CBS-TV Evening News (6:30 PM EST)
KATIE COURIC, Anchor: Early estimates of the fire damage top a billion dollars in San Diego County alone. An army of claims adjusters has fanned out, rather, across Southern California. Insurance in a fire zone is a risky business for the companies, but especially for the homeowners. John Blackstone has more.
JOHN BLACKSTONE reporting: The smoke had barely cleared when insurance adjuster Dan Gil began working on claims.
Mr. DAN GIL: This house is a total loss.
BLACKSTONE: He’s part of an army from every major insurance company that moved quickly into Southern California, even handing out some early checks.
Unidentified Woman #1: Linda Garrison?
Unidentified Woman #2: Steven Marks?
BLACKSTONE: Consumer advocates say the industry’s initial response to disaster is usually good, but that can change.
Mr. DOUG HELLER (Foundation For Taxpayer & Consumer Rights): As you get further away from the disaster, the insurance companies seem to get tighter and tighter and they squeeze harder and harder.
BLACKSTONE: From wildfires…
Offscreen Voice: Get out of here!
BLACKSTONE: …to landslides to earthquakes, insurance companies face plenty of risks in California. Still, the state’s huge population has given companies six to $7 billion dollars in profits in the last three years. And nationally the industry made nearly $65 billion last year alone. But there have also been some record payouts: Hurricane Katrina, $42 billion; Hurricane Andrew, $22 billion; the World Trade Center, $21 billion; the Northridge earthquake, $17 billion. Compared to that, the estimates for the Southern California fires are barely a blip.
Mr. HELLER: Oh, yeah. There’s plenty of money in the insurance companies’ coffers here in California to cover these claims and still be walking away with several billion dollars in profits.
BLACKSTONE: In the end, all those billions come down to individuals depending on insurance to make things right. And disasters like this remind everyone everywhere to check their coverage because the worst can happen. John Blackstone, CBS News, Malibu.
