U.S. Wildfire Damage Estimates

(Reuters) – U.S. private forecaster AccuWeather announced that the estimated damage and economic loss from the California wildfire, one of the worst in history, exceeds $50 billion at a preliminary level.

Raging wildfires in Los Angeles have resulted in at least two fatalities, the destruction of hundreds of buildings, and significant strains on firefighting resources and water supplies since the fires began on Tuesday. Fierce winds have further complicated firefighting efforts and fueled the flames.

AccuWeather estimates the total loss between $52 billion and $57 billion, noting that if the fire spreads to densely populated neighborhoods, these estimates may rise.

“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,” stated AccuWeather Chief Meteorologist Jonathan Porter.

AccuWeather’s estimates for the total damage and economic loss from the 2023 Maui wildfires were between $13 billion and $16 billion.

J.P. Morgan believes that insured losses from the wildfire could be approximately $10 billion according to a note from the brokerage firm. They noted, “We expect a majority of the losses to be related to homeowners’ coverage and a significantly lesser amount to commercial.”

Property consultant CoreLogic estimates that over 456,000 homes, with nearly $300 billion in reconstruction value, are at moderate or greater risk in the Los Angeles and Riverside metropolitan areas. However, this figure represents general risks in these areas and is not specifically linked to the ongoing fire event.