Initial California wildfire losses estimated between $35B and $45B

IRVINE, Calif., January 16, 2025—CoreLogic, a global property information, analytics and data-enabled solutions provider, today announced preliminary residential and commercial loss estimates for the Eaton and Palisades Fires in Los Angeles, California. According to this new data analysis, ongoing losses from the Los Angeles wildfires are estimated to be between $35 to $45 billion, as both fires are less than 50% contained as of Thursday afternoon. 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.”

Methodology

The U.S. Wildfire Model, a probabilistic loss model, includes robust hazard definition, comprehensive agents of damage, local vulnerability functions, variable import resolution, detailed financial modeling, flexible reporting, and has undergone extensive expert review. Both burn and smoke damage are accounted for, and more than 3.5 million stochastic events are incorporated. Model terrain and environmental data is at a resolution of 30m x 30m. The following states are included in the model:  Arizona, California, Colorado, Florida, Idaho, Montana, Nevada, New Mexico, Oklahoma, Oregon, Texas, Utah, Washington, and Wyoming.