A series of wildfires in Los Angeles County have caused widespread devastation in California, including at least 24 deaths and the destruction of more than 12,000 homes and structures. Thousands of residents have been evacuated, and the danger isn’t over yet.
Some estimates have put the cost of the damage and economic loss at between A$400 billion and A$450 billion, of which only A$32 billion is insured.
This is a stark illustration of the insurance protection gap – the difference between insured and uninsured losses. As California rebuilds, it means the bill for uninsured losses will fall on the property owners themselves and public funds.
