LA Wildfires’ Insured Losses Risk Exceeding $10 Billion

Insurers pulled back from the state, citing natural disasters
Many Californians get coverage through last-resort insurer

Cars destroyed by the Eaton Fire sit at a burned auto shop in Altadena, California, on Jan. 8.Photographer: Justin Sullivan/Getty Images

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By Alexandre Rajbhandari

January 9, 2025 at 4:15 PM UTC

Updated on

January 9, 2025 at 6:08 PM UTC

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Wildfires engulfing swaths of Los Angeles are expected to be one of the nation’s costliest natural disasters, with insurers potentially incurring losses of more than $10 billion.

While a preliminary estimate from Morningstar DBRS points to insured losses in excess of $8 billion, some scenarios could cost insurers more than $10 billion given the expensive properties at risk, according to Bloomberg Intelligence analysts.