Ongoing commercial and residential real estate losses from the Eaton and Palisades Fires in Los Angeles were estimated to be between $35 billion and $45 billion as of Thursday, January 16, reported CoreLogic, the global property information, analytics and data-enabled solutions provider. CoreLogic will provide final insured loss estimates once the fires have been fully contained.
This analysis of both residential and commercial properties accounts for both fire and smoke damage as well as demand surge, debris removal, clean up and Additional Living Expenses (ALE). The majority of losses are to residential properties. Many of the potentially impacted properties are high value homes, so even moderate damage from the fires or smoke could result in costly claims.
“The destruction caused by these fires is anticipated to be the most expensive in the state’s history with effects on the insurance industry that will persist into the future. This event highlights the paramount challenge for homeowners and the insurers that support them — the increasing density of homes and properties near the wildlife-urban-interface,” said Tom Larsen, senior director of CoreLogic Insurance Solutions. “Los Angeles is a resilient community, and as they look to rebuild it will be essential to design or redesign with mitigation practices in mind, so an event of this magnitude never happens again.”
CoreLogic is supporting recovery efforts for people affected by the wildfires through a donation to the Red Cross, enabling them to prepare for, respond to and help people recover from these disasters.
