LA Wildfires May Become the Most Expensive in U.S. History

Early estimates suggest the wildfires in Los Angeles could cost between $135 billion and $150 billion, making them unprecedented.

LA Wildfires May Become the Most Expensive in U.S. History
LA Wildfires May Become the Most Expensive in U.S. History

Los Angeles: The wildfires that broke out this week are still burning, but they’re already being called some of the costliest disasters ever in the U.S.

So far, at least 11 lives have been lost, and over 12,000 buildings have been destroyed since Tuesday. Entire neighborhoods, once filled with expensive homes, are now in ruins.

While it’s too soon for a precise financial estimate, early figures suggest these wildfires could be the most expensive in U.S. history. AccuWeather estimates the damage could range from $135 billion to $150 billion.

For context, Hurricane Helene, which hit last fall, caused damages estimated between $225 billion and $250 billion. Jonathan Porter, AccuWeather’s chief meteorologist, stated that this wildfire disaster is likely to surpass all previous records.

AccuWeather’s estimates consider various factors, including damage to homes, businesses, and infrastructure, as well as health care costs and lost wages.

Aon PLC, an insurance broker, also believes these wildfires will be the costliest ever, although they haven’t provided a specific estimate. The Camp Fire in 2018, which cost $12.5 billion, was the previous record holder.

These wildfires have been fueled by strong Santa Ana winds and a severe drought, and they remain largely uncontained. This means the final damage tally could rise significantly.

Porter pointed out that the total losses could reach nearly 4% of California’s annual GDP, which is staggering.

Moody’s also reported that these wildfires are likely to be the most expensive in U.S. history, especially since they’ve affected densely populated areas with high-value properties.

Unlike past wildfires that mostly impacted less populated inland areas, this one has devastated places like Pacific Palisades and Malibu, where many celebrities live. Several have already lost their homes.

Moody’s analysts noted that the scale and intensity of these fires, along with their geographic spread, suggest a huge human and economic cost. However, they didn’t provide a preliminary damage estimate.

It might take months to get a clear picture of the financial impact of these wildfires.

Porter emphasized that we’re just at the beginning of this disaster.

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