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California takes over insurance company after wildfires

On Behalf of | Dec 21, 2018 | Insurance Law

Regulators in California have taken over an insurance company that was unable to pay claims resulting from massive wildfires that destroyed more than 13,000 homes throughout the state. As a result, homeowner claims will now be paid by the California Insurance Guarantee Association. The largest fire in the state, which started on Nov. 8, almost completely destroyed the city of Paradise and many of the surrounding areas. There were also many losses in Ventura and Los Angeles County.

The insurance company is not expected to fight the takeover from the state. No other insurance companies who provided coverage for homeowners affected by the fire have reported insolvency as of the beginning of December. Not all damage has been assessed by insurers by this point, so it’s not clear whether this will change in the future. Regulators aim to ease the suffering of impacted residents whenever needed.

In 2017, wildfires in Northern California resulted in more than $11 billion in insurance claims. Many homeowners found themselves uninsured after the disaster, making it very difficult to rebuild their communities. As experts predict an increase in dangerous wildfires going forward, insurance companies are expected to raise their premiums and even decline policies for homeowners in particularly risky areas.

Victims of wildfires or other unfortunate circumstances who are having trouble with their insurance claims may benefit from seeking legal counsel. Unfortunately, many insurance companies will try to deny claims for a variety of reasons. It’s the responsibility of a lawyer to take action in these cases and get their clients the compensation they deserve.