Los Angeles Wildfire Claims — $4.2 Billion So Far

The California Department of Insurance says as of January 30th insurers have paid $4.2 billion in claims from the wildfires that hit the Los Angeles area. Insurance Commissioner Ricardo Lara said 31,200 claims have been filed and 14,417 of them have received partial payments.

California’s FAIR Plan has received 4,400 claims. Of those claims, 3,200 are connected to the Palisades Fire and 1,200 are from the Eaton fire. The FAIR Plan exposure from these fires is about $4.8 billion.

The Palisades Fire exposure is $4 billion and the Eaton Fire is $775 million.

California law requires advance payments to help victims recover more quickly.

On January 23rd, Lara said the payments have been capped at 30% of the policy limit up to $250,000. Insurers are also required to pay victims at least four months in living expenses. This has to be paid in advance.

One of the big worries in California these days is misinformation. The California Department of Insurance dashboard compiles information from insurers working in the state — including California’s FAIR Plan. Lara recommends Californians to check into the dashboard so they get accurate information.

He said insurers transparency is critical and a high priority for his department. “All eyes are on the insurance companies, and so are mine,” Lara said. “I want consumers to know that we are closely monitoring the entire claims process to ensure they are protected.”

Source link: Insurance Business America — https://bit.ly/40MXaTy