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<\/div>\nState Farm has reported paying out $2.5 billion for the Los Angeles wildfires in January, more than double what the carrier reported paying out weeks earlier.<\/p>\n
\u201cAs of March 28, we\u2019ve received more than 12,300 total claims related to the fires and have paid over $2.5 billion to our customers,\u201d State Farm said in a statement on the fires.<\/p>\n
State Farm reported more than $1 billion paid out<\/a> to customers earlier in March.<\/p>\n The latest figures from the California Department of Insurance updated on March 5 show insurance companies paid out more than $12 billion for losses from the two biggest of the Los Angeles-area wildfires that swept through the region and destroyed tens of thousands of homes in January.<\/p>\n The money paid out in the first eight weeks was likely related to rapid payments for additional living expenses and contents coverages, according to the CDI.<\/p>\n \u201cWe are now in the phase of the recovery where claims and losses need time to mature as rebuilding begins,\u201d a CDI spokesperson said in an email reply to a request for an update on the losses from the fires. \u201cWe will be collecting additional data and updating the claims tracker information, as well as providing additional information, in the next several weeks to few months.\u201d<\/p>\n The L.A. wildfires in January were driven by strong Santa Ana winds that produced hurricane-force gusts, causing numerous fires to break out at once. Most of the damage was from the two largest fires: the Eaton Fire in Altadena, which destroyed more than 9,400 structures, and the Palisades Fire in Pacific Palisades, which destroyed 6,937 structures.<\/p>\n The CDI\u2019s figures from the fires show:<\/p>\n Early estimates had put insured losses at $8 billion for the Eaton and Palisades fire to $40 billion for all five fires that burned around the same time in the region at one point.<\/p>\n Bloomington, Illinois-based State Farm is California\u2019s largest homeowners insurer. Following State Farm, the state\u2019s biggest homeowners insurers are Farmers Insurance Group, Liberty Mutual Insurance Companies, CSAA Insurance Group, Mercury Insurance Group, Allstate Insurance Group, Auto Club Enterprises, USAA Group, and Travelers. Several of those carriers have so far reported payouts in excess of $1 billion.<\/p>\n So far, State Farm is the first carrier to requested a rate increase related to the fires. The carrier has asked for a 22% rate increase, in part due to losses from the L.A. wildfires.<\/p>\n California Insurance Commissioner Ricardo Lara provisionally approved the request<\/a> for a 22% interim homeowners insurance rate hike, but the approval depends on whether the company can justify the rate increase with data during a public hearing scheduled for April 8.<\/p>\n If State Farm\u2019s rate increases stand they would be effective June 1, and include 22% for homeowners, 15% for renters, 15% for condominium, and 38% for rental dwelling. State Farm in May 2023 stopped writing new policies in California and non-renewed thousands of existing policies.<\/p>\n Lara at first opted not to approve the rate request<\/a> from State Farm, instead calling a meeting with the carrier to get some answers about its financial situation.<\/p>\n State Farm said at the time of its request that the increases are needed to align cost and risk, and enable State Farm to rebuild capital. Over the last nine years, the lack of alignment has meant that for every $1 collected in premium, the carrier has spent $1.26, resulting in more $5 billion in cumulative underwriting losses, according to State Farm.<\/p>\n During a Feb. 26 meeting, State Farm informed Lara and the CDI that while it can cover claims from L.A. wildfires, the disaster worsened its financial condition.<\/p>\n Top photo: 2025 Pacific Palisades Fire in Los Angeles. Source: CalFire.<\/em><\/p>\n Topics<\/span> Catastrophe<\/a> Natural Disasters<\/a> Wildfire<\/a> Louisiana<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n\n