LA Fires Could Be Costliest Blaze in US History With Over $200bn in Losses

The ongoing, wind-fed fires have killed at least 24 people and swept through 40,000 acres in the greater Los Angeles area – an area larger than San Francisco – destroying entire communities and more than 12,300 structures.

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While two of the largest fires that have been sweeping through more than 40,000 acres in the greater Los Angeles area for a week are still largely uncontained, preliminary estimates of damage and economic losses signal the ongoing LA fires could be the costliest wildfire disaster in US history.

Three fires were still active on Monday evening, though the smallest of all, the Hurst fire, was 95% contained. The Palisades fire, the largest of five major blazes affecting the area in the last week, has burned nearly 24,000 acres and was only 14% contained on Monday evening. Meanwhile, the Eaton fire, which has burned over 14,000 acres through Pasadena and the areas near the Angeles National Forest, was only 33% contained.

An abundance of dry vegetation owing to a prolonged drought in the region, combined with hurricane-level Santa Ana winds, have created the “perfect storm” for the fires to spread rapidly.

The winds, a typical occurrence in southern California this time of year, are forecast to return on Tuesday following a few days of quieter condition, increasing fears of “explosive fire growth.”

Costliest Disaster in US History

While government agencies have yet to provide damage estimates, private commercial weather forecasting agency AccuWeather on Monday increased its preliminary estimate of total damage and economic loss of $250 billion to $275 billion “due to what has occurred and what is to come.”

“AccuWeather expert meteorologists are warning families, businesses, emergency officials and fire crews throughout Southern California to prepare for another round of extreme fire risk as stronger Santa Ana winds return to the region on Monday,” the firm said in a statement. “Due to the AccuWeather forecast, in addition to what has already occurred and expected long-term impacts on people’s health and the economy of the region, AccuWeather experts are increasing their preliminary estimate of total damage and economic loss of $250 billion to $275 billion.”

AccuWeather Chief Meteorologist Jonathan Porter said the estimates are based on the fact that fires occurred in densely populated areas around Los Angeles, which are home to “some of the highest-valued real estate in the country.”

State Farm, California’s biggest insurer, refused nearly 70% of policy renewals in a ZIP code central to Pacific Palisades last year and dropped nearly 4,000 policies across the Palisades and other LA zip codes.

According to data from the California Department of Insurance reported by Euronews, insurance companies declined to renew 2.8 million homeowner policies in California between 2020 and 2022. Over half a million of these were in Los Angeles County.

‘Nothing Left’

The fires have killed at least 24 people and destroyed more than 12,300 structures, leaving residents in a state of shock as they are confronted with apocalyptic scenes upon returning to their neighbourhoods, only to find that the fires have consumed everything.

“I came here with the intention of bringing something home. But there’s literally nothing,” Palisades resident Ricky Gordon told the Guardian.

Mike Geller, 48, told ABC News he was “in shock” as he walked among the rubble of Palisades Village, where almost every home has been destroyed by the fires. “I’m not even sure how I’m talking to you. I’m absolutely in shock. I’m just going through the motions. It hasn’t really set in yet.”

More on the topic: 3 Facts About California’s Climate That Explain the LA Fires

Featured image: Photo: CAL FIRE_Official/Flickr.