As menacing wildfires rage on in the Los Angeles area, the preliminary estimates for the damage caused are predicted to range between $52 to $57 million, according to AccuWeather’s latest report.
The Southern California fires which began their rampage on Tuesday, Jan. 7, have swept across neighborhoods like Pacific Palisades and Altadena, and more recently, Hollywood Hills and Sylmar.
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Over the course of three days, these fires have collectively led to widespread evacuations, destruction of property, and significant challenges for firefighting efforts due to strong winds and dry conditions.
Reportedly, this is the most expensive wildfire in U.S. history and the losses could put a huge strain on California’s state-sponsored home insurance program.
“This is already one of the worst wildfires in California history. 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.
Reuters reported that the devastating flames squeezing LA including a huge fire between Santa Monica and Malibu in the west and near Pasadena in the east—was so expansive that it was “visible from space as a huge pincer.”
The worst of the fires are burning in western LA, affecting some of the nation’s most expensive real estate, where median home values exceed $2 million.
The hurricane-force winds fuelled the wildfires, threatening lives and destroying businesses and high-value real estate near LA, according to AccuWeather, leading to economic losses of an estimated $57 million.
For context, the wildfires in the U.S. West Coast in 2020 caused economic losses estimated between $130 billion and $150 billion, while in 2021, damages were estimated at $70 billion to $90 billion.
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More recently, hurricanes impacting the state of Florida, such as Milton, caused $160 billion to $180 billion in losses, and Helene caused between $225 billion and $250 billion. The 2024 hurricane season as a whole resulted in nearly half a trillion dollars in damages.
With at least five tragic deaths and 130,000 residents evacuated from the region, the disaster marks as one of California’s most significant crises to date, underscoring the urgent need for resilience and preparedness in the face of an increasingly volatile climate.