With estimates of the economic damage running as high as $275 billion, the Los Angeles fires are "shaping up to be one of the most expensive calamities on American soil", said Parintha R. Sastry and Ishita Sen in The New York Times. And it's not all down to bad luck. This is a notoriously fire-prone area, and climate change is exacerbating the problem. Why, then, have people continued setting up home there?
One big reason is that they've been shielded from the true financial costs of doing so. For decades, California has imposed price controls to keep home insurance premiums artificially low. These prevented companies from, among other things, using catastrophe modelling to predict future risk; they could only assess premiums based on historical data. In response to ever more insurers fleeing the state, Californian lawmakers recently relaxed some of these controls, but insurance prices still don't truly reflect the level of risk.
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The worst wildfires in California historyThe Explainer Total damage from the ongoing fires could be up to $150 billion, according to AccuWeather
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What happens to wildlife during a wildfire?The explainer Flames also affect the flora and fauna
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Death toll rises in LA fires as wind lull allows progressSpeed Read At least 24 people have died and 100,000 people are under mandatory evacuation orders
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Biden cancels Italy trip as raging LA fires spreadSpeed Read The majority of the fires remain 0% contained
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Fast-spreading Los Angeles wildfires spark panicSpeed Read About 30,000 people were under an evacuation order as the inferno spread
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Unchecked wildfire sears Southern CaliforniaSpeed Read Firefighting crews continue to battle wildfires that have scorched thousands of acres in Los Angeles and San Bernardino counties amid heat wave
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The economic cost of the wildfire seasonThe Explainer Wildfires are exacting an 'eye-popping' financial toll for communities in fire-prone areas and beyond
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England's great parakeet invasionThe Explainer How did a parrot from the Himalayas become a common sight in southeast England?
