Fair Plan gets 4,400 insurance requirements from La County Wildfire – victims – Daily News

Expected claims for payments to Los Angeles County Wildfire victims appear to have exceeded $ 900 million for the State Insurance Company for the last resort so that it can utilize “reinsurance” payments from back-up providers.

In a statement published on Thursday, January 30, California’s Fair plan reported more than 4,400 demands from Victims of Palisades and Eaton fires in the past three weeks.

“The fair plan is access to reinsurance to help pay requirements,” the statement states.

In previous statements, Fair Plan said it can only utilize reinsurance – essentially insurance for insurance companies – when it first pays its first $ 900 million in claims.

See also: Why all homeowners in California could be on the hook for La County Wildfire costs

The damage caused by the wind -powered fire storms in Pacific Palisades, Malibu, Topanga and Altadena Quarter consumed more than 37,000 hectares, destroying nearly 16,000 structures and killing 29 people.

Economics for the plan for “fair access to insurance requirements” has been under control since the devastating fires broke out on January 7. If the state -created insurance pool runs out of money it can invoke payment mechanisms can affect virtually all insured home and building owner in the state.

Fair plan provides coverage for homes and businesses that cannot get policies in the open market. Consumers can only get fire coverage through the plan, often at a higher price. In addition, owners must seek separate “wrapped” policies for responsibility, theft and other types of coverage.

Still, Fair Plan has only enough cash to cover a small fraction of its total exposure of $ 458 billion. Last March, Fair Plan told President Victoria Roach that the provider had only $ 700 million in cash available.

If it runs out of money, state legislation allows the fair plan to pass on the hat among more than 100 fully licensed insurance companies in the state, provided that insurance commissioner Ricardo Lara approves such a “assessment.”

These insurance companies, in turn, can try to pass on their share of the assessment to their policyholders as a “supplementary fee.”

See also: Anguished homeowners are struggling to keep their insurance

However, it is not yet clear whether the fair plan should invoke these payment mechanisms.

“We have not yet asked California’s Insurance Commissioner for an assessment in response to the fires of Southern California,” the statement states.

The last time Fair Plan released an assessment was in 1994.

Meanwhile, Fair Plan has been staffed to meet the crush of phone calls and requirements for adjusting requirements it receives.

In previous statements, the plan said it ensures that approx. 22% of the structures of the Palisades fire zone and approx. 12% of the structures of Eaton Four Zone. That’s a potential exposure a total of more than $ 4 billion in Palisades four and over $ 775 million for Eaton four.

From Tuesday, January 28, Fair Plan had received over 3,200 claims for damage from Pacific Palisades four and over 1,200 claims for damage from Eaton Fire, the statement states.

Fair Plan has awarded about 250 desktop sub -subsequently and field adjustments to work on their requirements and hires temporary staff, including customer service staff. Independent adjustment companies are helping with injury inspections, and third -party disaster sub -subsequently and adjustments help “meet the rising demand.”

Further information on the submission of requirements is available at www.cfpnet.com .