Estimates Of Damages From LA Fires So Far: $50 To $150 Billion, W. Up To $20 Billion In Insured Losses
The wildfires devouring neighborhoods in the greater Los Angeles area are on track to be the costliest blazes in U.S. history, according to analysts, who estimate total economic losses of as much as $150 billion. That far exceeds the $30 billion toll inflicted by the Camp Fire in Paradise, California, along with others that raged in the summer and fall of 2018. It had been the state’s costliest wildfire before the Los Angeles outbreak, according to the National Centers for Environmental Information. The new estimates also dwarf the $5.7 billion tally of the Hawaii firestorm in August 2023.
The insured losses of the Los Angeles fires could exceed $20 billion, J.P. Morgan analyst Jimmy Bhullar wrote Thursday in a research note. Bhullar estimated total economic losses of $50 billion, while AccuWeather set a range of $135 billion to $150 billion. Both analysts noted the forecasts are driven by the blazes’ ripping through some of the country’s most expensive neighborhoods — including Pacific Palisades and Malibu — where the median home price exceeds $3 million.
“These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history,” AccuWeather Chief Meteorologist Jonathan Porter said. “Hurricane-force winds sent flames ripping through neighborhoods filled with multimillion-dollar homes. The devastation left behind is heartbreaking, and the economic toll is staggering. “To put this into perspective, the total damage and economic loss from this wildfire disaster could reach nearly 4 percent of the annual GDP of the state of California.”
At least five people have been killed since the fires began Tuesday, a toll that officials expect will rise. About 180,000 residents have been evacuated, with 200,000 more under evacuation warnings. More than 10,000 structures have been reduced to ash, with others still at risk.
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https://www.washingtonpost.com/business/2025/01/09/los-angeles-wildfire-economic-losses/