California Insurance Commissioner Ricardo Lara said on Feb. 13 that more than $6.9 billion has been paid to survivors of the state’s devastating wildfires that hit the Los Angeles area last month.
The insurance payouts are helping individuals secure housing and replace their personal belongings immediately. Lara noted that the total amount will increase as people initiate the claims process, which includes rebuilding and debris removal. Further, another $73 million has been paid to policyholders for auto insurance claims related to the fires.
“With so much misinformation and speculation surrounding our insurance market after the Southern California wildfires, it is crucial for the public to track claims and monitor payouts. I want consumers to know that we are closely overseeing the entire claims process to ensure their protection,” Lara said. “I expect insurance companies, including the FAIR Plan, to continue providing essential advance payments to help survivors recover as quickly as possible.”
The commissioner released some facts and figures related to the wildfires. Among them, 33,717 insurance claims were filed for home, business, living expenses, and other disaster-related needs. Also, 19,854 claims were partially paid under laws requiring advance payments to speed up recovery.
Further, Lara issued a Bulletin on Jan. 23 ordering insurance companies to provide advance funds for replacing personal property or contents in an amount that is 30 percent of the policy’s dwelling limit, up to $250,000, without requiring the policyholder to file an itemized claim and an advance payment of no less than four months of living expenses. The bulk of unpaid claims include property damage, which will be paid when people begin the process of rebuilding and debris removal.
In addition, as mentioned, $6.94 billion has been paid out to insurance policyholders for residential and commercial claims, as of Feb. 5. Also, 5,597 auto insurance claims have been filed with $73 million paid out to insurance policyholders for auto insurance claims.
The data is from insurance companies, including the FAIR Plan, representing most admitted residential and commercial property insurers and surplus lines writers.