A U.S. flag flies amid the remains of burned buildings in the Pacific Palisades neighborhood of western Los Angeles, California, USA, on January 8, 2025, as strong winds fuel devastating wildfires in the Los Angeles area, forcing people to evacuate.
Mike Blake | Reuters
The wildfires that are wreaking havoc in the Los Angeles area could become the costliest fire in U.S. history.
Insured losses from this week’s fires could top $20 billion, JPMorgan estimated Thursday. Those losses would far exceed the $12.5 billion in insured losses from the 2018 Camp Fire, which Aon said was the costliest fire in the country’s history.
Five wildfires fueled by drought and strong winds around Los Angeles have burned 29,000 acres of land since Tuesday, according to Cal Fire. The two largest fires, Palisades and Eaton, are still completely uncontrolled.
“The fires have not yet been contained and continue to spread, indicating that estimates of potential economic and insured losses are likely to increase,” JPMorgan analyst Jimmy Bhullar said in a research note.
According to the LA County Sheriff’s Office, nearly 180,000 people remain under evacuation orders. The death toll from the fires is unknown, according to the sheriff’s office.
The Palisades Fire is the largest of the five fires. According to California authorities, it burned more than 17,000 hectares of land and destroyed over 1,000 buildings. According to JPMorgan, Pacific Palisades is an affluent area where the average home price is more than $3 million.
Estimated economic losses from the wildfires have more than doubled to nearly $50 billion since Wednesday, according to the investment bank. AccuWeather estimates economic losses could rise to $57 billion.