Los Angeles Wildfires Estimated to Cause Record $150 Billion in Damages

The fires, which have destroyed thousands of homes, highlight California's insurance and climate resilience challenges.

Economic losses from the Los Angeles wildfires are projected to reach between $135 billion and $150 billion, potentially making it the costliest natural disaster in U.S. history.
Insured losses are estimated at $20 billion to $30 billion, surpassing the 2018 Camp Fire as the largest insured wildfire loss ever recorded.
Over 10,000 structures, many in high-value areas like Pacific Palisades, have been destroyed, with rebuilding efforts expected to take up to a decade for some homeowners.
California's strained insurance market faces further pressure, with the state's FAIR Plan, a last-resort insurer, under significant stress as private insurers reduce their presence in fire-prone regions.
Experts emphasize the need for resilient rebuilding practices and stronger mitigation measures, as climate change increases the frequency and severity of such disasters.