Los Angeles wildfire is considered the most serious in California history and could cause about $52-57 billion in damage, according to experts.
“This is one of the worst wildfires in California history. If more homes are destroyed in the coming days, it could become the most devastating wildfire in modern California history,” Jonathan Porter, chief meteorologist at AccuWeather, a private US company that provides weather forecasting services, said on January 8.
The fires raging in the Los Angeles area are destroying some of the most expensive real estate in the country, where homes average more than $2 million, according to AccuWeather data. The fires are still spreading due to strong winds, and more homes could be destroyed in the coming days.
Porter estimates the material and economic losses from the Los Angeles wildfires could be as high as $52-57 billion. Smoke from the fires could also have long-term impacts on public health and the region’s thriving tourism industry.
JP Morgan estimates that insured losses could be as high as $10 billion. “The bulk of the damage is concentrated among homeowners,” the firm said.
California state authorities have not commented on the estimates.
According to the California State Fire Department, five major wildfires are raging in the Pacific Palisades, Eaton, Hurst, Lidia and Sunset areas.
The largest fire, the Pacific Palisades, has burned more than 28 square miles, destroyed more than 300 homes, and is threatening 13,300 more, while the second largest, the Eaton Fire, has burned nearly 11,000 acres, destroyed many homes, and killed at least five people.
California Governor Gavin Newsom has declared a state of emergency. Local officials expect winds to gradually decrease, but maintain a red alert for high wildfire risk through the evening of January 10.
