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.

While the loss of these homes has been devastating for their owners, regardless of their wealth, the aftermath has presented unique challenges for the affluent. One of the biggest problems they now face is the skyrocketing cost of homeowners insurance. Rates have tripled or quadrupled in the wake of the fires, with some residents now facing annual premiums of close to six figures.

This has created a difficult situation for many, especially older residents on fixed incomes who can no longer afford the steep insurance costs. Even those who can pay the high premiums are finding it difficult to sell their homes, as potential buyers are reluctant to take on the burden of such expensive coverage.