Tracking Los Angeles Wildfire Insurance Payments: More Than $4 Billion in Claims Paid Out to Victims

Insurance companies so far have paid out more than $4 billion in claims to the victims of the devastating California wildfires, according to a new online tracker unveiled by the state’s insurance authority. 

The California Department of Insurance launched the tracking tool last Thursday, touting it as the “first-ever public consumer claims tracker to monitor claim amounts, payments, and provide transparency,” according to a press release.

A recent analysis from CoreLogic estimated insured losses from the Palisades Fire, which incinerated the wealthy, star-studded enclave Pacific Palisades—and the Eaton Fire, which partially destroyed Altadena, CA, to range between $35 billion and $45 billion. 

That would make the January wildfires the largest insurance industry loss event of its kind in history, dwarfing the $11.5 billion in insured losses stemming from the 2018 Camp Fire in Northern California. 

As of Monday, the tracker revealed that $4.2 billion in claims has been paid to date, mostly to cover home, business, and living expenses related to the deadly Palisades and Eaton fires, which killed 29 people and scorched through more than 37,000 acres during three weeks in January.

The tracker, last updated Thursday, indicates that 31,210 claims have been filed so far, of which 14,417 have been partially paid under state laws requiring advance payments to speed up recovery by allowing survivors to pay for temporary housing and personal items. 

“With so much misinformation and speculation about our insurance market after the Southern California wildfires, it is critical for the public to track claims and monitor payouts,” California Insurance Commissioner Ricardo Lara said in a statement.

“All eyes are on the insurance companies, and so are mine,” he continued. “I want consumers to know that we are closely monitoring the entire claims process to ensure they are protected.“

These initial payouts do not include funds to be used toward home rebuilding or debris removal. 

On Jan. 23, Lara issued a bulletin, reminding insurance companies that they were on the hook to provide advance funds for replacing survivors’ personal property or the content of their homes in the amount that is 30% of the policy’s dwelling limit, up to $250,000, without requiring the policyholder to file an itemized claim, plus an advance payment of no less than four months of living expenses. 

At the height of the natural disaster in Southern California last month, Lara imposed a one-year ban barring insurers from canceling policies in areas impacted by the Palisades and Eaton fires.

The data shown on the tracker is being collected directly from insurance carriers, including California’s insurer of last resort, FAIR Plan.

“I expect insurance companies, including the FAIR Plan, to continue providing advance payments that are essential for getting survivors back on their feet as quickly as possible,” Lara said.

The amount of paid claims is expected to grow exponentially as the colossal recovery and rebuilding process in and around Los Angeles picks up the pace in coming weeks and months. 

Insurance companies counting losses

Insurance companies have already begun tallying up the damages.

Last Wednesday, Chubb, the world’s leading property and casualty insurer, estimated that it will have to pay out $1.5 billion in Los Angeles County wildfire-rated claims, according to the Los Angeles Times. 

“The California wildfire disaster is a terrible tragedy that is still unfolding. Our colleagues have been on the ground from the beginning, endeavoring to assist our policyholders who have lost property, been displaced from their homes and businesses, and had their lives severely disrupted,” said CEO Evan Greenberg in a statement accompanying the firm’s fourth-quarter earnings report.

At the same time, Greenberg said that Chubb had “the best” year in the company’s history, with a net income of more than $9.2 billion for 2024.

Chubb has emerged as the first insurance provider to publicly comment on the scope of its financial exposure in the West Coast wildfires.

It is noteworthy that the American-Swiss company’s share of the California homeowners market was just 2.27% in 2023, according to analysis by JP Morgan.

For comparison, State Farm had by far the largest market share with 19.9%, followed by Farmers Insurance with 14.9%, with CSAA and Liberty Mutual sharing the third spot with 6.5% each.

Realtor.com is partnering with the REALTORS® Relief Foundation (RRF) to raise funds to support victims of the January 2025 Southern California wildfires. The REALTORS® Relief Foundation provides urgent housing-related assistance to homeowners impacted by disasters.