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PACIFIC PALISADES, LOS ANGELES () — An Eyewitness News viewer and her family have been dealing with an insurance nightmare for more than a year after the Palisades Fire. Even though their homes survived, the family says they have had to pay thousands to move back in safely, claiming the California FAIR plan didn’t cover enough.
Norma Nahigian is thrilled to be back in the Pacific Palisades home she’s lived in for 45 years after living in a rental for almost a year.
Her home miraculously survived the Palisades Fire, but she’s not back home because of her California FAIR plan insurance. She’s back home because her son paid over $300,000 out of pocket to remediate and test the home twice to make sure it was safe.
“I don’t want to worry about money at age 97,” said Nahigian. “I really don’t. Working hard all my life and doing what I’ve done.”
Nahigian was kicked off her old insurance five months before the fire, and the FAIR plan was her only option.
“Is there a better word than upset? Have you got a better word than that? Say it, and I’ll agree to it,” said Nahigian. “I just want the public to be aware of what Palisades people go through. They don’t all have tons of money in their pockets. We must be repaid for what we have gone through and what we have paid all our lives to insurance.”
The FAIR plan provided Nahigian only $38,000 to remediate the inside of her home, which is why her son, James Nahigian, had to step in.
He grew up in the home and also lives in the Pacific Palisades. His home — just like his mother’s — survived the fire.
“I would spend virtually every day on the phone with FAIR plan, sending emails, trying to squeeze every penny out of them,” he said. “My only goal in life for the last year was to get my mom back home in the Palisades to live out the rest of her years in harmony.”
The only thing Nahigian lost in the fire was her entire back deck. The FAIR plan paid for 85% of the replacement cost. That shows how close the fire came to destroying her entire home.
That’s why when the interior of the home was tested, the levels of lead and other toxins were through the roof. It’s not safe for anyone to live in — let alone a 97-year-old.
“My sister, who lives down the hill, her home burned, her two cars burned. She’s gotten all her money from FAIR plan, and here I am. No money,” she said.
James Nahigian’s home isn’t far from his mother’s.
The FAIR plan paid him $65,000 to remediate — once again — not nearly enough. He had to pay over $700,000 out of pocket to get back home, so in total, he’s out over $1 million.
“The way Fair Plan, I’ve learned, operates is to deny and deflect, deny and deflect. That seems to be their makeup. And the policies we have are one thing for coverage, but actually getting paid is another thing,” James Nahigian said. “I haven’t hired an attorney yet. I’m looking at that. I’m thinking I will. It’s something that I don’t want to do. I shouldn’t have to do this, but like most other Palisadians, we’re forced to do it.”
The FAIR plan is already being sued for denying and limiting smoke damage claims from wildfire survivors.
The FAIR plan sent Eyewitness News the following statement:
“The California FAIR Plan deeply empathizes with all FAIR Plan policyholders who suffered losses in the devastating Los Angeles fires. While we are unable to comment on individual policyholders’ claims, the FAIR Plan evaluates every claim on its own merits and pays all covered claims up to the individual policy limits. This includes claims for FairRental Value and smoke damage. We remain committed to supporting our policyholders who have suffered a loss, and to handling each claim with compassion, integrity, and full compliance with all laws relating to property and casualty insurance claims handling.”
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