Sat Jan 11 14:30:05 UTC 2025: ## LA Wildfires to Become One of Costliest US Natural Disasters, Estimates Exceed $135 Billion

**Los Angeles, CA** – The devastating wildfires currently raging through Los Angeles are poised to become one of the most expensive natural disasters in US history, with estimated losses already exceeding $135 billion. Private forecaster AccuWeather projects total losses could reach as high as $150 billion, surpassing even the damage caused by the 2018 Camp Fire.

The fast-spreading blazes, fueled by strong winds, have caused widespread destruction. Over 10,300 structures have been destroyed, according to initial reports, including over 5,300 from the Palisades blaze and over 5,000 from the Eaton Fire. AccuWeather Chief Meteorologist Jonathan Porter described the scale of the destruction as “one of the costliest wildfire disasters in modern US history.”

The insurance industry anticipates a significant blow, with analysts from Morningstar and JP Morgan predicting insured losses exceeding $8 billion. This adds to existing pressures on the industry grappling with the increasing frequency and severity of natural disasters. The massive losses will likely force insurers to reassess risk and pricing, potentially leading to higher premiums and reduced coverage in high-risk areas.

Consequently, many residents are turning to state-backed insurance plans, which often provide less comprehensive coverage at a higher cost. California’s Fair Plan has seen a dramatic increase in policyholders, more than doubling since 2020. Areas affected by the wildfires have witnessed the highest uptake of these plans.

Moody’s Ratings analyst Denise Rappmund warned of widespread negative impacts on California’s insurance market, including increased premiums and reduced availability of property insurance. The long-term consequences will include damage to property values, strained public finances, and negative effects on health and tourism.

While official government damage estimates are pending, the sheer scale of destruction and the high property values in the affected areas suggest the Los Angeles wildfires will likely rank among the top five costliest wildfires in US history, potentially surpassing even the $12.5 billion in insured losses from the 2018 Camp Fire. Leading insurance company Aon has already confirmed this expectation.

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