According to CoreLogic, initial estimates for the residential and commercial losses from the Eaton and Palisades Fires in Los Angeles range from $35 to $45 billion. The final insured loss figures will be provided by the Irvine-based property information company once containment of the fires is complete.
This assessment takes into account damage caused by both fire and smoke, as well as additional costs such as demand surge, debris removal, clean-up, and Additional Living Expenses. Residential properties are expected to bear most of these losses.
Tom Larsen, senior director of CoreLogic Insurance Solutions stated that this event is likely to result in record-breaking expenses for California’s insurance industry with long-lasting effects. He also emphasized on how this highlights a major challenge faced by homeowners and insurers -the growing number of homes near wildlife-urban interfaces. As Los Angeles begins its rebuilding process after this devastating event, it will be crucial for mitigation practices to be incorporated into design or redesign plans so that such a catastrophic incident can be prevented in the future.
