The South California wildfire events, including the Hill and Woolsey fires, have made history in terms of damage done.

According to Insurance Commissioner Ricardo Lara, the Woolsey, Hill, and Camp fires caused a combined $12 billion in wildfire damage to California. This figure is based on insurance claims for fire damage.

“While last year’s tragic wildfires turned thousands of people’s lives upside down, insurance is helping to rebuild and recover,” Lara said in a statement. “To the residents of Paradise, Butte, Malibu, Los Angeles and the other communities who have lost so much—we stand with you on the long road to recovery.”

Much of the damage from the November 2018 wildfires can be attributed to the Camp Fire. The northern California wildfire killed 85 people and destroyed 19,000 structures. Together with the Woosley and Hill south California wildfire incidences, the wildfires claim the title of the most expensive in the Golden State’s history.

“We have a lot to do to get ready for the next fire season,” Commissioner Lara said. “The Department of Insurance is committed to working tirelessly with our fellow agencies to ensure that we have a system in place that protects wildfire survivors, prevents wildfires, and preserves our state.”

Homeowners and Insurance Claims

Homeowners who were devastated by any south California wildfire may file a home insurance claims about their losses. Depending on individual coverage, homeowners may be compensated for house damage, lost structures, and other losses.

Even if homeowners were not directly impacted by the California wildfires, they may be seeing indirect effects. The price and availability of homeowners insurance is changing to reflect recently reevaluated fire risks. Homeowners may find that their insurance is more expensive with the reassessed risk levels. Others may be denied coverage completely when they attempt to renew their coverage.

To help homeowners when they are suddenly denied homeowners insurance coverage, California has the “FAIR” plan.

The FAIR Plan is not a state agency and is not funded by taxpayers. The private insurance provider was created in July 1968 following brush fires and riots in the 1960s. The FAIR property insurance plan offers “last resort” insurance coverage and is only recommended if homeowners are unable to get any other coverage due to issues beyond their control.

According to the plan’s website, it is recommended that FAIR Plan policyholders shop for a different insurer at least once a year “in order to search for coverage that is more comprehensive than that offered by the FAIR Plan”. Unlike other plans, the FAIR Plan does not estimate the value of property, rebuilding costs, and other expenses that may be thoroughly investigated by other insurance providers.

In addition to insurance changes caused by the California fires, the lingering damage is causing problems with utilities. The largest utility in California, Pacific Gas & Electric Corp., had to file bankruptcy in January due to the company being forced to pay billions in liability costs, in addition to facing Camp Fire lawsuits. These liabilities are made possible in part by California law that allows utilities to be found financially liable for wildfire damages, even if they were not negligent.

This article is not legal advice. It is presented
for informational purposes only.