The devastating fires sweeping through Los Angeles could cause $150 billion in damage, three times the initially expected costs of the costliest fire in US history, according to a report.
AccuWeather experts revised their damage estimates from about $50 billion to between $135 billion and $150 billion as fires continued to sweep through some of the wealthiest neighborhoods in Los Angeles County on Friday.
“These fast-moving, wind-driven fires created one of the costliest wildfire disasters in modern U.S. history,” AccuWeather Senior Meteorologist Jonathan Porter said in a statement. “Hurricane winds sent flames into neighborhoods filled with multi-million dollar homes.”
Porter added that the total economic losses from the Los Angeles fires could total nearly 4% of California's annual gross domestic product.
The record damage would make the Los Angeles fires the most expensive in US history.
The 2018 Camp Fire was previously the deadliest and most destructive wildfire in California history — causing about $16.5 billion in damage.
The 2020 wildfires — which wreaked devastation across California, Oregon, Colorado, Montana, Washington and Wyoming — cost between $130 billion and $150 billion.
The cost to California in those fires amounted to $19 billion.
California faces more extreme fire risks early next week, as Santa Ana winds are expected to intensify, according to AccuWeather experts. Los Angeles officials are still investigating the cause of the wildfires.
Celebrities such as Paris Hilton, Anna Faris, Leighton Meester and Adam Brody confirmed that their homes were destroyed in the fires.
Small businesses and schools were burned to the ground as embers swept through cities and ignited new flames.
The destruction of thousands of homes and businesses, damage to infrastructure, the long-term cost of rebuilding and relocating, cleanup and recovery costs, emergency shelter expenses, and health care costs for people injured or exposed to toxic smoke add up to huge costs, according to AccuWeather.
Displacement and lost wages for thousands of people across Southern California whose jobs have been affected by business closures also contribute to the damage, experts added.
Any remaining properties will likely have sustained fire and water damage, adding to costs.
“It is unfortunate that lives were changed forever in just a matter of minutes,” Porter said. “Many families may not be able to afford to rebuild or repair and return. Businesses may not be able to recover and jobs will be permanently lost. Thousands of people are in desperate need of assistance.”
The devastating fires — which broke out Tuesday in the Palisades area — are likely to worsen the state's insurance crisis.
Major insurance companies have pulled their plans from California over the past few years as catastrophic fires have become more common.
In 2023, State Farm said it will no longer accept new applications for disaster risk homeowners insurance.
Last year, the company said it would end coverage for 72,000 homes and apartments in the state.
“Our first priority now is the safety of our customers, agents and employees affected by the fires and assisting our customers in the midst of this tragedy,” State Farm told The Post in a statement.
In an October blog post on its website, State Farm said California's insurance crisis was due to rising labor and material costs, worsening wildfire risks and outdated state insurance regulations.
