The latest news from the California Insurance Commissioner;
Insurance Commissioner Ricardo Lara has announced the creation of a public consumer claims tracking system designed to provide essential data for consumers and the public, revealing that more than $4.2 billion has been paid out to wildfire survivors due to advance payment laws that he championed after previous wildfire catastrophes.
Insurance company payouts are immediately helping people find housing and replace personal items. The amounts will grow as people begin the claims process, which includes rebuilding and debris removal.
“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. I want consumers to know that we are closely monitoring the entire claims process to ensure they are protected,” said Commissioner Lara. “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.”
The Stats So Far Are;
- 14,417 claims partially paid under laws requiring advance payments to speed recovery. Commissioner Lara issued a Bulletin on January 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 (AB 3012, 2020), and an advance payment of no less than four months of living expenses (SB 872, 2020).
- The bulk of unpaid claims include property damage and debris removal, which will be paid when people begin the process of rebuilding and debris removal.
- $4,234,585,287 paid out to insurance policyholders, as of January 27, 2025.
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