The California Department of Insurance (CDI) has released claims payment data showing that insurers have already paid out more than $4.2 billion in claims for damages caused by the Eaton and Palisades wildfires.
The data covers payments from admitted carriers, the California FAIR Plan, and surplus lines insurers.
Denni Ritter (pictured above), vice president of state government relations at the American Property Casualty Insurance Association (APCIA), said that insurers are actively assisting Californians affected by the wildfires.
“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,” Ritter said.
As of Jan. 27, there have been 31,210 claims filed related to the two wildfires, according to the CDI’s data. Ritter noted that while the claims payments are significant, the recovery process is ongoing and will take time.
“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,” Ritter said.
A recent report from Moody’s noted that the Palisades and Eaton wildfires in Los Angeles are nearly fully contained as of Jan. 28, according to the California Department of Forestry and Fire Protection. The wildfires have led to significant loss of life, extensive property damage and large-scale evacuations.
Risk modelers have estimated insured losses, including losses to the California FAIR Plan, of between $20 billion and $45 billion. A significant portion of these losses is expected to stem from homeowners’ coverage. The insured losses from the Palisades and Eaton wildfires are expected to be the highest in California’s history.
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