USAA Becomes 3rd Insurer to Report $1B-Plus in LA Wildfire Losses

USAA has paid out more than $1 billion for the Los Angeles wildfires, making it the third insurer to report $1 billion or more in payouts for the destructive blazes that burned thousands of properties.

The company, which is among the state’s top homeowners insurers, on Wednesday announced 86% of wildfire claims have received initial payments to date.

The San Antonio, Texas-based company reported more than 3,500 claims received, and is projecting it will ultimately pay out $1.8 billion in losses from the wildfires.

Insured and total losses from the January wildfires continue to rise. A report out from UCLA on Tuesday indicated that L.A. wildfire losses could be as high as $164 billion.

Preliminary data show insurers have paid out more than $4 billion for losses from the biggest two of the Los Angeles-area wildfires that swept through the region and destroyed tens of thousands of homes earlier this month.

Claims figures from insurers released by the California Department of Insurance on Jan. 30 show that 31,210 claims have been filed for home, business, living expenses and other disaster-related needs. According to CDI, $4.2 billion in claims have been paid.

The FAIR Plan, the state’s insurer of last resort, reported it has received more than 3,200 claims as of Jan. 28 for damage caused by the Pacific Palisades Fire and more than 1,200 claims for damage caused by the Eaton Fire.

State Farm, the state’s top homeowners insurer, said it has paid nearly 10,000 claims worth roughly $500 million from home and auto damage.

State Farm Monday said it is asking the California Department of Insurance to immediately approve emergency interim rate increases, including a 22 percent average hike for homeowners. Part of the basis for the request is the further capital depletion anticipated as a result of the wildfire losses .

Chubb said the wildfires are expected to cost the insurer $1.5 billion in the first quarter.

Photo: 2025 Palisades Fire. Source: Cal Fire

The version of this article was previously published by Insurance Journal.