As Southern California still reels from January’s catastrophic wildfires, the economic damage has surged to $250 billion, far exceeding initial estimates. But that figure doesn’t account for damage incurred by residents whose homes and businesses were reduced to rubble and ash.

The Palisades and Eaton fires alone will result in up to $45 billion in insurance payouts to homeowners and businesses, according to data analytics firm CoreLogic. Of course, that only applies to residents who had insurance in the first place.

In the wake of an extreme weather event, residents typically can rely on insurance claims to repair damaged property —but the increasing frequency and severity of fires, storms, floods, and other occurrences complicate coverage.

The National Oceanic and Atmospheric Administration in 2023 documented 28 separate billion-dollar climate and weather disasters across the U.S., a number that outpaced any prior year on record. Climate change is the main culprit fueling these disasters’ increasing frequency and intensity. By September 2023, NOAA reported that the U.S. had already racked up a staggering $57.6 billion in damages for that year.

Insurance companies have responded with higher rates to cover costs, culminating in overall higher insurance fees for customers. In June, the Bipartisan Policy Center reported that property insurance rates have increased every quarter since the end of 2017. And car insurance isn’t faring any better, either: According to the Washington Post, blizzards, tornadoes, and hailstorms led to a 52% increase in auto insurance premiums in Colorado from 2013 to 2023, and hurricanes are responsible for an 88% jump in Florida over the same period.

Cheapinsurance.com used data from NOAA to analyze the rising number of billion-dollar disasters and their implications for the insurance marketplace in the U.S.