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A US flag flies amid the remains of burned buildings as high winds fueling devastating wildfires in the Los Angeles area prompt evacuations in the Pacific Palisades neighborhood in west Los Angeles, California, US, January 8, 2025.
Mike Blake | Reuters
The wildfires ravaging the Los Angeles area could become the costliest wildfire in US history.
Insured losses from the fires could top $20 billion this week, according to estimates released Thursday by JPMorgan. Those losses would far exceed the $12.5 billion in insured losses from Bonfire 2018which was the costliest fire in the nation’s history, according to Aon.
Five wildfires fueled by dry conditions and high winds have burned 29,000 acres of land around Los Angeles since Tuesday, according to Cal Fire. Two major fires Palisades and Ethanare still not fully contained.
“The fires have not been contained so far and continue to spread, meaning estimates of potential economic and insurance losses are likely to increase,” JPMorgan analyst Jimmy Bhullar said in a research note.
Nearly 180,000 people remain under evacuation orders, according to the Los Angeles County Sheriff’s Office. According to the sheriff, the number of people killed in the fires is unknown.
The Palisade Fire is the largest of the five fires. It burned more than 17,000 hectares, destroying more than 1000 structuresCalifornia authorities said. Pacific Palisades is an affluent neighborhood with a median home price of more than $3 million, according to JPMorgan.
Economic losses from the wildfires have more than doubled since Wednesday to nearly $50 billion, according to investment bank estimates. AccuWeather estimates economic losses could rise to $57 billion.
