Fox News contributor Mary Kathryn Hamm and ZUMA Global President Heather Zumarraga discuss California's lack of resources to fight the 'heartbreaking' wildfires on 'Making Money'.
Experts say it's incredibly difficult to gauge a timeline of when a victim has been killed California wildfires will receive their insurance payout, note that it can be anywhere from a few weeks to a few years.
Candice Shanbron, managing partner of the property damage law firm Sarnitz Law, told Fox Business that residents affected by fires this week across Los Angeles don't know if they'll see insurance payouts.
Brian Braswell, senior vice president of independent insurance broker The Daniel & Henry Co., said the timing depends, in part, on the insurance company, the coverage and policy terms in place, as well as the amount of the claim.
“Companies are inundated with claims. Imagine you had 100 claims a month, and now you have a million,” Braswell says.
Firefighters battle winds and flames as homes burn along Pacific Coast Highway near Carbon Canyon Road in Malibu, Jan. 8, 2025, in the Palisades fire. (David Crane/Media News Group/Los Angeles Daily News via Getty Images/Getty Images)
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In addition to managing the sheer volume of claims, especially during a catastrophic event, Braswell said the complexity of claims can also affect the speed of payment.
The efficiency of the insurance company's claims processing system will also be a factor, he added.
A firefighter battles the Palisades Fire as homes burned along Pacific Coast Highway during a powerful storm on January 8, 2025 in Los Angeles, California. (Apu Gomes/Getty Images/Getty Images)
Braswell speculated that it could be as short as a few weeks or stretch out to a few years. However, “adjusters are motivated to get off their desks and move on to paying/closing claims,” Braswell added.
Shanbron said the process looks different for everyone, even if they face the same loss.
For example, insurance companies “are constantly analyzing financial data and calculating how much money they need to have in reserve at any given time for the purpose of reinvesting those funds and paying claims,” says Shanbron.
According to Shanbron, that's why certain homeowners will pay right away, while others with the same exact type of damage caused by the same damage won't pay for six months or even years.
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In some cases, they may “deny the claim entirely, hoping nothing will come of it, or they may deny the claim knowing they will be sued, but at least denying and waiting for the lawsuit. Filing is more time than they need.” Will buy,” Shanbron said.
Smoke billows from a brush fire in Pacific Palisades, California on January 7, 2025. (David Swanson/AFP via Getty Images/Getty Images)
But given both the nature of the fire damage and the population of the area affected by the fire, Shanbron doesn't believe most insurance companies will “drag their feet.”
Still, Braswell said victims shouldn't wait to see their insurance policies or ask questions and get a check, because “California's insurance market is already troubled, and it's only going to get worse.”
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Anthony Lopez, CEO of Your Insurance Attorney, told Fox Business that while the timeline can be impacted by a number of challenges, there are proactive steps that victims can take to “potentially offset the delay.” These include contacting your insurance provider immediately after the damage, providing detailed home or business documentation in time, stamped before and after photographs and an estimate from a general contractor outlining the cost to repair or replace, Lopez said.