Catastrophic risk modeling firm KCC estimates that insured losses from the Los Angeles fires are about $28 billion, making them the costliest fires in U.S. history.
Since the fires broke out on Jan. 7, they have burned an area nearly as large as Washington, D.C., killed 28 people and damaged or destroyed nearly 16,000 structures, according to the California Fire Department.
American and European insurers are expected to face disaster-related claims worth billions of dollars.
Estimated losses include fire damage, as well as smoke damage, timely losses to residents in evacuation areas whose homes were not damaged by fire, guaranteed replacement cost coverage, and increasing demand, KCC said in its report.
These losses should be covered by standard insurance policies.
-Insurers have been hit hard by rising catastrophe claims caused by several wildfires and other natural disasters over the past two years.
The Palisades Fire has burned nearly 24,000 acres in the Santa Monica Mountains and the cities of Pacific Palisades and Eastern Malibu. The Eaton Fire has burned more than 14,000 acres in the Angeles National Forest and the towns of Altadena and Sierra Madre.
On Wednesday, Verisk also estimated losses from the fire to be between $28 billion and $35 billion.
