Published by REALTOR.com | January 16, 2025
Estimated insured losses from the Palisades and Eaton fires in Los Angeles currently range from $35 billion to $45 billion, said CoreLogic.
The devastating fires in Los Angeles are on track to shatter prior records for total losses, according to a new analysis from CoreLogic.
Estimated insured losses from the Palisades and Eaton fires in Los Angeles currently range from $35 billion to $45 billion, said Tom Larson, senior director of insurance solutions at CoreLogic, at a virtual briefing event on Thursday.
That would make the recent fires by far the largest wildfire insurance industry loss event in history, exceeding the $11.5 billion in insured losses in the 2018 Camp Fire in Northern California.
The CoreLogic estimate covers both residential and commercial properties, although the vast majority of claims are expected to be for damaged homes. The total loss estimate includes coverage for homes and their contents, other permanent structures, additional living expenses, and business interruption.
CoreLogic, which uses satellite imagery, ground survey teams, and public data to generate loss estimates, projects that nearly 20,000 structures worth a cumulative $50 billion will be impacted in some way by the fires, ranging from minor smoke damage to utter destruction.
Of the impacted structures, the real estate analytics firm projects more than 12,500, worth a cumulative $30 billion, will show significant damage.
However, Larson noted that while firefighters have made significant gains in containing the fires, the battle to protect lives and property still continues, making any loss projections preliminary.
It’s also unclear how many of the impacted homes were uninsured, or insured for fire damage only through California’s bare-bones insurer of last resort, the state-operated FAIR plan.
