Insurance a Leading Engine Of LA’s Wildfire Recovery

$22.4B paid and counting; mitigation and measured reforms are restoring stability.

One year after the Palisades and Eaton wildfires, insurers have paid more than $22.4 billion to help families and businesses rebuild, representing nearly 80 percent of all recovery funds committed to date.

These figures, reported by the California Department of Insurance, show 42,121 claims filed, with 94 percent fully or partially paid. Payments include 39,677 advance payouts. The CDI data reflects actual payments through Nov. 17, 2025 which continues to grow as rebuilds advance.

Recovery necessitates commitments from sectors beyond insurance. Federal, state, local, and private sources have collectively appropriated about $6 billion to complement insurance payments as rebuilding moves forward. Streamlined permitting and debris removal have helped insured reconstruction convert from checks to permits, and construction has already started across LA County jurisdictions.

Looking ahead, California’s Sustainable Insurance Strategy will allow for state-of-the-art technology to more accurately evaluate risk, and recognize the important role of reinsurance in determining the cost of coverage. Paired with scientific advances in construction and wildfire risk mitigation – such as a fully noncombustible “Zone 0” in which areas around homes are cleared of flammable items to prevent the spread of fire – these reforms can help bend the loss curve, stabilize the market, and make our communities safer.