As Los Angeles County grapples with the devastation caused by the Palisades and Eaton fires, California Insurance Commissioner Ricardo Lara has taken decisive action to expedite insurance payouts and ensure wildfire survivors receive the financial support they need. With tens of thousands of claims already filed, Commissioner Lara’s latest Bulletin mandates insurers to provide advance payments on claims, reinforcing consumer protections established by California law.
Advance Payments to Accelerate Recovery
To speed up the claims process, Commissioner Lara has ordered insurance companies to provide:
- Advance payment for contents without inventory: insurers must pay at least 30% of a policy’s dwelling limit, up to $250,000, without requiring an itemized claim.
- Additional living expenses (ALE) advance payment: policyholders are entitled to at least four months of living expense payments upfront, including those covered under the California FAIR Plan.
While many insurers have stepped up and exceeded these legal requirements, reports indicate that some companies are lagging in compliance. Lara emphasized the importance of getting these payments out as quickly as possible, noting that many survivors rely on them for relocation, transportation, childcare, and other essentials.
Tracking Insurance Payouts in Real-Time
To promote transparency and ensure accountability, the California Department of Insurance has launched an online claims tracker that provides real-time data on insurance payments. As of January 30, 2025, key statistics include:
- 31,210 claims filed
- 14,417 claims partially paid
- $4.2 billion in claims paid to date
These numbers are expected to rise as more survivors file claims and additional payments are disbursed.
Consumer Protections Under California Law
Commissioner Lara’s proactive approach builds on legislative reforms enacted after the 2018 wildfires. Key protections for wildfire victims include:
- A minimum of 36 months to collect full replacement costs: policyholders have three years to claim full replacement costs, with six-month extensions available for good cause.
- Flexibility in rebuilding or relocating: survivors can receive full replacement cost benefits whether they rebuild or purchase a home elsewhere. Insurers cannot deduct the value of land at the new location.
- Combining structure coverages: policyholders can pool payouts for their primary dwelling and other structures if rebuilding costs exceed their primary dwelling limits.
- Two automatic policy renewals: insurers must offer at least two renewals post-loss (24 months minimum) to ensure continued coverage during the recovery process.
Supporting Wildfire Survivors Through Workshops and Resources
To further assist affected homeowners and business owners, Commissioner Lara’s office is hosting free insurance support workshops on January 25-26 in Pasadena. Survivors can meet with Department of Insurance experts to understand their policies, navigate claims, and access recovery resources. Additional experts are stationed at Disaster Recovery Centers to provide in-person assistance.
Ensuring Insurance Companies Follow Through
With estimated insurance payouts from the Palisades and Eaton fires projected between $35 billion and $45 billion, Commissioner Lara stressed the importance of continued scrutiny and compliance from insurers. “With so much misinformation and speculation about our insurance market, it is critical for the public to track claims and monitor payouts. All eyes are on the insurance companies, and so are mine,” he stated.
The Department of Insurance is committed to ensuring wildfire survivors receive the payments they are entitled to under the law. Policyholders who encounter delays or issues with their claims are encouraged to contact the Department at 800-927-4357 or visit the Department’s website to file a complaint.
As Los Angeles County moves toward recovery, insurance policies and consumer protections are key to supporting wildfire survivors as they rebuild their lives.