California Wildfires Trigger Home Insurance and Housing Crisis

Record-breaking fires in Los Angeles expose systemic challenges in insurance, housing affordability, and climate adaptation.

The Los Angeles wildfires are the costliest in California's history, with insured losses estimated at $30 billion and total economic damages reaching up to $150 billion.
Over 12,000 structures have been destroyed, at least 24 people have died, and tens of thousands remain displaced as fires continue to burn across the region.
Rising climate risks are driving insurers out of high-risk markets like California, leaving state-run insurance programs like the FAIR Plan financially strained and unsustainable.
Experts warn that increasing insurance premiums and property devaluations could destabilize the U.S. housing market, particularly in areas prone to wildfires, floods, and extreme weather events.
Calls for systemic reform include better risk-based insurance pricing, stricter zoning laws, and proactive climate adaptation measures to prevent further economic and social fallout.