The wildfires ravaging Los Angeles could cause total damage and economic loss of between $135 and $150 billion, making them among the most expensive natural disasters in American history.
“These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history,” said Jonathan Porter, Chief Meteorologist at AccuWeather, which is responsible for the estimate.
“The devastation left behind is heartbreaking, and the economic toll is staggering.”
The total damage could amount to almost 4% of California’s annual GDP.
The calculation includes property and infrastructure damage, business disruptions, evacuation costs and healthcare costs linked to smoke inhalation and injuries caused by the fires.
For context, wildfires in the Western US in 2020 caused between $130 and $150 billion, while the damage caused by the Maui wildfires in 2023 caused around $15 billion in losses.
In 2024, Hurricanes Milton and Helene are believed to have caused around $250 billion in damage.
Porter also noted that the wildfires could spell disaster for California’s insurance industry, which has already received a significant battering. Many insurers now refuse to provide coverage to houses in certain regions at risk from fire.
“This wildfire disaster is going to be another severe blow for the insurance industry.
“Homeowners and businesses need affordable coverage, but insurers can’t keep absorbing these kinds of losses. It’s a serious issue that requires urgent attention.”
Accuweather cautioned that, with the wildfires still raging, its estimate of the damages could increase significantly.