The LA wildfires are expected to cost California at least $135 billion in damages, according to analysts. Fires burning across California will likely cost an estimated $135 billion to $150 billion in damage and economic losses, according to updated preliminary figures from private forecaster AccuWeather Inc.
“These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern US history,” AccuWeather Chief Meteorologist Jonathan Porter said.
“Hurricane-force winds sent flames ripping through neighbourhoods filled with multi-million-dollar homes. The devastation left behind is heartbreaking and the economic toll is staggering. To put this into perspective, the total damage and economic loss from this wildfire disaster could reach nearly 4% of the annual GDP of the state of California.”
Meanwhile, officials say more than 1,000 structures, mostly homes, were destroyed in the blazes so far and some 130,000 people remain under evacuation orders in the metropolitan area, a number that continues to change as new fires erupt.
AccuWeather said the worst of the fires were burning in an area from Santa Monica to Malibu, impacting some of the most expensive real estate in the country, with median home values over $2 million (around €1.94m).
“There are significant risks for residents, their homes and their businesses, as well as negative impacts on tourism and health, due to smoke inhalation and smoke damage in non-destroyed structures going forward. This estimate is preliminary, as the infernos continue to spread and impacts continue to occur, and some areas have not reported information about damage, injuries and other impacts.
“The extent of the devastation suggests a long and challenging recovery process that will require the collective efforts of the community and support from authorities. Many residents in the Pacific Palisades are reporting they have no property insurance because insurance companies no longer provide coverage for real estate in the highly priced and high-risk area,” AccuWeather said in the press release.
It further noted that should the fires continue to spread rapidly into densely populated neighbourhoods, many thousands of additional very expensive structures will be at risk of burning down, which may result in the AccuWeather estimate for total damage and total economic loss being revised upward substantially.
