Finance & economics | Up in flames

The Los Angeles fires will be extraordinarily expensive

They will also expose California’s faulty insurance market

A person turns on a garden hose in an effort to save a neighboring home from catching fire during the Eaton Fire in Altadena, California, USA.
Photograph: Getty Images

The fires that are burning through southern California may be shocking, but they are not surprising. Anyone who lived in the Hollywood Hills was aware of the danger. And for anyone who forgot, their annual insurance renewal provided a reminder at considerable expense. Such moments occasionally dampened the mood in the City of Angels. Now the promised catastrophe has arrived.

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