A significant number of insurance companies in California have pledged to ease the financial strain on homeowners affected by the recent Los Angeles wildfires. These companies have agreed to pay a minimum of 75 percent of the contents coverage for homes destroyed, without requiring detailed inventories of lost possessions.
The California insurance regulator made the request last month, seeking companies to pay up to 100 percent of coverage without demanding itemized lists of lost items. The regulator disclosed the responses from over 60 companies on Thursday. This move aims to expedite financial assistance to those who have suffered devastating losses.
However, not all insurers have agreed to this expedited process. State Farm, which holds the largest market share in California, was among those that declined the regulator’s request. “The fact that State Farm will not pony up is a huge problem, because they have 20 percent of the market. That’s deeply problematic,” stated Douglas Heller, Director of Insurance at the Consumer Federation of America.
In response, State Farm spokesman Justin Tomczak said in an emailed statement, “Advancing full policy limits with no inventory can lead to payments that exceed actual losses, raising the price of insurance for all California customers. State Farm handles contents inventory advances in accordance with California law.”
Other major national insurers, including Allstate Insurance Company, Liberty Mutual Group, and Travelers Group, also rejected the regulatory appeal. These companies collectively insure over 39 percent of California homes, based on 2023 market share data from the California Department of Insurance.
