Insurers Have Paid Nearly $7 billion in Claims Toward LA County Wildfires

There have been 33,717 claims filed and $6.9 billion paid as a result of the Los Angeles County wildfires, according to the California Department of Insurance’s LA County Wildfire Claims Tracker. The Department of Insurance is collecting data directly from insurance companies to show insurance companies’ progress toward paying claims from Southern California wildfires. 

Claims Issued So Far

So far, 19,854 claims have been partially paid. The claims data includes home, business, living expenses, and other disaster-related claims related to the Eaton and Palisades Fires, the department states. “This data includes immediate payments issued under laws requiring advance payments issued under laws requiring advance payments to speed recovery,” but does not include property rebuilding or debris removal which will grow as rebuilding gets underway. Additionally, 5,597 auto claims have been filed, with $73 million having been paid so far.

Commissioner’s Bulletin

On Jan. 23 of this year, Insurance Commissioner Ricardo Lara issued a bulletin ordering insurance companies to provide advance funds for replacing personal property or contents. The department states that once a state of emergency is declared and a property is determined to be a total loss, existing California insurance law requires certain advance payments to claimants, which include “Payment of Contents Without Inventory,” in which “existing law requires insurance companies to advance funds for replacing personal property or contents in an amount that is 30% of the policy’s dwelling limit, up to $250,000, without requiring the policyholder to file an itemized claim”; and “Additional Living Expense (ALE) Advance Payment,” in which “existing law requires insurers to provide their policyholders with an advance payment of no less than four months of living expenses.”

Expanded Moratorium

Commissioner Lara also recently expanded moratorium to protect consumers affected by the Hughes Fire by preventing homeowners insurance cancellations and non-renewals. “This moratorium order shields those within the perimeters or adjoining ZIP codes of the Hughes Fire in Los Angeles County for one year…[and is] in addition to Commissioner Lara’s moratorium orders in January which protect residents in and adjacent ZIP codes of the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires in Los Angeles County, regardless of whether they suffered direct property loss.”