Reuters estimates the economic damage from the fire in Los Angeles exceeded 50 billion dollars
(Reuters) – U.S. private forecaster AccuWeather said on Wednesday that the estimated damage and economic loss from the California wildfires, already one of the worst on record, exceeded $50 billion at a preliminary level.
Raging wildfires in Los Angeles have killed at least two people, destroyed hundreds of buildings and depleted firefighting resources and water supplies since they began on Tuesday, with strong winds hampering firefighting operations and fueling the blazes.
AccuWeather, which estimates losses between $52 billion and $57 billion, added that current loss estimates would have to be revised upward if the fire spreads to densely populated neighborhoods.
“If a significant number of additional structures are burned in the coming days, this could become the worst wildfire in modern California history based on the number of structures burned and economic loss,” AccuWeather Chief Meteorologist Jonathan Porter said.
AccuWeather estimates for the total damage and economic loss from the Maui wildfires in 2023 were between $13 billion and $16 billion.
JP Morgan believes insured losses from the wildfire could total about $10 billion, the brokerage said in a note.
“We expect the majority of losses to be related to homeowners coverage, with a significantly smaller amount to commercial,” they added.
Real estate consultant CoreLogic estimates there are more than 456,000 homes, with nearly $300 billion in redevelopment value, at moderate or higher risk in the Los Angeles and Riverside metropolitan areas.
However, this number represents generally threatened areas and is not related to the current fire.
