• California was already in the midst of an insurance crisis before Tuesday's fires
• Major insurers dropped property policies for residents, including in Pacific Palisades
• Experts predict premiums will continue to rise for the whole region and it may get harder to secure a loan.

Even before this week's wildfires in Los Angeles County, California was in the midst of an insurance crisis spurred by the threat of intensifying wildfires and other extreme weather events.

Since 2022, major insurance companies have either stopped writing new policies, pulled back coverage, or dropped residents altogether. Last March, State Farm, the state's largest home insurance provider, dropped 72,000 property policies in the state, including 69% of policies in Pacific Palisades.

This week's fires will only worsen the situation, insurance and real estate experts told Business Insider.

"It's like we took two steps forward, then we just took five back," California insurance agency owner Nick Ramirez told BI.

Some progress had been made in recent months, Ramirez said. In August, Allstate agreed to temporarily halt mass non-renewals in California, although with a 34% increase in premiums, the LA Times reported.

That progress now feels in jeopardy, since multiple fires blazed through Los Angeles County neighborhoods on Tuesday, razing Pacific Palisades, Altadena, and Hurst, forcing over 30,000 residents to evacuate, and claiming two lives.

Ramirez and other experts explained how the destruction will likely exacerbate the crisis, jeopardizing the future of home ownership in California — even in regions outside of wildfire zones.

Insurance will continue to get more expensive for the whole region

For the lucky few who have secured insurance coverage in California in recent years, it's come with sticker shock.

"I've seen numbers go up, 200%, 300%, even 500% in a year," Ramirez said.

Now, even if your home is not directly in an area at risk of wildfire, the entire regions surrounding these zones will feel the increased heat of the situation.

Darren Nix, CEO of Steadily Insurance Company, explained that premiums will likely continue to rise for everyone, even if they are far from harm's way. Residents of zones far away from the most risk of wildfire are still likely to see 15-20% annual increases in premiums, Nix explained.

"In order to come out ahead for California as a whole, it is going to mean that over time, rates are going to go up, even for the folks that are not wildfire exposed," Nix said.

Residents seeking new policies throughout the region will also likely face more scrutiny when shopping around for policies.

"Each application in California is going to be getting triple scrutinized for how close they are to the nearest green space they are," Nix said.

It may get harder for homebuyers to secure loans

The downstream impacts of unaffordable insurance options is it may make it harder to get a mortgage, Kevin Herzberg, a Los Angeles-based mortgage consultant, told Business Insider.

Mortgage lenders won't lend on a house that doesn't have some type of insurance, Herzberg explained, and if the consumer can't afford the insurance, the home won't sell.

"As insurance becomes less available or more expensive, fewer people qualify for loans," he said.

Already this year 13% of realtors in California said in a recent survey they had sales transactions canceled because insurance was unaffordable or unavailable, Newsweek reported. That was double the 6.9% reported the previous year.

Californians scrambling to find new coverage have flocked to the state-run backup option FAIR, with active policies on residential properties jumping 41% from 320,518 in September 2023 to 451,799 in September 2024.

"They were supposed to be the insurer of last resort," Ramirez said. Now, they're the becoming one of the most important.

• Multiple blazes raged out of control in Los Angeles and Southern California Wednesday.
• Business Insider spoke with three residents about their experiences fleeing the scene.
• They called it terrifying, devastating, and apocalyptic.

The fires storming through Los Angeles and Southern California have left over 1,000 structures burned, at least two people dead, and tens of thousands of others displaced as they heed mandatory evacuation orders.

Business Insider spoke with three people who encountered the devastating impacts of the blaze firsthand. Their words have been edited for length and clarity.

'I don't know where everyone in our community is going to go'

Alisa Wolfson, a journalist, lives in the Palisades with her husband and two daughters, ages 7 and 10. They evacuated to a friend's home and then the Beverly Hilton before losing their home in the fire.

My husband and I both grew up in the Palisades and bought our home there in 2018. My mom's still there, too. We love our neighborhood, and there's a strong sense of community. There's a reason that it's impossible to buy in and that Bill Hader lives on our street. It was like a storybook — too good to be true.

I was sitting in my home office Tuesday looking out the window when a girlfriend called me to see if I had heard that there was a fire nearby. I looked up and saw a little thing of smoke, but I thought we'd be fine. Within 10 minutes, it grew beyond what I ever thought was possible. I went out to the street and could see that the nearby hillside was engulfed in flames. I called my husband at work and said, "You need to come home right now."

Very quickly, it turned into all of our neighbors on the street throwing things in their cars and driving off. It was terrifying. I grabbed our dog Gus and just as I was leaving, my neighbor across the street called and asked me to pick up her dog since she wasn't home. I went back into my house, got her key, and put her dog in the car.

A friend whose daughter goes to the same school as mine picked our girls up, and we met at her house, which was just outside the evacuation zone. We put all the dogs in the yard, and the girls played with their friends. I thought we'd just camp out for a few hours — but then things started to look terrible really quickly. Around 1 p.m., my husband borrowed our friend's e-bike and rode to our house to see if there was anything he could do and to grab a few things left behind. He saw tons of smoke, firemen, and the hillsides burning — it was really wild.

We stayed at our friend's house until they lost power, then checked into the Beverly Hilton. It was like all of West Los Angeles had descended upon the hotel — it took 40 minutes just to pull into the driveway.

We paid $560 for the night for a room with two beds, which doesn't seem outrageous to me. They've been wonderful here. They greeted everyone in line, handing out water bottles. Henry Winkler was checking in ahead of me, and Cisco Adler's here. It's like a real LA tale. My mom is staying in the room next door with her dog — the number of dogs in this hotel right now is insane.

The front page of the LA Times featured a house on our street in flames. The images looked apocalyptic. Our daughters kept asking, "Is our house safe?" but we weren't sure.

This afternoon, a neighbor who rode his bike into the neighborhood confirmed it: We've lost our home. Our neighbors have been texting that they have too. I'm utterly devastated and in a state of shock, barely functional. I haven't been able to break the news to my daughters yet. I don't know where everyone in our community is going to go. Our entire town appears to be gone.

This isn't something that should be happening. People need to elect local officials who really care about the climate and do what's needed to prepare for or prevent events like this. Last night, my husband asked me, "Where do you think you want to spend the rest of your life?" We have family in Connecticut, and last night it crossed my mind — do we just bail and start fresh? I don't know. For now, we're just taking it hour by hour.

'It was like the apocalypse, in a way''

Katie Cassidy, an actor and close friend of Alisa Wolfson, lives three minutes away from Wolfson in the Palisades. On Tuesday afternoon, she and her significant other evacuated to her parents' home in another part of Los Angeles.

My significant other, who is Canadian, woke up around 10:15 a.m. and said, "Oh my gosh, this weather is so beautiful, and the wind is so nice," and I was like, "Oh no, wind is not good." I was born and raised in Los Angeles, so I'm aware of fires and the Santa Ana winds, especially around this time of year.

I went outside and smelled smoke. My close friend Alisa lives up the street, so I called to check on her and her family. Moments later, firetruck after firetruck and helicopter after helicopter passed by. My gut knew that this was not good. I started to pack away our things and valuables.

We kept our eye on the situation. There were more helicopters and more smoke. The sky turned darker and red, and we started seeing ashes.

Around noon, my partner looked out the window and said, "Babe, there are people running down the streets with their suitcases and bags and kids and strollers." We threw everything in the car, brought our cats and dog, and left.

Luckily, my parents live in another part of Los Angeles, so we came here. We later saw on the news that the people we saw running down the street were people who'd abandoned their cars on Sunset Boulevard because they were stuck in traffic. It was really terrifying and devastating to see; it was like the apocalypse, in a way.

I wish I would've left earlier. I was trying to get a better gauge of what was going on and trying not to panic. People need to be aware and not be stubborn and stay in their homes thinking it'll never happen because it will; it's happened to me. I don't know if our house is still there, but if it isn't, it'll be the second home I've lived in that has burned to the ground in LA; my childhood home in Bell Canyon burned down in a fire some years after we sold it.

Even though my parents' place is safe at the moment, the winds can change. Our bags are packed, and we're ready to move with our fur babies when and if need be. At the end of the day, we're just grateful to be alive.

'There's only so much you can take'

Adam Wood, a 45-year-old film producer, director, and editor, lives in North Hollywood and helped his friend evacuate from Pasadena early Wednesday morning.

Everyone was aware there was a fire building in Altadena around late Tuesday afternoon, and we've had issues up there before. My friend has an urban farm up there that houses rabbits, pigs, and chickens. My thoughts and concerns were with him — if he had to get out, he'd need as much help as possible. I went over there in the early evening Tuesday to help.

At first, evacuators didn't think the fire would come down toward where we were, but at around 2:45 in the morning, we got the evacuation order through an alert on the phone. Then a fire official knocked on the door, and we had about half an hour to pack as much as we could, including a young pig, into the back of my friend's Tesla.

Thankfully, we got everyone out, and all the animals got out OK. My friend had already packed his documents and anything of physical value in his wife's SUV and his Tesla. The chickens were huddled together in one cage, and the rabbits were also hutched in one of the cars.

His wife and two kids were also there, and they all took a bunch of personal items, a suitcase each, and some computers. Of course, there's only so much you can take. The cars were jam-packed, but much of their personal property had to be left behind.

As we drove away, it was pretty hectic given that it was a rush and the whole neighborhood was also leaving at the same time. Thankfully it wasn't replicable to the scenes in the Palisades where people abandoned their cars. But the glow of the fires was visible on the horizon, and smoke filled the air.

He lives in a very nice house, and God knows if that still exists.

Now, there is the Woodley fire, which is closer to my home, so we are keeping a watchful eye on my place and hoping we won't need to evacuate ourselves.

• Wildfires have broken out in Los Angeles and are raging through the Pacific Palisades neighborhood.
• Mark Hamill was among the thousands who evacuated, while other stars, like Paris Hilton and Billy Crystal, have lost their homes.
• The average house price in the northern LA area is $4.5 million, per Realtor.com data.

Wildfires in Los Angeles are tearing through the Pacific Palisades neighborhood, home to A-list actors, including Ben Affleck — who bought his $20.5 million mansion there in July.

Other celebrities, including Tom Hanks, Reese Witherspoon, Michael Keaton, Adam Sandler, Miles Teller, and Eugene Levy, also live in the neighborhood.

The area, located between Santa Monica and Malibu in northern Los Angeles, is home to some of the country's most expensive real estate. The average house price is $4.5 million, according to Realtor.com data.

The fire started on Tuesday in the Pacific Palisades before spreading west toward the Malibu stretch of the Pacific Coast Highway. On Wednesday, the city of Malibu issued a statement on X advising residents to prepare to evacuate.

Among the at least 130,000 LA residents asked to evacuate their homes because of the fire was the "Star Wars" actor Mark Hamill. He said on Instagram that he had left his Malibu home on Tuesday with his wife, Marilou, and their dog, Trixie. He described it as the "most horrific fire since '93."

"Evacuated Malibu so last-minute there were small fires on both sides of the road as we approached PCH," he wrote.

Levy told The Los Angeles Times on Tuesday that he got stuck while trying to leave the neighborhood. "The smoke looked pretty black and intense over Temescal Canyon," Levy said. "I couldn't see any flames but the smoke was very dark."

Chet Hanks, the son of actors Tom Hanks and Rita Wilson, also mentioned the fire on Tuesday.

"The neighborhood I grew up in is burning to the ground rn. Pray for the Palisades," he wrote in an Instagram Stories post.

On Wednesday morning, "Halloween" star Jamie Lee Curtis said on Instagram that she was safe, but her home in West LA might not be.

"My community and possibly my home is on fire," Curtis wrote. "My family is safe. Many of my friends will lose their homes. Many other communities as well. There are so many conflicting reports. With all the technology there seems to be very little information. Please post facts! It will help those wondering!"

The Oscar-nominated actor James Woods said on X that he and his family safely evacuated from the Palisades but didn't know whether his home "is still standing."

"The Hills" stars Heidi Montag and Spencer Pratt also lost their home in the fire.

"I'm so sad our house is gone. I wish I could have gone back and got more," Montag said as she broke down crying in a video she posted on TikTok on Wednesday.

TMZ also published footage of Adam Brody and Leighton Meester's home in flames, as well as a photo of Anna Faris' home in ashes.

The songwriter Diane Warren, a 15-time Oscar nominee who has worked with stars like Beyoncé and Taylor Swift, shared on Instagram that her beach house of nearly 30 years was likely gone.

"It looks like it was lost in the fire last nite. There's a rainbow shining on it which I'm taking as a sign of hope for all creatures who have been affected by this tragedy," Warren wrote. "The animals and the rescue ranch are OK tho which is the most important thing. Stay safe everyone."

Kate Beckinsale also wrote in an Instagram post on Wednesday that "the whole of the Palisades being destroyed is unthinkably horrific."

"My daughter and I lived there for most of her childhood and most of her childhood is gone," Beckinsale wrote.

The "Serendipity" actor shared several other posts, including one thanking local firefighters and another sharing information about assembling an emergency bag.

The Palisades Charter High School also burned down, according to The Hollywood Reporter. The campus was used for films including "Carrie," "Freaky Friday," "Project X," and MTV's "Teen Wolf" TV series.

The premieres for "Wolf Man" and "Unstoppable," scheduled for Tuesday, were canceled.

On Wednesday, Paris Hilton also took to Instagram to share that she was "heartbroken beyond words" to learn that her Malibu home had been destroyed in the fire.

"Sitting with my family, watching the news, and seeing our home in Malibu burn to the ground on live TV is something no one should ever have to experience," Hilton wrote in her post. "This home was where we built so many precious memories."

Although the loss felt "overwhelming," the celebrity said she was grateful that her family and pets are safe.

Even Billy Crystal's home, where he'd been living with his family for 46 years, was razed to the ground.

"We raised our children and grandchildren here. Every inch of our house was filled with love. Beautiful memories that can't be taken away. We are heartbroken of course but with the love of our children and friends we will get through this," Crystal said in a statement to People.

"The Pacific Palisades is a resilient community of amazing people and we know in time it will rise again. It is our home," the actor's statement continued.

The fire that started on Tuesday spread quickly thanks to the Santa Ana winds, which created up to 80 mph gusts. The drought in Southern California also exacerbated the situation, creating dangerously dry conditions.

To the east of the Palisades fire, the Eaton fire is impacting the Altadena-Pasadena region.

Actor and singer Mandy Moore said in an Instagram story posted on Tuesday that she was among the residents ordered to evacuate. By Wednesday, the singer said in a follow-up story that she was unsure if her home "made it."

"Honestly, I'm in shock and feeling numb for all so many have lost, including my family," she wrote in an Instagram post. "My children's school is gone. Our favorite restaurants, leveled. So many friends and loved ones have lost everything too."

'It's fire year'

Wildfires in the western US have been steadily growing bigger and more severe for decades, while the time of heightened risk known as "fire season" has been getting longer each year.

A paper published in 2023 by researchers from the University of California, Irvine, found the human-caused climate crisis is the "major driver" for the state's increase in wildfires over the last quarter century.

"November, December, now January — there's no fire season, it's fire year. It's year-round," California Gov. Gavin Newsom said at a press conference on Tuesday.

Back in 2018, the Woolsey Fire burned almost 100,000 acres of land in California, affecting famous Malibu residents like Lady Gaga, Gerard Butler, Miley Cyrus, and several members of the Kardashian family. In fact, Kim Kardashian and her then-husband Kanye West were widely criticized for hiring private firefighters to protect their $60 million home in Hidden Hills.

This is a developing story. Check back for updates.

• Multiple major fires are tearing through parts of the Los Angeles area.
• The Palisades fire has burned through over 15,000 acres as of Wednesday.
• A new fire broke out Wednesday evening in the Hollywood Hills.

Emergency personnel across the Los Angeles area are battling multiple major fires.

Officials have ordered over 100,000 people to evacuate, five people have been reported dead, and over a thousand structures have been burned.

Images of people escaping their homes, abandoning their cars, and searching for safe harbor careened across television and social media on Wednesday. Planes dropped water on huge flames whipping through canyons and mountain passes.

And it's showing little sign of slowing down, officials said. Dry conditions combined with high wind gusts of more than 90 miles per hour have helped fuel the multiple fires burning around the metropolitan area.

A total of five separate fires are now sweeping through parts of the region in and around Los Angeles after a new fire — called the Sunset Fire — broke out in the Hollywood Hills, near the iconic Hollywood sign, on Wednesday evening, forcing the LA fire chief to leave in the middle of a press conference. It has so far burned 10 acres as flames could be seen rising from the hills against the night sky.

Los Angeles Mayor Bass said during a press conference Wednesday evening that residents may receive more evacuation orders as wind conditions continue to be "strong and erratic."

Ride-hailing companies such as Uber and Lyft have offered free rides to evacuation centers for Los Angeles residents. SpaceX CEO Elon Musk said on Thursday that his company will be providing "free Starlink terminals to affected areas."

Los Angeles schools would be closed on Thursday, impacting more than half a million students, LA Unified School District Superintendent Alberto Carvalho announced Wednesday.

The longest-burning of the now five active fires in Los Angeles County, the Palisades Fire, has burned over 15,000 acres, official said.

"Our entire town appears to be gone," one Palisades resident told Business Insider.

The Eaton fire, impacting the Pasadena-Altadena region, has burned about 10,600 acres and continues to grow with zero percent containment, LA County Fire Chief Anthony Marrone said at a press conference. The Hurst fire, in the north of the region near San Fernando, covered over 700 acres.

The fourth fire, the Woodley fire in the Sepulveda Basin, has burned 30 acres. Chief of Los Angeles Fire Department Kristin Crowley said that fire was under control as of Wednesday evening.

Evacuation orders and warnings continue to be issued throughout Wednesday evening, including a notice for residents living near the Hollywood Hills.

Pasadena Fire Chief Chad Augustin said Wednesday afternoon that he hoped milder wind conditions overnight would allow for more aircraft and additional resources to be directed at the Eaton fire.

"That's what gives me confidence that we're going to get a handle on this fire," Augustin said.

By Wednesday afternoon, over 100,000 people living near the Eaton fire received evacuation orders, a representative for CalFire told BI.

Five people have died as a result of the Eaton fire, the spokesperson said. Two firefighters were reported to have minor injuries.

Some 377,000 Californians, meanwhile, were also out of power as of Wednesday afternoon, according to a tracking site.

California Gov. Gavin Newsom declared a state of emergency on Tuesday, and announced that the state had secured federal assistance from FEMA to support the fire response.

"There's no fire season. It's fire year," Newsom said at a press conference on Tuesday afternoon, noting other fires California has faced in recent months, including the Franklin and Mountain fires. "It's year-round."

Historic windstorm is 'worst possible scenario'

Officials have not yet determined how the fires started, but they erupted during a high-risk major windstorm. Combined with low humidity and dry vegetation in the region, the winds created a perfect storm for fire ignition.

The high winds were "making it extremely challenging" for firefighters on the scene, Los Angeles City Fire Chief Kristin M. Crowley said, making them unable to air-drop water on the fires Wednesday morning. But by the afternoon, water-dropping aircraft had returned to the skies.

The National Weather Service called the windstorm "life-threatening and destructive" and warned that these could be the strongest north winds in 14 years.

Just the Palisades fire alone has already become the most destructive fire ever to hit Los Angeles County, CNN reported, citing CalFire data.

The weather service urged residents to be ready to evacuate, as such winds can rapidly spread any fire that breaks out.

"This is pretty much the worst possible scenario for a firefight," David Ortiz of the LAFD told local news station KTLA.

Tourist landmarks close as smoke chokes LA

The Los Angeles area is a huge tourist draw, attracting nearly 50 million visitors a year.

The fires forced some Los Angeles-area landmarks to close, including the Hollywood sign, the Los Angeles Zoo, Universal Studios Hollywood and Universal CityWalk, and the Griffith Observatory.

Even miles from the fires in South Los Angeles, smoke reduced visibility to just one block, officials said.

Airbnb told CNN that it would be allowing refunds for bookings in areas affected by the wildfires, following a viral social media post from a customer who said the company refused to offer her a refund.

A National Hockey League game between the Los Angeles Kings and the Calgary Flames, scheduled Wednesday night at Crypto.com arena, was postponed. The 30th Annual Critics Choice Awards, set for Sunday night, were also rescheduled, according to The Hollywood Reporter.

Disneyland, over 30 miles from the nearest fire, was still open on Wednesday.

Meanwhile, police also made some arrests for looting as some people tried to steal in the areas affected by the fires, Los Angeles County Sheriff Robert Luna said at Wednesday morning's press conference.

Evacuees abandoned cars as traffic stalled

Palisades Drive, the major road out of the Pacific Palisades neighborhood, was already packed with slow-moving lines of cars shortly after noon Tuesday, as people evacuated beneath a smoky haze and bright-orange flames licked the hillside in the distance, shown live on ABC7.

CalFire reported that the fire was on both sides of Palisades Drive.

ABC7 spoke to multiple people who were evacuating on foot, including some who had abandoned their cars on the road.

One resident told the news channel that "a whole bunch of neighbors" were stuck in their homes on Palisades Drive.

Jonathan Vigliotti, a CBS News correspondent who was on the ground as a neighborhood went up in flames, said on X that there was "mass panic in the streets."