What is the current situation with homeowners insurance in high-risk fire areas of Los Angeles?

Homeowners insurance rates have skyrocketed in the wake of the 2025 wildfires, with some residents now facing annual premiums of close to six figures. This has made it difficult for some, especially older residents on fixed incomes, to afford coverage, and has also deterred potential home buyers.

Where are wealthy Angelenos looking to move to avoid high insurance costs?

Some affluent Angelenos are considering moving to other states with lower insurance rates, such as Florida, Nevada, Tennessee, Texas, or Wyoming, in search of more affordable housing options.

Home / Disasters and Accidents / Wealthy Angelenos Reel from Devastating Wildfires, Struggle with Skyrocketing Insurance Costs

Wealthy Angelenos Reel from Devastating Wildfires, Struggle with Skyrocketing Insurance Costs

Q: How did the 2025 Los Angeles wildfires impact wealthy residents?

The 2025 Los Angeles wildfires destroyed over 12,000 homes, with the majority belonging to celebrities and other industry insiders. The median home value lost was $3.7 million, and 79 homes were worth $10 million or more.

12 Nov

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Summary

Majority of 12,048 homes destroyed in LA fires belonged to celebrities and industry insiders
Median home value lost was $3.7 million, with 79 homes worth $10 million or more
Homeowners insurance rates have tripled or quadrupled, pricing out some residents

Wealthy Angelenos Reel from Devastating Wildfires, Struggle with Skyrocketing Insurance Costs

As of November 2025, the Los Angeles area has been reeling from the aftermath of devastating wildfires that swept through the region earlier this year. The fires destroyed a staggering 12,048 residential properties, with the majority of these homes belonging to celebrities and other industry insiders.

The impact of the fires has been particularly acute for the wealthy, as the median value of the homes lost in the Palisades Fire was $3.7 million, and 79 of them were worth $10 million or more. Even in the Eaton Fire, which affected more middle-class and working-class neighborhoods, the median home value was still a substantial $1.2 million, well above the $868,000 median for the county.