How the Recent Fires in LA will Impact our Insurance Market in Montecito and Santa Barbara—and Tips to Help Those Impacted

Our hearts go out to those impacted by the recent fires in Palisades and surrounding areas. While many of us like to think of ourselves as separate from LA, we know you likely have friends or family who may be impacted and “have always wanted to move” up to Montecito or Santa Barbara.

 As Southern California continues to grapple with the aftermath of five devastating fires, the ripple effects on insurance markets in nearby areas like Montecito and Santa Barbara are becoming increasingly clear. Here, we’ll explore the state of the fires, their impact on insurance availability, and provide practical advice to help those impacted.

A Snapshot of the LA Fires: Scope and Impact

The five recent fires have collectively resulted in the loss of many lives and damage to over 19,000 structures. The financial impact of the fires is expected to be at least $35 billion and rising. The fires remain partially contained, with firefighters making progress but significant challenges persisting due to weather conditions and terrain.

The total estimated value of structures lost in these fires exceeds $1.2 billion. For context, our Thomas Fire, destroyed approximately 1,063 structures. The most devastating wildfire in California’s history remains the Camp Fire of 2018, with nearly 18,800 structures lost, followed by the Tubbs Fire of 2017, which destroyed about 5,636 structures.

A silver lining for homeowners in fire-impacted areas like the Palisades is that recent cancellation notices are likely postponed for a year. The Department of Insurance has a one-year moratorium on cancellations after a catastrophe so this coverage will need to be extended.

Insurance Moratoriums: The Ripple Effect on Montecito and Santa Barbara

The widespread destruction caused by the fires has led most major insurance companies to impose moratoriums on new business across the Los Angeles area. Some of the high-end carriers – which typically insure properties with rebuild values exceeding $8 million – have expanded their moratoriums to include all of California. This development is particularly disappointing as these carriers were beginning to re-enter markets like Montecito and Santa Barbara after years of hesitation due to wildfire risks.

For homeowners in Montecito and Santa Barbara, though the insurance choices now resemble what was available about a year ago. These moratoriums, while temporary, are a step back from the progress we’d seen with new carriers re-entering our market. While we do still expect insurance carriers to return over time, as we are still in a very desirable market, these recent events will absolutely delay their arrival.

Navigating the Recovery Process: Advice for Those Affected by the Fires

We know all to well that the road to recovery can feel overwhelming if you or those you love have lost your home your home or business to a catastrophe such as this. To help ease that burden, consider these steps while navigating claims and rebuilding:

 1. File Your Claim Promptly

Once you and your family are safe, contact your insurance company to file a claim. Provide detailed information about the damage and keep a record of all communications with your insurer. An adjuster will be assigned to investigate your claim and determine the payout amount. Follow up with an email to the adjuster after each call restating what was said or agreed upon.

 2. Leverage Immediate Relief

 In California, if a state of emergency is declared (as with these fires), admitted insurance companies are required to:

• Pay a minimum of one-third of the estimated value of your personal belongings upfront.

• Provide at least four months’ worth of living expenses relative to your “Loss of Use” coverage.

 These payments can be issued even before an adjuster inspects your property. You can also request cash advances for essentials like furniture, clothing, and temporary housing.

 3. Document Everything

Start a recovery diary to log interactions with your insurer, including dates, names, and discussion points. Take photos of damaged property before beginning any cleanup or debris removal and keep receipts for expenses such as hotel stays and pet boarding.

 4. Assess Settlement Offers Carefully

If an adjuster offers a settlement on the spot, consult an experienced contractor to ensure the amount aligns with repair or rebuild costs. Review your policy in detail before accepting any offers and remember that accepting incremental payments does not preclude you from negotiating for more later.

 5. Seek Additional Support

Consider hiring a public adjuster to advocate on your behalf if you encounter challenges with your claim. These professionals can help you navigate complex policy language and negotiate settlements but typically charge a percentage of your claim.

A Final Note on Recovery

The aftermath of a wildfire is an emotional and logistical challenge. Taking the recovery process step by step can help you avoid hasty decisions and potential scams. At Weiser Insurance, we are here to support our community during these trying times. Whether you need guidance on filing a claim or exploring coverage options, our team of experts is here for you and yours.