Los Angeles wildfire victims receive over $4 billion in insurance payouts

Insurance companies have disbursed over $4 billion in claims to victims of the California wildfires, as per a new online tracker launched by the state's insurance authority. The California Department of Insurance introduced this tool last Thursday, describing it as the "first-ever public consumer claims tracker to monitor claim amounts, payments, and provide transparency."

CoreLogic's recent analysis estimated insured losses from the Palisades Fire and Eaton Fire to be between $35 billion and $45 billion. These fires, which affected Pacific Palisades and Altadena, CA, respectively, are now considered the largest insurance industry loss event of their kind in history.

As of Monday, the tracker showed that $4.2 billion in claims had been paid mainly for home, business, and living expenses related to these fires. The Palisades and Eaton fires resulted in 29 fatalities and burned over 37,000 acres during January.

The tracker indicated that 31,210 claims have been filed so far. Of these, 14,417 have been partially paid under state laws requiring advance payments for temporary housing and personal items.

California Insurance Commissioner Ricardo Lara emphasized the importance of tracking claims amidst misinformation about the insurance market post-wildfires. "All eyes are on the insurance companies, and so are mine," he stated.

These initial payouts do not cover home rebuilding or debris removal costs. On January 23rd, Lara reminded insurers of their obligation to provide advance funds for replacing personal property without requiring an itemized claim.

Lara also imposed a one-year ban preventing insurers from canceling policies in areas affected by these fires. Data for the tracker is sourced directly from insurance carriers like FAIR Plan.

"I expect insurance companies...to continue providing advance payments," Lara added. The amount of paid claims is expected to increase significantly as recovery efforts progress.

Insurance companies have begun assessing damages. Chubb estimated a payout of $1.5 billion in Los Angeles County wildfire-related claims. CEO Evan Greenberg commented on the tragedy while noting Chubb's net income exceeded $9.2 billion for 2024.

Chubb has publicly addressed its financial exposure in these wildfires first among insurers. Despite holding only a 2.27% share of California's homeowners market in 2023, Chubb has taken steps to assist policyholders affected by this disaster.

In comparison, State Farm led with a 19.9% market share followed by Farmers Insurance at 14.9%, with CSAA and Liberty Mutual each holding 6.5%.

Realtor.com is collaborating with REALTORS Relief Foundation (RRF) to raise funds supporting victims of these Southern California wildfires through urgent housing-related assistance.