A United States flag flies among the remains of burned buildings as strong winds fuel devastating wildfires in the Los Angeles area, forcing people to evacuate in the Pacific Palisades neighborhood in West Los Angeles, California, U.S., January 8, 2025.
MikeBlake | Reuters
Wildfires wreaking destruction in the Los Angeles area could become the costliest wildfire in U.S. history.
Insured losses from this week's wildfires could exceed $20 billion, according to estimates released Thursday by JPMorgan. These losses would far exceed the $12.5 billion in insured damage caused by Campfire 2018According to Aon data, it was the costliest fire in the country's history.
Five fires sparked by drought and high winds have burned 29,000 acres of land around Los Angeles since Tuesday, according to Cal Fire. The two largest fires Palisades AND Eatare still completely unsecured.
“The fires have not been contained to date and continue to spread, suggesting that estimates of potential economic and insurance losses are likely to increase,” JPMorgan analyst Jimmy Bhullar said in a research note.
Nearly 180,000 people are still under evacuation orders, according to the Los Angeles County sheriff. According to the sheriff, the death toll from the fires is unknown.
The Palisades fire is the largest of the five fires. More than 17,000 acres burned, devastating over 1000 objectsaccording to California authorities. According to JPMorgan, Pacific Palisades is an affluent area where the average home price is over $3 million.
According to the investment bank, estimated economic losses from the fires have more than doubled since Wednesday to almost $50 billion. According to AccuWeather estimates, economic losses could rise to $57 billion.