A method for protecting a wind turbine from extreme and fatigue loads associated with high wind speed events includes receiving, via a wind turbine condition estimator programmed in a turbine controller of the wind turbine, operating data indicative of current wind turbine operation. Further, the method includes determining, via the wind turbine condition estimator, a plurality of estimated wind turbine conditions at the wind turbine by solving a control algorithm having one or more equations using the operating data. The estimated wind turbine conditions include, at least, an estimated wind speed at the wind turbine and a loading proxy of the wind turbine. As such, the method includes implementing, via the turbine controller, a corrective action only when each of the estimated wind turbine conditions indicates that one or more loading conditions of the wind turbine exceeds a predetermined limit.