Fighting Literal & Financial Fires
As of this writing, the Santa Ana winds are supposed to pick back up in Southern California. It is not supposed to be as bad as Tuesday, January 7th, but wind gusts could still get up to 60-80 miles per hour, which is a Category 1 on the hurricane scale.
We are still in it, but it sometimes feels like the rest of the world has moved on. In our 24 hour news cycle and 90 second Instagram reels (Yes, I know that Instagram has announced it will increase that video length to 3 minutes now, but still…), our attention is short.
Most of us probably have undiagnosed ADHD at this point. How can we not? I know I do.
For those of us in Southern California who are still in the middle of bracing for this windstorm or who have lost everything or even sustained some damage, this blog post is for you.
It’s not a comprehensive guide for your financial future, but it is what I know now, and I can always write an updated one later.
First of all, please take care of yourself.
Your physical and psychological safety comes first. So, if you need to stay with family, friends, a hotel, Airbnb (they’re offering a week’s free stay), or fly to another state where it feels safe, please do that. Even if that means you’re accruing some debts initially or drawing from your savings. As you probably know, human beings do not function well mentally if we do not feel safe physically. Psychological safety also means if you need mental support, get it. Here’s a list of therapists who are willing to give FREE therapy.
Next, call your insurance company.
Let them know you are safe but that your home was destroyed or damaged. Trigger “Loss of Use” and personal property claims. Ask about immediate access to funds for essentials and living expenses. Loss of Use coverage includes incidentals like clothing, toiletries and phone chargers. Share your situation with stores. Many places (including some high end skincare products like Goop and Odacite) are offering free or discounted products to fire victims.
Even if your home is intact, if there is any damage, please let insurance know. It is what insurance is for! For example, my house was not destroyed, which I am so grateful for, and yet, the wind on that first night broke our gate. We got an estimate of $8-$10K, depending on if we get a new gate or just fix the old one, and although there is definitely hesitation because so many people lost their homes completely, I have to remind myself that we’ve been paying insurance on this house for 12 years now, and we’ve hardly ever had to call them. Also, this is exactly what insurance takes care of…the high severity but low frequency occurrences, like 80-100 mile per hour winds breaking a gate.
My neighbor's giant oak tree uprooted in the wind storm on January 7th.
Please don’t let guilt dissuade you from calling your insurance company. Also, let them make the assessment. If they don’t think it will be covered, they will let you know. If you are allowed back home but some of your stuff is damaged, insurance may also give you an advance on renting furniture or household necessities such as cookware and towels.
If you are a renter, call your rental insurance company. It doesn’t cover the exterior structure (that should be under your landlord’s insurance), but it should cover any furniture and belongings of value inside the rental.
If you have business insurance (and you should if you have a business) and you have business interruption coverage, find out if you can receive that money.
Apply for Disaster Assistance with FEMA and/or SBA
If your home was completely destroyed, this is where FEMA steps in. Apply for FEMA grants. Many people have already received money! What insurance won’t cover, FEMA could. If your home is intact but you had to evacuate, your work/business was destroyed or compromised, then look into an SBA loan. They have low interest loans called Economic Injury Disaster Loans (EIDL) that can help you get back on your feet and pay for some of the bills.
At fema.gov, it says “the fastest way to apply is through DisasterAssistance.gov. You can also apply through the FEMA mobile app or by calling the FEMA Helpline at 800-621-3362.
Here are the types of available disaster loans through SBA:
Home Disaster Loans: Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
Business Physical Disaster Loans: Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.
Economic Injury Disaster Loans (EIDL): Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
Interest rates start as low as 4% for small businesses, 3.625% for nonprofits, and 2.563% for homeowners and renters. Payments are deferred for 12 months with no accrued interest. Applications must be submitted by March 10, 2025, for physical property damage and by October 8, 2025, for economic injury loans.
Call Up Your Creditors
If your home was destroyed, damaged or you need some breathing room to recover, call up your mortgage lender to ask for a forbearance. If your home is in the federally designated disaster area, like ours is, your mortgage company may already have you on file and prepared to give you the forbearance. The faster you do that, the quicker you can get that forbearance before your mortgage is due on February 1st.
Call up any other bills - utility companies, car loans, and even credit card companies to see if they can give some breathing room.
In Los Angeles County, property taxes are also due on February 1st. According to the Los Angeles County Assessor’s Office, “if your property has been damaged or destroyed by a calamity, such as an earthquake, landslide, or fire, and the loss exceeds $10,000 in current market value, you may qualify for reassessment. To be eligible, property owners must file Form ADS-820 with our office within 12 months from the date the damage or when destruction occurred.” You can also request a payment plan.
If you’ve already paid your property taxes, go ahead and fill out that form anyway, and you may get a refund. Also, if you just need more time to pay and not incur the penalty fee, you can request a penalty cancellation by completing the online Penalty Cancellation Request. (Please note that in the online request form, you must complete Step 2 and select the relevant California Revenue and Taxation Code Section 4985.2: Circumstances beyond the taxpayer's control and occurred notwithstanding the exercise of ordinary care in the absence of willful neglect.)
Taxes - Refunds & Relief
Tax season is coming up! Document and track every single loss, even if it’s beyond your insurance coverage limits. Work with your accountant to claim unreimbursed losses on your taxes. Also, at this time, the State of CA is offering extension of tax return due dates, relief of penalty and interest on payments and replacement copies of records that were lost.
Apply for grants
Entertainment Community Fund is offering grants (and other resources) for those in the entertainment industry. I’ve given money to this Fund in the past, and it’s helped so many people who aren’t able to work because of the wildfires. If you are not affected by the wildfires, this is a great fund to donate to. Your proceeds are tax deductible. At the link, there are a number of other funds for musicians, artists, theater and IATSE members. Here’s what they say they can help with:
Immediate Assistance: We’re providing emergency financial aid to entertainment professionals to help with essential needs like housing, food, and medical expenses.
Tailored Support: Each person’s situation is unique, and we’re here to assess your needs and provide personalized help.
Resources for Recovery: Our team is ready to connect you with services and information to help you take the next steps toward stability and recovery.
iFundWomen has also started a fire relief grant fund for women-led businesses affected by the fires. Click on the link or search #IFW4LA on Instagram.
Other grants for the creative community are compiled a list HERE.
Let me know if you have any other questions about your finances in this disaster.
And just a reminder…
In moments like these (whether it’s from the 2023 strikes, wars or wildfires), the world needs you more than ever. It needs your talent, your artistry, your skills, your kindness, your perspective, knowledge and love.
I need you during this time, and the world needs you.
With Love & Gratitude,
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