It’s unprecedented.
The wildfires currently devastating the Los Angeles area have the potential to become the most expensive wildfire in U.S. history. According to JPMorgan’s estimates released Thursday, the insured losses from this week’s fires may surpass $20 billion. This would significantly exceed the previous record of $12.5 billion set by the 2018 Camp Fire, which was the costliest wildfire in U.S. history, based on data from Aon.
Since Tuesday, five wildfires, driven by dry conditions and strong winds, have scorched 29,000 acres of land around Los Angeles, as reported by Cal Fire. The two largest blazes, the Palisades Fire and the Eaton Fire, remain completely uncontained. JPMorgan analyst Jimmy Bhullar stated that as the fires continue to spread, estimates of both economic and insured losses are likely to rise.
Approximately 180,000 individuals are currently under evacuation orders, with the exact number of fatalities yet to be determined, according to the LA County Sheriff. The Palisades Fire, the largest of the five, has already consumed more than 17,000 acres and destroyed over 1,000 structures. The Pacific Palisades, a wealthy area with a median home price exceeding $3 million, is among the hardest hit, according to JPMorgan.
Economic losses from the wildfires have more than doubled since Wednesday, now estimated at nearly $50 billion, with some forecasts predicting a potential increase to $57 billion, according to AccuWeather.
