KCC Flash Estimate - January 2025 California Wildfires
January 23, 2025
Based on the high-resolution KCC US Wildfire Reference Model, KCC estimates that the insured loss (from privately insured and FAIR plan policies) to residential, commercial, and industrial properties, and autos from the Palisades and Eaton Fires will be close to $28 billion.
The estimated losses include damage from the fires, as well as smoke, time-element losses for residents in evacuation zones whose homes were not damaged by the fire, guaranteed replacement cost coverage, and demand surge. These losses should be covered by typical insurance policies. California authorities have a strong incentive to stabilize the insurance market so there will likely be efforts in place to expedite the rebuilding process, control cost increases, and avoid saddling insurers with excess and uncovered losses.