Los Angeles Wildfires Cause Estimated $52 Billion Damage

AccuWeather estimates that the wildfires in California have caused preliminary economic losses between $52 billion and $57 billion, marking one of the worst wildfire disasters in the state's history. The ongoing Palisades fire has already destroyed at least 1,000 structures, with potential for further damage as fierce winds continue to impact firefighting efforts. This estimate considers both direct and indirect losses including property, wages, and infrastructure, and highlights that insured losses could reach around $10 billion, according to J.P. Morgan. The California Fair Plan has approximately $6 billion in property exposure within the affected Pacific Palisades area, where many residents lack insurance coverage due to the high-risk nature of the region. If the fire spreads to more densely populated neighborhoods, the economic loss estimates could be revised upward, with total damages possibly surpassing those from the 2023 Maui wildfires, which amounted to $13 billion to $16 billion. The situation remains fluid as new information about damage and impacts continues to emerge.