When will Cali Fire victims see insurance payouts?

Experts say it’s very difficult to gauge a timeline for when casualties occurred Wildfires in California They will receive their insurance payments, although it may take from a few weeks to several years.

No one knows how long it will be before residents affected by the fires, which broke out this week across Los Angeles, see insurance payouts, Candice Schanbrunn, managing partner at property damage law firm Cernitz Law, told FOX Business.

The timing depends in part on the insurer, applicable coverage and policy terms as well as the volume of claims, said Brian Braswell, senior vice president of independent insurance brokerage The Daniel and Henry Co..

“Businesses are overwhelmed with claims,” Braswell said. “Imagine you had 100 claims a month, and now you have a million claims.”

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Aside from the sheer volume of claims handled, especially during catastrophic events, Braswell said the complexity of the claim can also impact the speed of payouts.

He added that the efficiency of the insurance company’s claims processing system will also be a factor.

Braswell estimated it could take a few weeks or years. However, “settlers are incentivized to push/close claims to get them out of their office and move on to the next claim,” Braswell added.

The process looks different for everyone, even if they face the same damage, Schanbrun said.

For example, insurance companies “continuously analyze financial statements and calculate how much money they need in reserves at any given time for the purposes of reinvesting that money and paying claims,” ​​Schanbrun said.

According to Schanbrun, this is why some homeowners get paid right away, while others who suffer the same type of damage from the same loss may not get paid for six months or even years.

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In some cases, “they may deny the allegation outright, hoping nothing will ever happen, or deny the allegation knowing they will end up getting sued, but at least deny and wait for the lawsuit to be filed.” “Applying will give them more time that they need,” Schanbrun said.

But given the nature of fire losses and the demographics of the area affected by the fires, Schanbrun doesn’t think most insurers “will slow down.”

However, Braswell said victims shouldn’t wait to look at their insurance policy or ask questions and get a check, because “California’s insurance market is already in trouble, and it’s about to get much worse.”

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Anthony Lopez, CEO of Your Insurance Lawyer, told FOX Business that although the timeline may be affected by many challenges, there are proactive steps victims can take to “offset potential delays.” They include contacting your insurance provider immediately after the damage occurs, providing detailed documentation of the home or business over time, stamped before-and-after photos, and an estimate from a general contractor outlining repair or replacement costs, Lopez said.