California Insurers Pay Over $4.2 Billion for Eaton and Palisades Wildfires
The California Department of Insurance (CDI) has reported that insurers have already paid more than $4.2 billion in claims for damages caused by the Eaton and Palisades wildfires.
This includes payments from admitted carriers, the California FAIR Plan, and surplus lines insurers.
Denni Ritter, Vice President of State Government Relations at the American Property Casualty Insurance Association (APCIA), emphasized that insurers have been actively supporting Californians affected by the wildfires. “Insurers have been on the frontlines, helping with disaster recovery by reaching out to impacted customers, setting up help centers, and providing emergency housing, food, clothing, and other resources,” Ritter said.
As of January 27, a total of 31,210 claims have been filed for the two wildfires, according to CDI data. Ritter mentioned that while the claims payments are substantial, recovery will take time and insurers will continue to assist residents and businesses throughout the process.
A report from Moody’s states that the Eaton and Palisades wildfires in Los Angeles were nearly fully contained as of January 28, according to the California Department of Forestry and Fire Protection. The fires caused significant loss of life, property damage, and large-scale evacuations.
Risk modelers estimate that the total insured losses, including those covered by the California FAIR Plan, could range from $20 billion to $45 billion. A large part of these losses is expected to come from homeowners’ insurance. The insured losses from the Eaton and Palisades wildfires are projected to be the highest in California’s history.