Los Angeles wildfire economic loss estimates top $50B

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AccuWeather has reported that the damage and economic losses from the ongoing California wildfire are preliminarily estimated to exceed $50 billion, potentially making it one of the most devastating wildfires in history. The fires, which began on Tuesday in Los Angeles, have already claimed at least two lives, destroyed hundreds of buildings, and stretched firefighting resources amid fierce winds that continue to fan the flames.

AccuWeather estimates the total loss to range between $52 billion and $57 billion. The forecaster cautioned that these figures might need to be revised upward if the fires spread to densely populated neighborhoods. Chief Meteorologist Jonathan Porter noted that, should more structures be destroyed in the coming days, this wildfire could surpass previous records for destruction and economic impact in modern California history.

For comparison, the total damage and economic loss from the 2023 Maui wildfires were estimated by AccuWeather at $13 billion to $16 billion.

J.P. Morgan has estimated that insured losses from the California wildfire could amount to approximately $10 billion, with most losses stemming from homeowners’ insurance policies, while commercial losses are expected to account for a smaller proportion.

According to property consultant CoreLogic, more than 456,000 homes in the Los Angeles and Riverside metropolitan areas are at moderate or greater risk from the wildfire. The reconstruction value of these homes is estimated at nearly $300 billion, underscoring the potential scale of destruction if the fires continue to spread.