A US flag flies amid the remains of burned buildings as strong winds fueling devastating Los Angeles-area wildfires force people to evacuate, in the Pacific Palisades neighborhood of west Los Angeles, California, US on January 8, 2025.
Mike Blake | Reuters
The wildfires that have wreaked havoc in the Los Angeles area could become the costliest fire in US history.
Insured losses from this week's fires may exceed $20 billion, according to estimates published by JP Morgan on Thursday. These losses will far exceed the $12.5 billion in insured damages resulting from the disaster 2018 Camp FireIt was the costliest fire in the country's history, according to data from Aon.
Five wildfires fueled by dry conditions and strong winds have scorched 29,000 acres of land around Los Angeles since Tuesday, according to Cal Fire. the two biggest fires, Barriers and Eatonstill not completely contained.
“The fires are not yet contained and are still spreading, 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 mayor. The number of deaths due to the fires is not yet known, according to Al-Sharif.
The Palisades Fire is the largest of the five fires. More than 17 thousand acres were burned and destroyed More than 1000 structuresAccording to California authorities. Pacific Palisades is an affluent area with a median home price of more than $3 million, according to JPMorgan.
Estimated economic losses from the wildfires have doubled since Wednesday to nearly $50 billion, according to the investment bank. Economic losses could rise to $57 billion, according to AccuWeather estimates.
