The LA wildfires are expected to cost California at least €50 billion in damages, according to analysts.
ADVERTISEMENTFires burning across California will likely cost an estimated $52 billion (around €50bn) to $57 billion (around €55bn) in damage and economic losses, according to preliminary figures from private forecaster AccuWeather Inc.
“This is already one of the worst wildfires in California history,” Jonathan Porter, AccuWeather’s chief meteorologist, said in a press release sent to Euronews Business on Thursday.
“Should a large number of additional structures be burned in the coming days, it may become the worst wildfire in modern California history based on the number of structures burned and economic loss,” he added.
At least five people have been killed in the fires with officials expecting the death toll to rise.
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.
“This is a fast-moving, wind-driven inferno that is threatening lives and causing catastrophic damage. AccuWeather experts estimate the total damage and economic loss from the windstorm and wildfires in Southern California is between $52 and $57 billion,” Porter said. “This is a terrible disaster. We’re just starting to get a clear look at the magnitude of the destruction and loss. Strong offshore winds have been gusting at 70-100 mph. Fire crews are dealing with hurricane-force wind gusts as they valiantly try to battle the flames and contain these fires.”
