Economic loss from California wildfires could reach $52B-57B: Report

Total damage from the devastating wildfires scorching Southern California could amount to between $52 billion and $57 billion in economic losses, according to a new analysis.

The estimate, issued by AccuWeather's Global Weather Center, accounts for both direct and indirect impacts of the storm and includes both insured and uninsured losses. Some such costs relate to property, wages, crops, infrastructure, supply chains and travel, per the report.

Also included are evacuations, cleanup, emergency management and medical expenses.

“This is already one of the worst wildfires in California history," Jonathan Porter, AccuWeather chief meteorologist, said in a statement. "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."

To put the preliminary estimate into context, AccuWeather found that total damage and economic losses from Maui's 2023 wildfires were $13 billion to $16 billion.

Losses from all U.S. West wildfires in 2020 amounted to $130 billion to $150 billion, while those from the 2024 hurricane season reached nearly half-a-trillion dollars, according to the analysis.

Currently, the most severe blazes are burning in an area stretching from Santa Monica to Malibu — affecting some of the priciest real estate nationwide, with median values of more than $2 million, the meteorologists noted.

"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 analysis stated.

Many Pacific Palisades residents have said that they have no property insurance because companies are no longer willing to provide such protection in this very expensive and high-risk area, per the report.

If the fires continue spreading rapidly and into densely populated zones, thousands more expensive structure could burn down, the meteorologists noted, warning that the loss estimate could be "revised upward substantially."