Many home insurance companies refuse to pay.

(CLO) Last week's fierce wildfires caused severe damage, wiping out entire neighborhoods and destroying thousands of homes in Los Angeles.

The Palisades and Eaton fires have destroyed more than 6,800 structures and damaged nearly 900 others since they broke out in early January, according to the California Department of Forestry and Fire Protection (Cal Fire).

Estimates from AccuWeather suggest total damage and economic losses could reach $250 billion to $275 billion, making it potentially one of the costliest natural disasters in US history.

Wildfires in Los Angeles. Photo: CC/YisroelB501

Thousands of homeowners who lost their properties are hoping for compensation to rebuild, but the refusal of insurance companies to pay out is posing a major problem.

Data from Weiss Ratings shows that large insurers in California had a claim denial rate 37% higher than the national average in 2023.

Farmers Insurance in Los Angeles has the highest denial rate (49.7%) of all insurance companies operating in California.

Two USAA affiliates had the second highest claim denial rate, denying 48% of claims, with more than 700,000 claims going unpaid over the past year.

Allstate ranked third with a denial rate of 46.4%, or 893,407 unpaid claims.

Despite insurers' pledges to help customers, denial rates have been steadily rising for nearly two decades. This is especially acute in disaster-prone states like California and Florida.

Martin D. Weiss, founder of Weiss Ratings, stressed the need for “insurance transparency laws” to protect consumers.

Representatives from Farmers, USAA, and Allstate said they are focused on helping customers rebuild after the disaster. Disaster response teams from Farmers and Allstate have begun deploying to the scene, while USAA has not yet commented officially.

These companies recommend customers use apps and hotlines to file claims.

While firefighters have made progress, with the Palisades Fire 19 percent contained and the Eaton Fire 45 percent contained as of the morning of January 15, strong winds continue to make fighting the fires difficult. According to the National Weather Service, dangerous winds will gradually decrease over the weekend, giving conditions a chance to improve.

Ngoc Anh (according to Newsweek, LAT, Independent)

Source: https://www.congluan.vn/chay-rung-los-angeles-nhieu-cong-ty-bao-hiem-nha-co-the-tu-choi-boi-thuong-post330650.html