LA fires could hit $50 billion or more in damages. They're shaping up to be the most expensive in state history.
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- The Los Angeles wildfires could cause up to $57 billion in damage, Accuweather estimates.
- The fires are destroying expensive real estate in Santa Monica, Malibu, and other neighborhoods.
- Insurance providers like State Farm pulled new coverage before the fire due to catastrophe risks.
The Los Angeles wildfires could cost between $52 billion and $57 billion in damages and economic losses, according to a preliminary estimate from weather forecasting service Accuweather.
The wildfires tearing through Santa Monica and Malibu, among other areas, are destroying some of the country's most expensive real estate, where median home values exceed $2 million, Accuweather said in a release on Wednesday. Wildfires in the Los Angeles Pacific Palisades neighborhood have destroyed the homes of celebrities including Paris Hilton and have evacuated actors Mark Hamill and James Woods.
The cost estimates include damages to homes and businesses, as well as negative impacts on tourism and health from smoke inhalation, Accuweather said. Property that has not been destroyed by the fire may also have smoke or water damage.
The company said that the estimate is early and may change as some areas have not reported damages and injuries.
"This is likely to end up being one of the most expensive wildfires in modern California history and it will also be one of the most damaging in terms of the numbers of structures that have been destroyed,"Jonathan Porter, AccuWeather's chief meteorologist, said in a statement.
A spokesperson for the company declined further comment.
The last major disaster was the Camp Fire, which destroyed Paradise, Califronia in 2018. German insurance company Munich Re estimated it caused overall losses of $16.5 billion.
"These fires will likely be the costliest in history, not the deadliest, and that is the only silver lining right now," Daniel Swain, a climate scientist with UCLA told LAList.
Five people have been reported dead and 100,000 were told to evacuate.
Health costs could stem from the inhalation of hazardous air from the burning of homes, vehicles, chemicals, and fuels.
Property insurance providers, such as State Farm, pulled new California homeowners' insurance services in 2023, citing risks from catastrophes. Last year, the company said it would end coverage for 72,000 homes and apartments in the state for the same reason.
Five separate fires hit the city and its region in recent days. High winds have hampered emergency services' responses.