A new online tool that tracks insurance payouts stemming from wildfires that devastated parts of Los Angeles County shows more than $4 billion has been paid so far, largely to replace lost personal items and cover living expenses.
California Insurance Commissioner Ricardo Lara announced the new tracker Thursday.
Lara’s office said insurance companies have made the quick disbursements since the fires largely because of laws implemented after previous wildfires that help people find housing and replace personal items.
Monetary amounts shown on the tracker are expected to grow in the coming weeks and months as more people begin the claims process.
CoreLogic, a property data and analytics firm, estimates the Palisades and Eaton fires will result in $35 billion to $45 billion in insurance payouts to homeowners and businesses.
“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. All eyes are on the insurance companies, and so are mine,” Lara said in a news release.
The numbers show that as of Jan. 27, 31,210 claims have been filed, with nearly half of those already partially paid under the laws requiring advance payments to speed recovery.
The bulk of unpaid claims are related to property damage and debris removal, Lara’s office said.
State law requires certain upfront payments by request. Insurance companies are required to provide funds for replacing personal property in an amount representing 30% of the policy’s dwelling limit, up to $250,000, without requiring the policyholder to file an itemized claim. They are also required to provide advance payment of no less than four months of living expenses.
Lara said he expects insurance companies “to continue providing advance payments that are essential for getting survivors back on their feet as quickly as possible.” After reports that some people were not getting upfront payments, Lara put out a bulletin reminding insurance companies of their obligations under the laws.
Michael Soller, a spokesperson for the insurance commissioner, said data were collected expressly for the purpose of promoting understanding among consumers that claims are being paid immediately and keeping insurance companies accountable.
“You’ve probably seen estimates out there. But this is the first real number of what’s been paid out to date to consumers,” Soller said.
The data displayed on the tracker were collected directly from insurance companies, including California’s Fair Plan, the state’s insurer of last resort, and represents most residential and commercial property insurers. The insurance commissioner’s office expects to update the data every few weeks.
