As flames tore through Los Angeles neighborhoods this fall, the devastation quickly escalated from tragedy to history-making catastrophe. With more than $135 to $150 billion in estimated losses and tens of thousands displaced, experts now warn that this disaster could reshape California's insurance landscape for decades.
Insurance veteran Karl Susman, appearing on CBS's On Your Side, described the event as "unlike anything I've ever experienced in over three decades of doing this." His agency alone has already logged over 60 total home losses, compared to just a handful in previous wildfire years.
"This isn't just another fire season," Susman emphasized. "It's an entirely new chapter in how we understand, price, and manage risk in California."
According to early figures from the National Weather Service, the economic impact of the Los Angeles fires may reach $150 billion or more, making it one of the costliest natural disasters in U.S. history.
That total includes not just direct property losses but also ripple effects on local economies, infrastructure, and — crucially — the insurance industry itself.
Insurance claims are already pouring in from burned-out neighborhoods in Pacific Palisades, Altadena, Woodland Hills, and Malibu. Many residents remain evacuated, uncertain whether their homes survived.
"Most people don't even know the situation with their home yet," Susman noted. "They're hoping for the best, but they're still evacuated — so the number of claims we've seen is just the tip of the iceberg."
In the days following the fire's escalation, California Insurance Commissioner Ricardo Lara issued an emergency moratorium prohibiting insurers from canceling or non-renewing homeowners policies in affected ZIP codes — as well as in the areas surrounding the burn zones.
The goal: to prevent a repeat of the insurance exodus that followed previous fires in Paradise, Santa Rosa, and Napa.
"If you're in one of the affected ZIP codes," Susman explained, "you cannot be non-renewed right now. Even if your policy was canceled for non-payment, the insurer is supposed to reinstate it if you reach out and request it."
However, the key word is request. Homeowners must take action to ...
