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When will victims of the California fires see insurance payments?
Fox News Contributor Mary Katharine Ham and Zuma Global President Heather Zumarraga discuss California’s lack of resources to combat the “heartbreaking” wildfires on ‘Making Money.’
Experts say it’s incredibly difficult to estimate a timeline for when California wildfire victims will receive their insurance payments, noting it could be anywhere from a few weeks to several years.
Candise Shanbron, managing partner at property damage law firm Cernitz Law, told FOX Business that no one knows how long it will be before residents affected by the fires, which broke out this week in Los Angeles, see insurance payments. .
Brian Braswell, senior vice president at independent insurance brokerage The Daniel and Henry Co., said the timing depends, in part, on the insurance company, the coverage in place and the terms of the policy, as well as the volume of claims.
“Businesses are inundated with claims. Imagine you have 100 claims a month and now you have a million,” Braswell said.
Firefighters continue to battle wind and fire as homes burn in Malibu along Pacific Coast Highway near Carbon Canyon Road in the Palisades Fire on January 8, 2025. (David Crane/MediaNews Group/Los Angeles Daily News via Getty Images/Getty Images)
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Aside from the large volume of claims being handled, especially during a catastrophic event, Braswell said the complexity of the claim could also influence the speed of payment.
The efficiency of the insurance company’s claims processing system will also be a factor, he added.
A firefighter battles the Palisades Fire as it burns homes on Pacific Coast Highway amid a powerful wind storm on January 8, 2025 in Los Angeles, California. (Apu Gomes/Getty Images/Getty Images)
Braswell estimated it could be as little as a few weeks or extend to years. However, “adjusters are motivated to pay or close claims to get them off their desk and onto the next thing,” Braswell added.
Shanbron said the process looks different for everyone, even if they face the same harm.
For example, insurance companies “constantly analyze financial data and calculate how much money they need to have in reserves at any given time to reinvest those funds and pay claims,” Shanbron said.
According to Shanbron, this is why certain homeowners will be paid immediately, while others with exactly the same type of damage for the same loss might not receive payment for six months or even years.
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In some cases, “they could just outright deny the claim, hoping nothing ever comes of it, or deny the claim knowing they will end up being sued, but at least deny it and wait for the lawsuit to be resolved.” showing up will give them more time than they need,” Shanbron said.
Plumes of smoke are seen as a wildfire burns in Pacific Palisades, California, on January 7, 2025. (DAVID SWANSON/AFP via Getty Images/Getty Images)
But given both the nature of fire losses and the demographics of the area affected by the fires, Shanbron doesn’t believe most insurance companies will “drag.”
Still, Braswell said victims shouldn’t wait to review their insurance policy or ask questions and get a check, as “California’s insurance market is already problematic and about to get much worse.”
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Anthony Lopez, CEO of Your Insurance Attorney, told FOX Business that while the timeline may be affected by several challenges, there are proactive steps victims can take to “potentially offset the delay.” They include contacting your insurance provider immediately after damage occurs, providing detailed documentation of the home or business over time, stamped before and after photographs, and an estimate from a general contractor outlining repair or replacement costs. Lopez said.
