California’s $21B Wildfire Fund Faces Collapse Over LA’s Devastating Eaton Fire
Wildfire Catastrophe Unfolds: Lives Lost, Billions at Stake
California’s worst fears may be coming true as the state’s $21 billion wildfire insurance fund teeters on the edge of insolvency. If Southern California Edison (SCE) is found responsible for igniting January’s deadly Eaton Fire in Los Angeles, the entire fund — created to stabilize the state’s utility sector post-disaster — could be wiped out.
The fire, which killed 17 people and destroyed over 9,000 structures, has triggered an avalanche of insurance claims and lawsuits. Current estimates suggest insured losses from the Eaton and Palisades fires could total between $20 billion and $45 billion, according to Moody’s, Milliman, and UCLA’s Anderson School of Management.
The Eaton Fire alone may cost $15.2 billion, according to Ver...