Los Angeles wildfires projected up to $45 billion insured losses

The wildfires in Los Angeles are set to break records for total losses, according to a new analysis by CoreLogic. Tom Larson, senior director of insurance solutions at CoreLogic, stated during a virtual briefing that estimated insured losses from the Palisades and Eaton fires range from $35 billion to $45 billion. This would surpass the $11.5 billion in insured losses recorded during the 2018 Camp Fire in Northern California.

CoreLogic's estimate encompasses both residential and commercial properties, with most claims anticipated for damaged homes. The total loss estimate includes coverage for homes, contents, other permanent structures, additional living expenses, and business interruption.

Using satellite imagery and public data, CoreLogic projects nearly 20,000 structures worth $50 billion will be impacted by the fires. Of these structures, more than 12,500 are expected to suffer significant damage.

Larson noted that despite progress made by firefighters in containing the fires, efforts to protect lives and property continue. "There are a lot of uncertainties in this loss estimate," he said. "We’ve done our best forecast looking at the past, but again there’s some uncertainty."

Thomas Jeffrey, CoreLogic’s chief wildfire scientist explained that extreme weather conditions contributed to fueling the Palisades and Eaton wildfires along with other nearby fires that were contained before causing major damage or loss of life.

Garret Gray, president of CoreLogic Insurance Solutions shared his personal experience evacuating his home during the Palisades fire. Despite traffic gridlock preventing him from reaching his children's school by car due to evacuation orders he was able to reunite safely with them on foot amidst chaotic scenes.

Realtor.com is partnering with the REALTORS Relief Foundation to raise funds supporting victims of these January 2025 Southern California wildfires providing urgent housing-related assistance for affected homeowners.