CoreLogic Estimates the Eaton and Palisades Fires are Causing Devasting Initial Property Losses Estimated to be Between $35-45 Billion
Industry Update
January 16, 2025
Source: CoreLogic
CoreLogic®, a leading 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.”
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. To join us, visit the Red Cross website.
Please visit the CoreLogic natural hazard risk information center, CoreLogic Hazard HQ Command Central™ to get access to the most up-to-date wildfire data and see reports from previous catastrophes.
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