceived ability to recover is increasingly tied to financial capacity. Over time, perceptions can shape decisions—whether to rebuild, relocate, or wait—decisions that, in aggregate, can influence the stability and composition of affected communities.
Where Progress Is Taking Shape
There are signs of progress that offer insights into what is working. Access to soil testing has increased, particularly among survivors with total loss. In December, about a third had tested their soil. Now, nearly half have. At the same time, about 1 in 5 survivors still want testing but have not been able to access it.
Mental health indicators have also improved slightly. Seventy-four percent of survivors report worse mental health than before the fires—still high, but lower than in December. At the same time, 11% now report better mental health, the highest level recorded so far. Many point to access to therapy as a key factor.
“The support and backing of the whole community, and the large donations, give me faith in humanity.” [Translated from Spanish.]
— Pacific Palisades survivor
These shifts show that when support becomes available, survivors use it. But they do not offset the broader financial pressures survivors are living with.
Survivors are doing their part to change the trajectory of recovery, and are deeply engaged beyond their own households. Nearly 8 in 10 have taken civic action—attending meetings, signing petitions, or contacting elected officials—and many are stepping into volunteer leadership roles. This level of engagement is consistent across communities, regardless of damage or income, and reflects a shared determination to strengthen the communities people call home.
What This Moment Requires
Determination alone cannot carry recovery forward. Survivors are clear about what is needed. They continue to call for leadership, resources, and coordinated action to:
Provide emergency and long-term housing solutions to ensure every displaced family has a path to stability
Create a more accessible, fair, and climate-ready insurance market so survivors can repair, rebuild, and stay insured
Ensure access to science-based testing and cleanup so survivors can return home with confidence
Support neighborhood-scale fire hardening that pairs community vision with smart policy
Release federal disaster recovery funds to accelerate recovery
“We feel like we've been abandoned… We need real help—financial funds to rebuild (not just… SBA funding), immediate rent assistance, free mental health services… We need our officials to care rather than lip service.”
— Altadena survivor
These challenges are connected to each other. Addressing them together is essential to keeping recovery on track.
At the Department of Angels, we work to translate the insights of our Community Voices report into action—advancing practical solutions across housing, environmental health, insurance, and rebuilding to close gaps in recovery.
Learn more about our impact, and download the full report.