T
he devastating wildfires in Los Angeles have surpassed 9,000 destroyed homes and businesses, with the city's most destructive series of fires ever likely being the costliest. Neighborhoods have been reduced to ash, with an estimated 2,000 homes and businesses destroyed since Tuesday. Over 100,000 residents are under mandatory evacuation orders as six uncontained fires continue to rage on.
The scale of destruction is staggering, with about 27,000 acres consumed – equivalent to the entire city of San Francisco. The fires have struck heavily populated and affluent areas, including the Hollywood Hills, threatening iconic LA landmarks. Residents are facing not only the immediate threat of the fires but also hazardous smoke levels and utility power shutoffs.
The rising wildfire risks in California have led to increasing homeowners insurance costs, with some major insurance companies no longer issuing new policies in the state. Actor James Woods shared his family's harrowing experience fleeing their newly renovated home in Palisades as flames closed in. His neighborhood was among those dropped by a major insurance company just four months prior.
A new California Department of Insurance regulation requires carriers to resume providing coverage, but it's unclear whether residents who'd been dropped could obtain coverage since the regulation took effect. Analysts estimate insured losses from the wildfires could exceed $20 billion, potentially making it the most expensive wildfire outbreak ever for the insurance and reinsurance market.
The National Association of REALTORS is monitoring the situation closely, acknowledging that California's insurance rates remain relatively affordable compared to other states. However, concerns persist about the impact on property insurance availability and affordability. The California Association of REALTORS has made available downloadable resources to help residents find fire insurance, protect themselves from scams, and better protect their homes against wildfires.
