Wildfires Not Expected to Affect Insurance Premiums
A trade group that represents insurance companies says claims paid out to victims of California wildfires last year and this year aren’t expected to impact premiums for the average home owner.
Friday, July 30, 2004
Last year was costly for insurance companies. Wildfires in California destroyed 36-hundred homes according to the state Insurance Commissioner’s Office. One company, Allstate expects to pay out as much as 330 million dollars to policyholders from last year’s fires. This year could be just as bad as flames continue to mow down hundreds of homes. Some homeowners are concerned the claims will lead to higher premiums. The experts say it probably will for those who live in the most vulnerable areas, but it’s unlikely the average homeowner will face significantly higher rates. Pete Moraga is a spokesman for the Insurance Information Network of California. MORAGA :07—In terms of anybody else in California that was not affected by the fires, there may be some impact, but very little impact. Insurance executives say if wildfires continue at the present rate over the next couple of years, it could lead to higher premiums for homeowners in regions unaffected by the blazes. Bob Hensley KXJZ News.