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U.S. NEWS Tuesday 29 January 2019

Insurance claims from deadly California wildfires top $11.4B

SACRAMENTO, Calif. (AP) —
Insurance claims from Cali-
fornia's deadly November
2018 wildfires have topped
$11.4 billion, making the se-
ries of fires some of the most
expensive in state history,
officials said Monday.
The latest tally adds to
growing concerns about
the future availability of
home insurance in wildfire-
prone areas.
More than $8 billion of the
November 2018 losses stem
from the fire that leveled
the town of Paradise, killing
86 people and destroying
roughly 15,000 homes. The
other $3 billion in losses are
from two Southern Califor-
nia wildfires that ignited the
same week.
The numbers were expect-
ed to rise, though not dra-
matically, state Insurance
Commissioner Ricardo Lara
said. So far, total damage
for 2018 wildfires is close to
$12.4 billion. This Dec. 3, 2018, file photo shows homes leveled by the Camp Fire line the Ridgewood Mobile Home Park retirement community
"These are massive num- in Paradise, Calif.
bers for us," Lara said. Associated Press
California's wildfires are in-
creasingly destructive and insurance plan of last resort plans should still be widely related to deadly 2017 and After insurers pay out
the fire season is stretch- known as the "FAIR plan." available. 2018 wildfires. claims, they can try to get
ing longer due to climate "We want to make sure "California still has a com- California law makes utili- back the money from a util-
change. A series of 2017 that we're monitoring the petitive market, there are ties entirely liable for dam- ity if it is found at fault.
wildfires in Northern Califor- situation, and right now we other carriers moving into age from wildfires sparked Armand Feliciano, vice
nia's wine country and in don't feel this is an area we place to write new busi- by their equipment, re- president of the industry
parts of Southern California should be alarmed about," ness," said Nicole Mahrt- gardless of whether they group, said he hopes the
became the state's most he said. Ganley of the American are found to be negligent. bankruptcy process is fair
expensive in history at $11.8 Still, he said the worsening Property Casualty Insur- The bankruptcy would con- to people suffering losses
billion. fires put California "in un- ance Association, which solidate the victims' law- and to insurers.
It has already become charted territory." The insur- represents about 60 per- suits and could potentially Regardless of what hap-
harder for people in fire- ance department is begin- cent of the nation's prop- leave thousands of wildfire pens with PG&E, Califor-
prone areas to get or keep ning to collect information erty casualty insurance victims without compensa- nia's insurers are prepared
insurance, although Lara on non-renewed policies to market. tion. to pay out all the claims,
said the state is not at a assess patterns such as lo- Pacific Gas & Electric Corp., State investigators recently most of which were filed by
point where it's impossible cation, he said. California's largest utility, is found that PG&E equip- residential property owners,
for homeowners to find it. A Representatives from the preparing to file for bank- ment did not spark of one Lara said.
recent law requires insurers insurance industry acknowl- ruptcy as early as Tuesday. of the most destructive "We are confident that the
who do not renew policies edged that some insurers Company officials say the 2017 fires, but the cause insurers have the money to
to notify customers of other may stop doing business in utility cannot afford an es- of the Paradise wildfire has make sure that we make
options, including a pooled certain areas. But they said timated $30 billion in costs not yet been determined. people whole," Lara said.q