The Los Angeles Wildfires: One Year Later, Insurers Highlight Progress and Call for a More Resilient Future

LOS ANGELES, Calif. - One year ago, firestorms tore through Los Angeles, damaging or destroying more than 18,000 structures, claiming 31 lives, and forcing over 200,000 people to evacuate. Entire communities in Altadena and the Pacific Palisades were leveled into what became the largest insured wildfire in U.S history, with final insurance claims costs estimated to reach $40 billion.

As thousands of families continue the hard work of recovery, the American Property Casualty Insurance Association (APCIA) is marking the one-year anniversary by highlighting what insurers have done to help policyholders rebuild-and calling for urgent action to ensure communities never again face devastation of this scale.

"Insurers have been working hard this year to help families recover from these historic wildfires, paying over $20 billion in claims so far," said Karen Collins, APCIA vice president, property & environmental. "California is now at a pivotal moment. As over 16,000 homes are rebuilt, the state has a rare opportunity to reshape wildfire resilience and prevent future firestorms from causing similar massive destruction. Vegetation in Zone 0-the 0 to five feet around a home-is simply too dangerous. If we want to avoid repeating last year's tragedy, we must eliminate the pathways that allow embers and flames to ignite homes. Other wildfire-prone states are watching what California does and it will set a precedent for how other states build resilience."

Insurers' Commitment: A Year of Rebuilding and Support

Since the first hours when the January 7 fire ignited, insurers have been on the ground helping families navigate the claims and rebuilding process. Over the past year:

• Roughly 40,000 claims have been filed, with insurers paying over $20 billion to date to help families restore or replace homes, belongings, and businesses (as of the most recent data released July 31).
• Insured losses are projected to reach $40 billion.
• Insurers are continuing to ensure that every claim is reviewed carefully, accurately, and with compassion.
• 95 percent of claims filed have been partially paid according to California Department of Insurance data.

A Pivotal Moment: Building Back Safer

The key lesson from last year's fires is clear: most homes ignite from windblown embers, not towering flames. These embers can travel miles and ignite anything combustible near a home. That is why wildfire experts overwhelmingly agree on the importance of maintaining a noncombustible 0-5 foot "Zone 0" ignition zone.

A Call for Leadership on Zone 0: Build Long-Term Resilience & Improve Insurance Availability and Affordability

"We must adapt and learn to live with wildfire by bending down the risk curve and lowering losses," Collins said. "When community resilience is done at scale, this positively impacts the availability and affordability of insurance."

California has lost more than 36,000 structures to wildfire in the last decade, and 1.3 million homes statewide remain at high risk. Climate change and increased building in high-risk areas are accelerating the threat. Insurers are urging state and local leaders to adopt strong Zone 0 regulations and expand communitywide mitigation programs to protect residents, stabilize the insurance market, and reduce long-term wildfire risk.

"Los Angeles-and all of California-have the opportunity to lead the nation in wildfire resilience," Collins said. "We can turn this tragedy into long term resiliency, but only if we act decisively. This is our moment to build back safer."

APCIA supports the adoption of strong, science-based Zone 0 standards now under consideration by CAL FIRE and the State Board of Forestry. These standards would require:

• No vegetation or combustible materials within 5 feet of home (Option 1)
• Replace bark with stone within 5 feet of home
• Ember resistant home improvements such as 1/8-inch vent screens
• Class A fire rated roofs
• Replacement of wood fencing touching a home with metal sections
• Clearance of debris from gutters, decks, and roofs

"Small actions make a substantial difference in a home's ability to survive an ember storm," said Collins. "Insurers remain committed to supporting Los Angeles policyholders throughout the rebuilding process and advocating for the mitigation strategies needed to safeguard all California communities. Increasing resilience will help make property insurance more available and affordable for consumers."

Restoring the California Insurance Market

"We appreciate the California Department of Insurance for adopting the Sustainable Insurance Strategy (SIS), an important step toward stabilizing California's insurance market," said Collins." Insurers remain committed to serving Californians, but it's important to recognize that these reforms were adopted in December 2024 and regulatory implementation just took effect in August. Insurers have begun to submit filings leveraging the reforms and it will take time to implement them-especially as the market absorbs massive losses from the recent January wildfires, The SIS is a meaningful step forward, but delays in the rate review process remain a major barrier to restoring balance. Streamlining that process is essential to making real progress. Insurers will continue working with the Department and Legislature to expand coverage options and rebuild a competitive market."