7 Data-Backed Trends Showing Why Wildfire Litigation is Rising in the U.S.

Wildfires in the U.S. are not just a single natural catastrophe; they are a systemic economic and legal phenomenon. Entire towns are swept away, infrastructure fails, insurers flee high-risk markets, and more complicated, multi-party lawsuits appear before the courts.

According to data from the National Interagency Fire Center (NIFC), since 2000, the U.S. has been reporting above 7 million acres of fire per year, as compared to 3 to 4 million acres of fire per year in the 1980s. More than 10.1 million acres were burned in 2020 alone, and it was one of the biggest wildfire years in the history of the U.S.

This environmental impact is reflected in economic harm as well. According to the National Oceanic and Atmospheric Administration (NOAA), billion-dollar disasters involving wildfires have become more common since 2015. Global reinsurers report that peak years of tens of billions of dollars of insured wildfire losses are now a regular occurrence.

With the increasing fire frequency, number of acres burned, and the risk of wildfire posed by climate, lawsuits have increased accordingly. This article explores seven supportable trends that illustrate why wildfire litigation is increasing in the U.S.

Quick Answer

Wildfire litigation is rising in the U.S. because fire frequency, burned acreage, insured losses, and infrastructure-related liability have all increased significantly over the past two decades. Utility equipment exposure, climate attribution science, insurance disputes, and plaintiff-friendly state laws have transformed wildfire lawsuits into large-scale, multi-party litigation events.

Key Takeaways

• Annual acres burned are roughly double the 1980s average.
• Utilities face strict liability exposure in some states, especially California.
• Insured wildfire losses regularly reach tens of billions in peak years.
• Climate science is increasingly used as evidence in court.
• Public awareness and legal access have increased claim filings.

Trend 1: Wildfire Frequency and More Area of Burns

Summary: Annual wildfire acreage in the U.S. has roughly doubled since the 1980s, expanding financial and legal exposure.

The more the fires, the more the claims, the more the litigation.

According to NIFC statistics, the amount of acreage burned per year is about twice what it was on average in the 1980s. Financial exposure has been increased by the growth of the wildland-urban interface (WUI), as residential land clashes with undeveloped land.

The western states of California, Oregon, and Colorado have been reporting some of the most destructive and large fires in the country.

Important Contributory Factors

• Extended drought conditions
• The increase in average temperatures
• Additional residential crowding in high-risk areas
• Climate change in vegetation dryness

Legal Implications

With increasing frequencies and areas of fire, the litigation of property damage becomes unavoidable and more complicated.

• Explosive growth in property damage claims
• Masses of plaintiffs in nearby burn areas
• Duplicative litigation between utilities, landowners, contractors, and insurers

Trend 2: Utility Equipment is a Major Cause of Disastrous Fires

Summary: Electrical transmission infrastructure has become a primary ignition source in major U.S. wildfires, concentrating legal liability on utilities.

Liability is clustered about utilities.

According to investigations by the California Department of Forestry and Fire Protection (CAL FIRE), electrical transmission equipment has frequently been identified as a source of ignition in large fire outbreaks.

A clear case study: Pacific Gas and Electric Company (PG&E) petitioned for Chapter 11 bankruptcy in 2019 due to the estimated cost of wildfire liabilities, including equipment-related fires, of USD 30 billion or more, including the 2018 Camp Fire.

The same applies to Hawaiian Electric, which has been subjected to widespread litigation after the Maui wildfires in 2023, during which power lines knocked down are still being investigated.

Why Utilities Face Disproportionate Legal Exposure

• California has an inverse condemnation doctrine that bears strict liability
• Utilities work with high-risk infrastructure in fire-prone land
• Their deep financial resources make them key defendants in mass tort wildfire cases

Legal Implications

Utility liability has emerged as one of the main causes of wildfire litigation.

• Consolidated multi-district litigation
• Class-action certifications
• Massive settlement trusts

Trend 3: Higher Rate of Insured Loss

Summary: Insured wildfire losses have increased significantly, creating coverage gaps and driving insurance-related litigation.

Litigation often arises from insurance deficits.

According to sigma catastrophe reports by Swiss Re, insured losses on wildfires in the U.S. in peak fire years have been USD 12–20+ billion during the last ten years.

At the same time

• Since 2022, major insurers have limited new policies in high-risk zones of California
• Wildfire-prone areas have experienced significant premium spikes
• Homeowners are getting underinsured compared with the cost of rebuilding
  
  

According to NOAA data, the occurrence of wildfire-related billion-dollar disasters has been increasing more often during the last 15 years in comparison to the 1980s and 1990s.

Legal Implications

Homeowners who are underinsured frequently engage in insurance litigation when the money does not cover the actual construction cost.

• Wildfire policy conflicts regarding replacement value calculations
• Bad-faith insurance litigation
• Disputes relating to business interruption and loss-of-use coverage

Trend 4: Climate Evidence as a Source of Legal Evidence

Summary: Climate attribution science is increasingly used to establish foreseeability and negligence in wildfire cases.

Climate science empowers legal cases.

Attribution climate studies have now estimated the impact of rising temperatures and prolonged droughts to show the probability and severity of wildfires.

According to the Intergovernmental Panel on Climate Change (IPCC), man-made warming has made extreme fire weather conditions in some areas of North America more probable.

In litigation, expert witnesses employ

• Fire attribution science
• Temperature trend data
• Drought intensity metrics

Legal Implications

Climate evidence is now a regular part of lawsuits regarding wildfires.

• Increased foreseeability claims
• Higher levels of duty of care on utilities
• Reinforced negligence cases

Trend 5: Complex Property Damage Claims

Summary: Modern wildfire claims extend beyond structural damage and include economic, environmental, and health-related losses.

Fire destroys homes; more so, lives.

Modern wildfire claims include

• Business interruption losses
• Remediation costs in the environment
• Long-term smoke-related health effects
• Moving out and accommodation expenses

The 2018 Camp Fire left almost 19,000 properties burned, forming one of the biggest property damage cases in U.S. history. The scale of modern wildfire losses is also driving a surge in demand for disaster preparedness tools.

Legal Implications

Complex wildfire lawsuits have become much more of a corporate liability case than a simple property lawsuit.

• Intersectoral multi-party claims
• Consolidated mass tort cases
• Longer court hearings
• Increasing settlement figures

Trend 6: Courts and State Laws are Becoming More Plaintiff-Friendly

Summary: Evolving state liability doctrines are lowering procedural barriers and encouraging wildfire litigation.

Legal frameworks are constantly changing. Some states have passed or increased policies that favor plaintiffs in wildfire liability cases.

Key Legal Shifts

• Strict liability standard (California inverse condemnation doctrine)
• Wildfire settlement trusts authorized by the court
• Extended class-action qualification in disaster litigation
• Longer statutes of limitation for certain fire claims

Such wildfire legal precedents limit procedural obstacles and make litigation more practical.

Legal Implications

Structural impacts on litigation growth are exerted by state wildfire liability laws.

• Higher claim filing rate
• Less demanding evidentiary requirements on plaintiffs
• Increased utility and insurer exposure

Trend 7: Improvement in Public Awareness and Legal Access

Summary: Greater access to legal information and specialized representation has increased claim filings after major wildfires.

More victims seek legal recourse.

Victims now have more access to

• Digital legal education
• Specialty wildfire litigation firms
• Unified legal facilities

Websites such as Fire Help Center, a legal resource platform focused on wildfire claims and disaster-related litigation guidance, offer step-by-step advice to wildfire victims, including eligibility requirements, filing timelines, and lawyer referrals.

As centralized wildfire claim resources such as Fire Help Center become more widely used, informational barriers to litigation continue to decline.

Enhanced legal help for wildfire victims lowers informational costs and raises the chances of successful claims for affected homeowners.

Synthesis: Homeowner, Insurer, and Legal Market Implications

Wildfire lawsuits are no longer episodic; now they are institutional.

With annual burned acreage roughly doubling since the 1980s and insured losses reaching USD 12–20+ billion in peak years, wildfire litigation reflects structural, not episodic, legal risk.

Key Implications

• The volume of litigation will likely keep growing with the frequency of fires
• Infrastructure liability risks to utilities are compounding
• Insurers are facing rising claims and bad-faith litigation exposure
• Homeowners must act within strict filing timelines
• Climate risk attribution strengthens legal claims

Wildfire lawsuits have become a systemic legal and economic risk in the U.S.

Conclusion: Wildfire Litigation as Structural Risk

The evolution of wildfire litigation has shifted reactive disaster claims into a regular aspect of the American insurance and legal system. Wildfire lawsuits are becoming standard in the financial and regulatory environment as the number of acres burned grows, climate risk heightens, and liability doctrines expand.

Homeowners, insurance companies, utility companies, and policymakers need to be aware of these trends to reduce exposure. Wildfire risk is no longer a short-lived legal impact; it has become structural.

FAQs

Why is wildfire litigation increasing in the U.S.?

Due to increases in fire frequency, insured losses, exposure to utility liability, and evidence of climate attribution, claims have become more frequent and consolidated lawsuits have grown in number.

How do affected wildfire homeowners get assistance?

They may use centralized legal resources or seek expert advice from wildfire attorneys to understand eligibility, deadlines, and documentation requirements. Platforms such as Fire Help Center provide structured guidance for wildfire claims.

What states have the highest wildfire lawsuits?

California ranks first because of both the frequency of fires and the strict inverse condemnation doctrine. Other western states, including Oregon and Colorado, also experience significant wildfire litigation.

What role do utilities play in wildfire lawsuits?

Utilities are often primary defendants in fire cases caused by electrical equipment, particularly in states where strict liability standards apply.

How is climate science used in wildfire litigation?

Experts use fire attribution research, temperature trend data, and drought metrics to establish foreseeability and strengthen negligence claims.