How Economic Loss Compensation Works for Tenants

Understanding the components and updates made to the program

December 05, 2025

There are multiple categories of compensation included in an offer through the Wildfire Recovery Compensation Program, including economic loss, non-economic loss, the Direct Claim Premium and attorneys’ fees, when applicable.

For eligible tenants, economic loss focuses on documented losses caused directly by the fire, such as:

  • Personal property (furniture, clothing, electronics
  • Additional living expenses due to loss of use
Renters do not receive direct compensation for structural damages as that applies only to property owners.


What Changed From Draft to Final?
Updates were made to the program prior to launch to make it simpler for tenants to file separately and without an insurance offset for personal property.

Originally, the draft protocol calculated economic compensation for tenants in a single-family residence at 40% of rebuild costs for personal property, with an offset for insurance. For example, if tenants filed together as a claimant group, an offer could look like this:

  • 40% of rebuild costs = $360,000
  • Insurance coverage = $300,000
  • Compensation = $60,000

If filing separately, under the draft protocol, there was also the potential for the amount to be prorated, if a tenant occupied only part of the property.

When the draft protocol was shared at feedback sessions this fall, tenants were clear about two things:

  1. They wanted it to be easier to file — separately, for example, if they had roommates.
  2. They preferred no insurance offset for personal property.

Based on this feedback, the program transitioned to a per-person amount, such as $25,000 for each tenant in a destroyed single-family residence, without an insurance offset for personal property. This update often results in higher compensation. In some cases, the updated approach may result in a lower calculated value for tenants in higher-priced properties compared to the original draft, recognizing that the earlier draft likely overstated amounts due to the unusually high value of the dwelling.

For example, a family of four would receive:

  • Under the old calculation: $60,000 total
  • Under the new calculation: $100,000 total
The proration component was also removed, making it easier for tenants to file separately while streamlining claim reviews and speeding up offer issuance.
This is one of more than 50 updates made to the program as a result of community input received during the draft period.

Completely Voluntary
Submitting a claim typically takes less than 90 minutes. Once you submit a substantially complete claim, you’ll receive an offer in under 90 days. No individual claimant is required to accept the amount offered. There are no fees or added costs.

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The terms and values of the Protocol govern the program. This program is a voluntary settlement initiative offered to claimants to provide a prompt and certain process for resolving disputed claims. Participation in the program does not constitute an admission of liability or wrongdoing, and the company expressly denies responsibility for the underlying events. All rights, defenses and legal positions in pending and future litigation are fully reserved. This program is offered solely as a compromise and is intended to be protected under applicable laws, including California Evidence Code sections 1152 and 1154.