The devastating fires have killed at least 11 people and incinerated more than 12,000 structures since Tuesday, devastating entire neighborhoods that were once home to multimillion-dollar properties.
Although it is still too early to make an accurate financial tally, losses so far likely make these fires the costliest on record in the United States, according to various estimates.
A preliminary estimate from AccuWeather puts the damage and economic losses so far at US$135 billion to US$150 billion. In comparison, AccuWeather estimated the damage and economic losses caused by the hurricane Helenewhich devastated six states in the southeast of the country last fall, between 225 and 250 billion US $.
“This will be the costliest fire in modern California history and also quite possibly the costliest wildfire in modern U.S. history, due to fires occurring in densely populated areas populated areas around Los Angeles, where some of the most valuable real estate in the country is located,” said Jonathan Porter, chief meteorologist for the private company.
AccuWeather considers a multitude of variables in its estimates, including damage to homes, businesses, infrastructure and vehicles, as well as immediate and long-term health care costs, lost wages and interruptions in service. supply chain.
Insurance broker Aon also said Friday that the Los Angeles County fires will likely end up being the costliest in U.S. history, although it did not release an estimate. Aon ranks a wildfire known as the Camp Fire in Paradise, California, in 2018 as the costliest in U.S. history to date, at US$12.5 billion, adjusted for of inflation. The Camp Fire killed 85 people and destroyed approximately 11,000 homes.
Los Angeles County’s fires, fueled by hurricane-force winds in Santa Ana and extreme drought, remained largely uncontrolled Saturday. This means that the final loss toll from the fires is likely to increase, perhaps substantially.
“To put this in perspective, the total damage and economic losses caused by this wildfire disaster could reach nearly 4 percent of California’s annual GDP,” AccuWeather’s Porter said.
-In a report released Friday, the financial firm Moody’s also concluded that the fires would prove to be the costliest in U.S. history, particularly because they ravaged densely populated areas with high-end properties .
While the state is no stranger to major fires, they have typically been concentrated in inland areas that are not densely populated. This led to less destruction per acre and less expensive damage to homes, Moody’s noted.
That’s not the case this time around, with one of the largest fires destroying thousands of properties in Pacific Palisades and Malibu, home to many Hollywood stars and executives with properties worth several million dollars. Many celebrities have already lost their homes in the fires.
“The scale and intensity of the fires, combined with their geographic footprint, suggest a staggering price tag, both in terms of human cost and economic toll,” Moody’s analysts wrote. The report does not include a preliminary estimate of the cost of fire damage.
It may be several months before a concrete count of the financial losses caused by the fires is possible.
“We are in the very early stages of this catastrophe,” said Mr. Porter.
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