Insurers Pay Nearly $7 Billion for Los Angeles County Wildfire Claims
Friday, March 7th, 2025 Catastrophe Legislation & Regulation Property Risk ManagementInsurance companies have paid nearly $7 billion toward claims related to the Los Angeles County wildfires, according to data from the California Department of Insurance. A total of 33,717 claims have been filed, covering homes, businesses, living expenses, and vehicles. Of these, 19,854 claims have been partially paid, and 5,597 auto claims have resulted in $73 million in payouts so far.
California Insurance Commissioner Ricardo Lara has issued a bulletin mandating advance payments for personal property and additional living expenses for total-loss claims. Under existing state law, insurers must provide at least 30% of a policy’s dwelling limit—up to $250,000—without requiring an itemized inventory. Additionally, insurers must advance at least four months of living expenses to affected homeowners.
To further support policyholders, Commissioner Lara expanded a moratorium preventing insurance cancellations for homeowners in areas impacted by the Hughes Fire. This follows a previous order extending protections to residents affected by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires. The moratorium ensures that affected homeowners retain coverage for at least one year, even if they did not suffer direct property loss.
