🌅 Today’s stat: $45 billion

SOURCE

CoreLogic

WHAT TO KNOW

• The Eaton and Palisades wildfires have destroyed nearly 17,000 structures, mostly residential properties, displacing more than 150,000 people and claiming at least 28 lives. The fires have also caused an estimated $350 million in damage to public infrastructure, though Los Angeles city officials caution the estimates are preliminary and likely to grow over the coming weeks.

WHY IT MATTERS

• The wildfires are expected to be the most expensive wildfires in U.S. history, as well as one of the most expensive natural disasters ever. One analysis by AccuWeather suggests the total cost could be as high as $275 billion, when including lost wages and housing displacements, though other experts say the AccuWeather figure is overblown.

CONNECT THE DOTS

• The disaster highlights the inextricable link between climate change and home insurance coverage, which is based on a region’s historical weather patterns, and underscores why some experts believe parts of the U.S. are marching toward an “uninsurable future.” Between 2020 and 2022, when more than 23,000 wildfires ripped through California, private insurers dropped wildfire coverage for some 2.8 million home insurance customers in the state.