KAIFPA urges wildfire victims to file claims quickly to save processing time

The Korean American Insurance & Financial Professionals Association (KAIFPA), led by President Sunny Kwon, hosted a meeting in Los Angeles to assist wildfire victims by sharing critical insurance information.

Held on January 15 at the Oxford Palace Hotel in LA’s Koreatown, the briefing featured KAIFPA leaders, including Vice Presidents Ricky Choi and Marc Jung, who discussed insurance projections for wildfire damage and claim procedures based on policy types.

Insurance Outlook for Wildfire Damage

Both general insurance policyholders and California FAIR Plan subscribers are expected to receive proper compensation. However, the extensive damage may result in delays in claim processing.

Ricky Choi noted, “Pacific Palisades alone has reported over $5.8 billion in damages. Covering such astronomical losses will lead to significant deficits for insurers, potentially driving up premiums not only in wildfire-prone areas but across other regions as well.” He warned that insurance premiums could rise by at least 30% in the near future.

Choi also referred to the California Department of Insurance’s (DOI) moratorium issued on January 7, which prohibits insurers from canceling or refusing to renew policies in wildfire-prone areas for one year. He emphasized that insurers are required to notify customers 90 days in advance of any cancellation or non-renewal. If such actions occurred after October 9, 2024, policyholders may appeal these decisions to their insurers.

Insurance Claim Process

Marc Jung emphasized the importance of initiating claims as quickly as possible, given the anticipated surge in filings. With the DOI acknowledging a shortage of adjusters and efforts underway to address staffing issues, delays in claim processing are already expected. Filing promptly increases the likelihood of faster resolution.

Jung highlighted DOI guidance, noting that for homes completely destroyed by fire, claimants do not need to itemize every lost possession. Instead, they can categorize items broadly, such as clothing or footwear, when filing claims.

He also advised that evacuees could file “partial claims” immediately to receive Additional Living Expenses (ALE). According to DOI regulations, evacuees are entitled to four months of housing costs and one-third of the insured value of personal property for emergency support.

Jung stressed the importance of submitting complete documentation and promptly responding to insurer requests, as thorough paperwork is critical for timely compensation.