An American flag flies amid the remains of burned buildings as powerful winds fueling devastating Los Angeles-area wildfires force people to evacuate, in the Pacific Palisades neighborhood of west Los Angeles, California , United States, January 8, 2025.
Mike Blake | Reuters
The wildfires ravaging the Los Angeles area could become the costliest fire in U.S. history.
Insured losses from this week’s fires could exceed $20 billion, according to estimates released Thursday by JPMorgan. These losses would far exceed the $12.5 billion in insured losses due to Campfire 2018which was the costliest fire in the country’s history, according to Aon data.
Five wildfires fueled by drought and high winds have burned 29,000 acres of land around Los Angeles since Tuesday, according to Cal Fire. The two biggest fires, Palisades And Eatonare still completely uncontrolled.
In this aerial view taken from a helicopter, homes burn following the Palisade Fire near the Pacific Palisades neighborhood in Los Angeles, California, on January 9, 2025.
Josh Edelson | Afp | Getty Images
“The fires have not been contained so far and continue to spread, implying that estimates of potential economic and insured losses are likely to increase,” JPMorgan analyst Jimmy Bhullar said in a research note. .
Nearly 180,000 people remain under evacuation orders, according to the Los Angeles County sheriff. The toll from the fires is unknown, according to the sheriff.
The Palisades Fire is the largest of the five fires. It burned more than 17,000 acres, destroying more than 1,000 structuresaccording to Californian authorities. Pacific Palisades is a wealthy area where the median home price is over $3 million, according to JPMorgan.
Members of his family embrace and cry as they look at the burned remains of his home during the Eaton Fire in the Altadena area of Los Angeles County, California, January 9, 2025.
Josh Edelson | Afp | Getty Images
Estimated economic losses from wildfires have more than doubled since Wednesday to nearly $50 billion, according to the investment bank. Economic losses could amount to $57 billion, according to AccuWeather estimates.
