The SCE Wildfire Recovery Compensation Program: should you take the offer?

If you lost a home, a business or a loved one in the Eaton Fire, you have probably heard about the SCE Wildfire Recovery Compensation Program, and you may already have an offer in hand. Many families are asking the same question: should I take the Edison settlement offer, or keep my claim in the lawsuit? There is no single right answer, and you should not feel rushed into one.

This guide explains, as of October 2026, how the program works according to Southern California Edison's own published rules, who is eligible, how offers are calculated, what the release means, how insurance is treated, how the program connects to the court case and to state wildfire-fund legislation, and what supporters and critics have said. It ends with a set of questions to help you decide. It is general information, not legal advice about your claim.

What is the SCE Wildfire Recovery Compensation Program?

It is a voluntary claims program run by Southern California Edison (SCE), the utility whose transmission equipment in Eaton Canyon is at the center of the Eaton Fire lawsuits. SCE announced the program on July 23, 2025, and said at the time that how the fire started was "still being evaluated." The program's governing rules, called the Protocol, were first released on October 29, 2025 and revised on February 18, 2026.

SCE is clear about what the program is. CEO Pedro Pizarro told CalMatters, "We are approaching this as a way to settle litigation." Participation does not admit liability, and SCE reserves its legal defenses, according to the program page.

Run by	Southern California Edison (the defendant in the Eaton Fire lawsuits)
Claim deadline	November 30, 2026 (SCE program page)
Offer timing	"Fast Pay" offer within 90 days of a substantially complete claim; payment within 30 days after signed, notarized paperwork (SCE program page)
Offer stays open	90 days from the determination letter (Protocol)
Activity	More than 5,000 claims covering 15,600+ claimants; offers to 7,400+ claimants totaling over $1 billion; 4,000+ claimants paid over $550 million (SCE, October 8, 2026)

Who is eligible?

According to the Protocol and SCE's program page, eligible claimants include:

• People who owned property in the program's eligibility area as of January 7, 2025.
• Tenants with a rental agreement of at least 30 consecutive days that was in effect, and who were in possession, on January 7, 2025.
• Businesses that owned or occupied an eligible property.
• People physically injured by the fire within the eligibility area who were hospitalized overnight or treated as outpatients between January 7 and January 15, 2025.
• The legally authorized representatives of people who died on or before January 31, 2025, whose deaths the County Medical Examiner identified as directly caused by the fire.

The eligibility area is mapped in two zones. LAist reported that Zone 1 is the fire perimeter plus about 400 feet, Zone 2 is drawn from the smoke plume and nearby destroyed structures, and property damage must appear in CAL FIRE's damage inspection data. Insurers seeking reimbursement and public entities are not eligible. People who have since sold their property can still apply.

What does the program pay, and how are offers calculated?

SCE's program page says offers are designed to be comparable to past wildfire settlements, without publishing a single formula. The Protocol, however, sets out the main building blocks. Some of the published figures:

• Destroyed home. Rebuild and landscaping compensation of roughly $550 to $750 per square foot of habitable space (up to $850 with a destroyed ADU), reduced by insurance.
• Belongings. 40% of the estimated rebuild cost for owner-occupied homes; less for landlords.
• Living expenses. 42 months of a "fair rental value" derived from the home's pre-fire value for a destroyed owner-occupied home; 6 months for other damaged owner-occupied homes.
• Non-economic damages (the human cost of the loss). For a destroyed primary home, $115,000 per adult and $75,000 per child. For smoke, soot or ash damage in Zone 2 without major damage, $10,000 per adult and $5,000 per child.
• Death and injury. $1,500,000 for a person who died, plus $500,000 per surviving spouse and per eligible dependent; $20,000 for a physical injury.
• Businesses. Average 2023–2024 net income multiplied by a set interruption period that depends on the type of business and damage, reduced by business-interruption insurance.
• Direct Claim Premium. An added amount for using the program, for example $200,000 for an owner-occupant whose primary home was destroyed, $50,000 per adult tenant of a destroyed home, and $5,000,000 per person who died.

Non-economic damages, the Direct Claim Premium and the attorney add-on are not reduced by insurance. If you are represented when you file, the program page says SCE adds 20% of net damages (excluding the premium) toward legal fees; LAist reported a 10% figure in November 2025, so confirm the current number in your own offer.

If you disagree with a Fast Pay offer, you can request a Detailed Review with more documentation. LAist reported the request must be made within 14 days of the offer. The Protocol estimates a decision within nine months of complete documents, keeps non-economic and premium amounts the same, and honors the Fast Pay amount if the review comes out lower. Beyond that, offers are not negotiable.

How does insurance affect an offer?

This is where many families are surprised. Both CalMatters and LAist reported that SCE subtracts your full insurance policy limits from the economic-loss part of the offer, whether or not your insurer has actually paid those limits. If your insurer has paid less than your limits, the gap does not come back to you through this program; you would have to pursue your insurer for it.

Your insurer's own right to be repaid (called subrogation) is separate. Insurers cannot file in the program, but they have their own lawsuits against SCE. LAist reported that SCE agreed to pay one undisclosed insurer 52 cents on the dollar. In August 2026, Judge Laura Seigle tentatively denied the insurers' motion to hold SCE strictly liable without a trial. For most homeowners, the practical point is simple: your insurer's case against SCE does not cover what your policy did not pay. Our guide to being underinsured after a wildfire explains that gap.

What does the release say?

Applying does not cost you anything legally. SCE says submitting a claim or receiving an offer does not waive your rights. The release only takes effect if you accept an offer and sign. But when you sign, it is final.

According to the Protocol, acceptance requires a full release of "all past and future claims against SCE and related persons and entities" related to the Eaton Fire, binding on your heirs and successors. SCE's FAQ, as quoted by Settlement Insight, states, "This includes waiving future claims that may arise." Where several people own a property, each one must sign a notarized release. CalMatters reported survivors' concern that signing also ends any later fire-related health claim against SCE.

How the program fits with the lawsuit and the state Wildfire Fund

The Eaton Fire lawsuits against SCE are coordinated in Los Angeles Superior Court. In August 2026 the court declined to decide SCE's liability on the papers and signaled that responsibility will be decided by a jury; our plain-language summary of that ruling explains what it means. You can apply to the program and stay in the lawsuit while you evaluate an offer. Accepting ends your claims against SCE.

The money behind both paths is shaped by state law. SCE said the first $1 billion would come from its customer-funded insurance, with the state Wildfire Fund after that, CalMatters reported. The California Earthquake Authority, which administers the fund, determined in September 2025 that SCE qualified for payments for Eaton Fire claims, E&E News reported.

Senate Bill 254, signed September 19, 2025 (Chapter 119, Statutes of 2025), added an $18 billion continuation account to the Wildfire Fund, split between an extended ratepayer charge and utility shareholder contributions, according to Nossaman's analysis and a Senate committee analysis. It also gives a utility a right of first refusal when an insurer tries to sell its subrogation claim, and it ordered studies of how wildfire costs should be shared. The CPUC's January 2026 report discussed possible changes to strict utility liability, and the Wildfire Fund Administrator's study followed in April 2026. None of this changes an individual survivor's existing claim today, but it is part of why the legal and financial landscape could shift.

What supporters and critics say

SCE says the program offers a fast, fee-free way to be paid, and its October 2026 figures show nearly 80% of offers accepted and about 2% declined. LAist reported that lawyers it interviewed said the program will likely pay less than litigation but may suit uninsured or badly underinsured survivors who cannot wait for a lawsuit to end. An Edison spokesperson told LAist, "The program is structured to minimize financial impact to the company while providing meaningful support to those affected."

The Eaton Fire Survivors Network has criticized the program. Its executive director, Joy Chen, told CalMatters, "We're trying to prevent a situation where the most vulnerable people take way less than they should be getting." Criticisms include the insurance offset, the eligibility maps, the housing amounts, and lower amounts for children. LAist also reported a RAND analysis estimating that about 20% of values from SCE's valuation model could be off by more than $200 per square foot.

Should I take the Edison settlement offer? A framework

We cannot tell you the answer on a web page, but these are the questions that usually decide it:

1. What is your full loss? Add the cost to rebuild, belongings, living expenses, lost income and the human cost. Then subtract what insurance actually paid, not your limits. The program subtracts limits.
2. How large is the gap between the offer and that loss? A small gap and an urgent need may favor the program. A large gap may favor waiting.
3. Do you have health concerns? The release covers future claims. If you or a child has symptoms from smoke or ash, get medical advice first. Our smoke and ash damage guide covers testing.
4. Can you wait? A jury trial and appeals can take years. The program pays within weeks of signing.
5. Do public benefits, taxes or co-owners complicate it? LAist reported advice to ask about a special needs trust if you receive public assistance. Every co-owner must sign.
6. Watch the clocks. Claims close November 30, 2026; each offer lapses after 90 days. Lawsuit deadlines run separately: generally January 2027 for injury and death claims and January 2028 for property claims.

Renters face different numbers; see renters' rights after a wildfire. To understand how group cases work, read class action vs. mass tort.

How LaCour can help

We represent people affected by the Eaton Fire, GKN and Lineage events. We will read an SCE offer with you, compare it to what your claim could be worth in the Eaton Fire case, and tell you plainly if taking it makes sense. Our lawyers speak Spanish. A free, confidential review costs nothing, and there is no fee unless there is a recovery.

Frequently asked questions

This guide is general information about California and federal law and about public records as of its date. It is not legal advice, and reading it or contacting us does not create an attorney–client relationship. Allegations in lawsuits are claims, not findings. Prior results do not guarantee a similar outcome. Attorney advertising.