09:48 AM EST, 01/23/2025 (MT Newswires) -- Insured losses from the Palisades and Eaton wildfires in California will be close to $28 billion, the catastrophe risk modelling firm Karen Clark & Company said Thursday.

The Palisades fire burned roughly 24,000 acres while the Eaton fire burned more than 14,000 acres, the firm said.

The estimate of insured losses includes property damage, smoke damage, displacement costs and other potential costs, the firm said.

"California authorities have a strong incentive to stabilize the insurance market so there will likely be efforts in place to expedite the rebuilding process, control cost increases, and avoid saddling insurers with excess and uncovered losses," Karen Clark said.