Most of the claims payments made so far are to cover contents and living expenses. (Credit: Andrey Popov/Adobe Stock)
Wildfire recovery efforts are moving along quickly, with insurers having paid $4.2 billion in claims so far, according to claims payment data released by the California Department of Insurance yesterday.
The department also announced the creation of a public consumer claims tracking system that shows number of claims filed, number of claims partially paid and the amount of claims paid to date. It includes data from admitted carriers, the California FAIR Plan and surplus lines insurers.
“With so much misinformation and speculation about our insurance market after the Southern California wildfires, it is critical for the public to track claims and monitor payouts,” Ricardo Lara, the state’s insurance commissioner, said in a statement. “All eyes are on the insurance companies, and so are mine.”
According to the department of insurance, 31,210 insurance claims have been filed for home, business, living expenses and other disaster-related needs so far. Of those, 14,417 claims have been partially paid.
Lara issued a bulletin on Jan. 23 ordering insurance companies to provide advance funds to replace policyholders’ personal property and contents. Insurers must pay out 30% of the policy’s dwelling limit, up to $250,000, without requiring the policyholder to file an itemized claim. They must also send an advance payment of at least four months of living expenses.
“I expect insurance companies, including the FAIR Plan, to continue providing advance payments that are essential for getting survivors back on their feet as quickly as possible,” Lara said in the statement.
Most of the as-yet unpaid claims include property damage and debris removal, which will be paid out as rebuilding begins.
Denni Ritter, vice president for state government relations with the American Property Casualty Insurance Association, said in a statement the data is proof of insurers’ commitment to helping Californians recover.
“From the onset of the wildfires, insurers have been on the frontlines assisting customers with disaster recovery — proactively reaching out to impacted customers, setting up help centers and deploying catastrophe teams to help residents get claims started and secure emergency housing, food, clothing and other resources in their time of need,” he said. “This is just a start. We understand the road to recovery will be long, and insurers will work alongside residents and businesses every step of the way to help Southern Californians rebuild.”
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