An American flag flies among the remains of burned buildings as strong winds fuel the devastating wildfires in the Los Angeles area prompting people to evacuate, in the Pacific Palisades neighborhood of West Los Angeles, California, USA, January 8, 2025.
Mike Blake | Reuters
The wildfires wreaking havoc in the Los Angeles area could become the costliest wildfire in US history.
Insured losses from this week’s wildfires could top $20 billion, according to estimates released Thursday by JPMorgan. Those losses would far exceed the $12.5 billion in insured claims from Campfire 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. The two biggest fires, The palisades and Eatonthey are still completely unrestrained.
“The fires are so far not contained and continue to spread, implying that estimates of potential economic and insured 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 LA County Sheriff. According to the sheriff, the number of people killed in the fires is unknown.
The Palisades fire is the largest of the five fires. It burned more than 17,000 hectares, destroying more than 1000 buildingsaccording to California authorities. Pacific Palisades is an affluent area where the median home price is more than $3 million, according to JPMorgan.
Estimated economic losses from the wildfires have more than doubled since Wednesday to nearly $50 billion, according to the investment bank. Economic losses could rise to $57 billion, according to AccuWeather’s estimates.
