How much damage will the Los Angeles fires do to homes?

The fires raging in the Greater Los Angeles region are highlighting the tinder box the pricey homes in that region represent. 

Corelogic estimates over 456,000 homes in the Los Angeles area and Riverside metro, east of the city, are at moderate or greater risk of wildfire damage that could equate to $300 billion in reconstruction cost value. That estimate is not specific to the three blazes that erupted this week, which have already engulfed 45 square miles, the Associated Press reported. 

Around 2,000 homes and other structures have been destroyed by flames, and five deaths have been recorded. The fires began Tuesday morning with a blaze in Pacific Palisades, a wealthy coastal Los Angeles neighborhood between Santa Monica and Malibu. The area had been drying since seasonal rains late last year, said Tom Jeffrey, Corelogic senior hazard scientist. 

"The Santa Ana winds that are currently driving these fires occur periodically, but the most recent winds are exceptionally strong, with reported speeds of 50 to 60 mph and greater," he said in a press release. "This not only drives the fires and embers but also inhibits flying the tanker aircraft and helicopters used to suppress the fire."

There are over 17,000 homes in the Palisades fire perimeter with a median home value of $2 million, according to public figures gathered by the AP. The Eaton fire near Pasadena, which devastated the Altadena community, has 11,100 homes in its perimeter with median home values between $651,000 and $2 million. 

The Hurst Fire northwest of Los Angeles meanwhile has charred 671 acres and has 4,315 homes inside its fire perimeter, the AP said. That blaze is 10% contained, while the Palisades and Eaton fires remain 0% contained. 

Other preliminary damage estimates have emerged, with JP Morgan estimating a $10 billion loss alone in the Palisades. Accuweather also suggested between $52 billion and $57 billion in damages and economic loss from all of the fires. 

This week's destruction is likely to include some at-risk homes identified by Corelogic. The real estate analytics platform said many at-risk homes are in the wildlife-urban interface, where properties and infrastructure sit near undeveloped vegetation. 

The firm's wildfire risk rating, which ranges from moderate to very-high risk, analyzes each parcel on its slope, fuel, drought, winds and other factors. In Los Angeles alone, 71,312 homes have a very high risk of wildfire damage, with a combined $60.3 billion in reconstruction value. 

The coveted California housing market at-large has over 1.2 million homes at risk of wildfire damage, Corelogic reported last summer. Nationwide, 2.6 million homes across Western states have a combined total reconstruction value, in a worst-case scenario, of $1.3 trillion. 

The fires also raise questions about homeowners insurance in California, which was already strained. Leading insurers have been lessening their exposure in the Golden State in the past few years. Homeowners in the areas affected by blazes are also already paying well into the thousands of dollars a year for standard coverage, according to a price comparison tool by the state's Department of Insurance. 

The residual effects of the fires on the mortgage market are yet to be assessed, but the industry is beginning to respond. The Mortgage Bankers Association in a statement Thursday offered condolences, and a disaster guide for homeowners which suggests, among other actions, contacting their mortgage servicer.