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California fires expose a $1 trillion hole in US home insurance

The wildfires terrorising Los Angeles this week have been like something out of a movie: vast, fast-moving, unpredictable, merciless. Their scope and nature have surprised even fire-jaded California. They are also evidence of the sort of consequences that can be expected as the planet continues to heat up, consequences for which traditional risk-management tools – like, say, home insurance – are increasingly obsolete.

The fires didn’t even exist on Tuesday morning. The only hint of what was to come were forecasts for some of the strongest and most dangerous Santa Ana winds on record to barrel out of the Great Basin and into Southern California.

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    Original URL: https://www.afr.com/property/residential/california-fires-expose-a-1-trillion-hole-in-us-home-insurance-20250109-p5l36c