When Will Cali Fire Victims See Insurance Payments?
Fox News anchor Mary Kathryn Hamm and Zuma Global President Heather Zumaragga discuss California’s lack of resources to ‘find money’ to fight the ‘heartbreaking’ wildfires.
Experts say it’s incredibly difficult to gauge how long it will take victims of the California wildfires to receive insurance payouts, saying it could range from a few weeks to several years.
Candice Shanbron, managing partner at property damage law firm Zernitz Law, told Fox Business that no one knows how long it will be before they see insurance payouts for residents affected by fires around Los Angeles this week.
Brian Braswell, senior vice president of Daniel & Henry Co., an independent insurance broker, said the timing depends in part on the insurance company, the coverage and policy terms, as well as the number of claims.
“Companies are inundated with claims. Think you had 100 claims a month and now you have a million,” Braswell said.
In the year Firefighters continue to battle high winds and flames as homes are engulfed in flames along Pacific Coast Highway near Carbon Canyon Road in Malibu, Jan. 8, 2025. (David Crane/Media News Group/Los Angeles Daily News via Getty Images/Getty Images)
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In addition to the volume of claims being processed, especially in the event of an accident, Braswell said the complexity of the claim affects the speed of payment.
He pointed out that the efficiency of the insurance company’s claims processing system is also a factor.
In the year A firefighter battles the Palisades Fire as it burns homes along Pacific Coast Highway amid a powerful storm, January 8, 2025 in Los Angeles, California. (Apu Gomes/Getty Images/Getty Images)
Braswell estimated it could be extended for a few weeks or years. However, “adjusters are motivated to pay/close claims to get them off their desks and move on to the next one,” Braswell added.
Shanbron said the process looks different for everyone, even if they have the same injury.
For example, insurance companies constantly analyze financial data and calculate how much cash they need to have in reserve at any given time to reinvest their funds and pay claims.
According to Shanbron, that’s the reason why some homeowners get paid right away, while others with similar losses may not get paid for six months or years.
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In some cases, “they may deny the claim knowing that they will be sued or denied in the hope that nothing will come of it, but at least they are waiting for the denial and the lawsuit.” It buys them the extra time they need to register,” Shanbron said.
Smoke is seen as a brush fire burns in Pacific Palisades, California on January 7, 2025. (David Swanson/AFP via Getty Images/Getty Images)
But given both the nature of the fires and the demographics of the area affected by the fires, Shanbron doesn’t believe most insurance companies will “drag their feet.”
Still, Braswell said victims shouldn’t wait to see their insurance policies or ask questions and get a check because “California’s insurance market is already in trouble, and it’s only going to get worse.”
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Anthony Lopez, CEO of Your Insurance Lawyer, told FOX Business that while the deadline can affect many challenges, there are proactive steps victims can take “that can minimize delays.” They include contacting your insurer immediately after the damage, documenting the details of the home or business over time, printing before and after photos and providing a general contractor estimate detailing repair or replacement costs, Lopez said.
