Losses from wildfires still burning out of control around Los Angeles are estimated to be between $35 billion to $45 billion, according to CoreLogic.

The Eaton and Palisades fires have ravaged commercial properties and homes, including in neighborhoods with pricey homes that make repairing or replacing even moderate damage expensive. As of Friday morning, the Eaton fire was 55% contained, while the Palisades fire was only 27% contained.

“The destruction caused by these fires is anticipated to be the most expensive in the state’s history with effects on the insurance industry that will persist into the future,” said Tom Larsen, senior director of CoreLogic Insurance Solutions.

There will be a surge in insurance claims for fire and smoke damage, and debris removal, Larsen said. CoreLogic will release estimates on the final insured loss when the fires have been fully contained. 

Experts told Scotsman Guide that affected homeowners would likely face higher insurance and mortgage costs. 

“This event highlights the paramount challenge for homeowners and the insurers that support them,” Larsen said, noting the increased density of homes and properties in areas at risk for wildfires.

“Los Angeles is a resilient community, and as they look to rebuild it will be essential to design or redesign with mitigation practices in mind, so an event of this magnitude never happens again,” Larsen said.