U.S. private forecaster AccuWeather said on Wednesday that estimated damage and economic loss from the California wildfire, already one of the worst in history, is over $50 billion at a preliminary level.
Raging wildfires in Los Angeles killed least two people, destroyed hundreds of buildings and stretched firefighting resources and water supplies since they began on Tuesday, with fierce winds hindering firefighting operations and fueling the fires.
AccuWeather, which estimates the loss between $52 billion and $57 billion, added that if the fire spread to densely populated neighborhoods the current estimates for loss would have to be revised upward.
“Should a large number of additional structures be burned in the coming days, it may 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’s estimates for total damage and economic loss from the 2023 Maui wildfires were between $13 billion and $16 billion.
J.P. Morgan believes that insured losses originating from the wildfire could be around $10 billion, the brokerage firm said in a note.
Los Angeles surrounded by out-of-control wildfires; at least 5 dead
“We expect a majority of the losses to be related to homeowners’ coverage and a significantly lesser amount to commercial,” they added.
Property consultant CoreLogic estimates that there are over 456,000 homes, with nearly $300 billion in reconstruction value, at moderate or greater risk within the Los Angeles and Riverside metropolitan areas.
However, this number represents the areas at risk in general and not linked to the ongoing fire event.
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