The wildfires wreaking devastation in the Los Angeles area could become the costliest blaze in U.S. history.
The insured losses from this week’s fires may exceed $20 billion, according to estimates published by JPMorgan on Thursday. Those losses would far exceed the $12.5 billion in insured damages from the 2018 Camp Fire, which was the costliest blaze in the nation’s history, according to data from Aon.
Five wildfires fueled by dry conditions and strong winds have burned through 29,000 acres of land around Los Angeles since Tuesday, according to Cal Fire. The two largest fires, Palisades and Eaton, are still completely uncontained.
“The fires have not been contained thus far and continue to spread, implying that estimates of potential economic and insured losses are likely to increase,” JPMorgan analyst Jimmy Bhullar said in a research note.
Nearly 180,000 people remain under evacuation orders, according to the LA County Sheriff. The death toll from the fires is unknown, according to the sheriff.
The Palisades Fire is the largest of the five blazes. It has burned more than 17,000 acres, destroying more than 1,000 structures, according to California authorities. The Pacific Palisades is an affluent area where the median home price is more than $3 million, according to JPMorgan.
The estimated economic losses from the wildfires has more than doubled since Wednesday to nearly $50 billion, according to the investment bank. The economic losses could rise to $57 billion, according to estimates from AccuWeather.
