LA fires could wreak $50B in damages — most expensive in California history
The devastating fires ripping across Los Angeles could cause more than $50 billion in damages – making them the most costly in state history, according to a report.
Five wildfires are currently tearing through Santa Monica, Malibu and other areas in Los Angeles County that are home to some of the country’s priciest real estate – with the median home value above $2 million, according to an AccuWeather report.
The total damage of the wildfires – which are spreading through the Pacific Palisades at uncontrollable rates due to high windstorms – will likely cost between $52 billion and $57 billion, according to an AccuWeather estimate.
“This is already one of the worst wildfires in California history,” AccuWeather Chief Meteorologist Jonathan Porter said in a statement. “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.”
Celebrities, including Paris Hilton, Leighton Meester and Adam Brody, Spencer Pratt and Heidi Montag and Anna Faris, have confirmed that their homes were destroyed in the fires.
Small businesses and schools have been burnt to the ground as burning embers whip through neighborhoods and ignite new fires.
The disaster will also negatively impact tourism revenue, and toxic, lingering smoke from the burning of homes, vehicles, chemicals and fuel could lead to rising health costs, AccuWeather added.
Any surviving property will likely have suffered fire and water damage, adding to the costs.
The Camp Fire in 2018 was previously the deadliest and most destructive wildfire in California’s history – causing an estimated $16.5 billion in damages.
The 2020 wildfires – which wreaked havoc across California, Oregon, Colorado, Montana, Washington and Wyoming – cost between $130 billion and $150 billion in damages.
The cost to California in those fires was $19 billion.
If the loss of a home isn’t great enough, some homeowners will have to face rebuilding without insurance.
Major insurance companies have been pulling their plans out of California over the past few years as disastrous fires have grown more common.
In 2023, State Farm said it would no longer accept new applications for homeowners’ insurance due to the risk of catastrophes.
Last year, the company said it would end coverage for 72,000 homes and apartments in the state.
State Farm did not immediately respond to a request for comment.
The estimated costs could change, since some areas have yet to report damages and injuries.
“Powerful wind gusts have been blowing embers from home to home, allowing these wildfires to explode quickly and burn out of control,” AccuWeather Senior Meteorologist Dave Houk said in a statement. “Offshore winds are further drying out vegetation and reducing relative humidity, which is enhancing the fire risk.”
Houk said winds might even worsen in the Santa Ana area starting Thursday afternoon and into Friday morning – further stoking the flames.
Another round of strong winds – and increased risk to fast-spreading fires – is expected to hit California early next week, he said.
