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LA wildfire insured losses total billions of dollars, ratings agencies say

10/1/2025 6:28
The most destructive wildfires ever for Los Angeles may cause billions of dollars in insured losses, ratings agencies said on Thursday, though many homes are likely uninsured.



The wildfires burning in the Pacific Palisades, Eaton, Hurst and other Los Angeles neighbourhoods may lead to insured losses of more than $8 billion, analysts at Morningstar DBRS said in a note. This surpasses the 2018 Woolsey fire in California, which caused more than $6 billion in losses, Morningstar said.



Jasper Cooper, senior credit officer for Moody's Ratings, expected insured losses to amount to billions of dollars given the area's high values of homes and businesses.



Homeowners have found it tough to buy insurance in catastrophe-prone states as several firms have pulled out of the market.



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