LA Wildfires May Cause $57 Billion in Damages, Becoming Costliest Blaze in U.S. History

Jan 9, 2025, 05:36 PM

Wildfires engulfing large areas around Los Angeles, including the Palisades Fire and Eaton Fire, are expected to cause between $52 billion and $57 billion in damages and economic losses, according to preliminary estimates by AccuWeather. Analysts, including JPMorgan, have raised their loss estimates, with some projecting total economic losses to surpass $60 billion, making it potentially the costliest blaze in U.S. history. The fires have destroyed over 2,000 homes and businesses, impacted some of California's wealthiest neighborhoods such as Pacific Palisades and Malibu, and resulted in at least two deaths. Fierce winds are hampering firefighting efforts as the fires continue to rage out of control. Insurance companies are preparing for potential losses exceeding $20 billion.