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A U.S. flag flutters among the remains of burned buildings as powerful winds fueling devastating fires in the Los Angeles area force people to evacuate, in the Pacific Palisades neighborhood west of Los Angeles, California, January 8, 2025.
Mike Blake | Reuters
The fires that are causing devastation in the Los Angeles area could become the most expensive fire in the history of the United States.
Insured losses from this week’s fires may exceed $20 billion, according to estimates published by JPMorgan on Thursday. These losses would far exceed the $12.5 billion in damages insured by the 2018 Camp FireThat was the costliest fire in the nation’s history, according to Aon data.
Five wildfires fueled by dry conditions and high winds have burned through 29,000 acres of land around Los Angeles since Tuesday, according to Cal Fire. The two major fires, Palisades and Eatonthey are still completely unsatisfied.
“The fires have not been contained so far and continue to spread, implying that estimates of potential and insured economic losses are likely to increase,” JPMorgan analyst Jimmy Bhullar said in a research note.
Nearly 180,000 people remain under evacuation orders, according to the LA County Sheriff. The number of deaths from the fires is unknown, according to the sheriff.
The Palisades Fire is the largest of the five fires. It burned more than 17,000 hectares, destroying it more than 1,000 structuresaccording to California authorities. The Pacific Palisades is an affluent area where the average home price is more than $3 million, according to JPMorgan.
Estimated economic losses from the fires have more than doubled since Wednesday to nearly $50 billion, according to the investment bank. Economic losses could rise to $57 billion, according to AccuWeather estimates.
