Insured losses from fires in Los Angeles estimated at $28 billion

According to the California Fire Department, since the fires began on January 7, 28 people have died and nearly 16,000 structures have been damaged or destroyed.

Projected losses include fire and smoke damage, losses for residents who were forced to evacuate even though their homes were undamaged, and guaranteed coverage for the cost of restoration, according to the KCC report. Not only American insurers, but also European ones will face claims worth billions of dollars. These losses should be covered by standard insurance policies, the company added.

In recent years, insurers have been under significant pressure due to increased payouts for insurance claims caused by wildfires and other natural disasters, Reuters noted.

In mid-January, weather service AccuWeather said total losses from the Los Angeles wildfires had risen to between $250 billion and $275 billion, surpassing the total economic losses of the entire 2020 wildfire season.

The worst fires were reported in areas from Santa Monica to Malibu, home to some of the most expensive luxury real estate in the United States, said AccuWeather chief meteorologist Jonathan Porter. According to him, the average cost of these houses exceeds 2 million dollars.