Economic losses from LA fires have doubled, with destruction spreading across 29,000 acres
The wildfires devastating the Los Angeles area could become the costliest in US history, according to CNBC.
Estimates from JPMorgan, released on Thursday, indicate insured losses could exceed US$20bn.
This would far surpass the US$12.5bn in insured damages from the 2018 Camp Fire, the nation’s most expensive wildfire to date, according to data from Aon.
Since Tuesday, five wildfires fuelled by dry conditions and strong winds have consumed 29,000 acres near Los Angeles, as reported by Cal Fire.
The largest fires, Palisades and Eaton, remain completely uncontained. The Palisades Fire alone has burned more than 17,000 acres, destroying over 1,000 structures, according to California authorities.
Pacific Palisades, where the fire is centred, is an affluent neighbourhood with a median home price exceeding US$3m, as noted by JPMorgan.
The Camp Fire in 2018 and the Tubbs Fire in 2017 are the costliest fires in US history, with insured losses of US$12.5bn and US$11.1bn, respectively.
If current estimates hold, this week’s fires could surpass both, with insured losses potentially reaching US$20bn.
JPMorgan reported that economic losses from this week's fires have more than doubled since Wednesday, reaching nearly US$50bn.
Estimates from AccuWeather suggest the total could rise further to US$57bn.
According to Jimmy Bhullar, JPMorgan analyst, “The fires have not been contained thus far and continue to spread, implying that estimates of potential economic and insured losses are likely to increase.”
Nearly 180,000 people remain under evacuation orders, while the LA County sheriff reports the death toll is currently unknown.
The fires continue to wreak havoc, further escalating losses and impacting residents across the region.
