California Allows Out-of-State Insurance Adjusters to Help With LA Wildfire Recovery

Destruction caused by the Palisades fire near Los Angeles, Calif., on Jan. 9, 2024. John Fredricks/The Epoch Times

California Insurance Commissioner Ricardo Lara on Jan. 13 declared an emergency for Los Angeles and Ventura counties, aiming to speed up wildfire-related insurance claims by permitting insurance companies to use out-of-state adjusters.

The emergency declaration authorizes insurers and licensed insurance adjusters “to be able to utilize nonlicensed adjusters” to expedite wildfire-related claims if certain requirements are met.

The requirements include that the nonlicensed adjuster be overseen by “a qualified licensed adjuster, qualified manager, or insurer authorized to do business in California,” and the latter “may be held liable and may be subject to civil penalties for any actions associated with this emergency situation by a nonlicensed adjuster” that violate state law.

The declaration also requires that all claims adjusters, whether California-licensed or not, “must be properly trained” on all laws relating to property and casualty insurance claims handling.

“Claims must be paid fairly, quickly, and completely to speed the recovery,” said Lara in a press release. “My emergency declaration will help wildfire survivors so they are not being forced to wait for extended periods of time before receiving their benefits.”

Several major fires continue to rage in the Los Angeles area. The Palisades fire burning in the affluent coastal Pacific Palisades neighborhood erupted around 10:30 a.m. on Jan. 7 and has caused at least 8 deaths and burned nearly 24,000 acres, with 17 percent containment as of the morning of Jan. 14.

The Eaton fire burning in the northeast unincorporated Altadena area of Los Angeles County started around 6:15 p.m. on Jan 7 and has taken at least 17 lives and burned 14,000 acres, with 35 percent containment.

Combined, more than 12,300 structures were destroyed by the two fires, according to the California Department of Forestry and Fire Protection (Cal Fire) as of Jan. 14.

A Jan. 10 summary from Cal Fire listed the Palisades fire and the Eaton fire as the top third and fourth most destructive fires in California history.

According to JPMorgan Chase analysts, insured losses already exceed $20 billion, up from initial projections of $10 billion. The estimates could increase if the fires are not contained.

The California Department of Insurance urged costomers to begin the claims process by contacting their insurance company or agent and trying to settle their claims before contacting a public adjuster or a lawyer.

Public adjusters represent policyholders and are often reimbursed through a certain percentage of the settlement. Insurance adjusters who represent or contract with insurance companies assess the damage and determine payouts based on the customer’s policy.

The department also warned consumers of potential fraud and illegal actions targeting wildfire victims, urging them not to rush into decisions and to report any suspected illegal actions by unscrupulous contractors or adjusters.

Andrew Moran contributed to this report.