The wildfires in Los Angeles have caused damage estimated between $250 and $275 billion, with significant costs for local, federal governments, insurers, and residents.
As of January 14, 24 people have died, over 12,300 structures have been destroyed, and more than 40,000 acres have burned in LA.
High winds expected this week are making it harder for firefighters to contain the ongoing blazes.
The total cost of the wildfires will not be clear until long after the fires are under control, and rebuilding efforts could take years.
The Federal Emergency Management Agency (FEMA) is offering immediate aid, including hazard mitigation, shelters, and debris removal, though aid could take months or years to reach local communities.
President Biden announced that the federal government will cover 100% of fire response costs and provide a $770 stimulus check to affected residents.
Congress has yet to agree on an aid package, and it remains unclear what disaster relief plans will be under President-elect Donald Trump’s administration.
FEMA provides short-term help, but it’s not designed to fully cover the long-term costs of rebuilding homes and businesses.
Many homeowners in LA are underinsured or lack coverage, as companies like State Farm and Farmers restrict policies in high-risk areas.
LA residents will face higher costs in areas like construction, rent, lumber, and other materials, as demand surges and supply chains are disrupted.