The ongoing California wildfires are projected to result in an economic loss of between $52 billion and $57 billion, according to a report from AccuWeather’s Global Weather Center.
The staggering estimate accounts for both direct and indirect impacts, including insured and uninsured losses across property, wages, crops, infrastructure, and more. It also incorporates costs related to evacuations, cleanup, emergency management, and medical expenses, The Hill reported.
“This is already one of the worst wildfires in California history,” explained AccuWeather’s chief meteorologist Jonathan Porter 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.”
The estimated losses are significant, particularly when compared to the $130 billion to $150 billion in total wildfire losses across the western United States in 2020.
Porter said that one of the most severely impacted areas lies between Santa Monica and Malibu, home to some of the nation’s most expensive real estate, with median property values exceeding $2 million. He warned that as the fires spread into more densely populated regions, thousands more structures could be destroyed, which could result in the estimate being “revised upward substantially.”
“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.
The report also noted that many residents in Pacific Palisades have said that they do not have property insurance due to insurance companies determining the area to be high-risk. As the fires rage on, the financial and structural toll continues to climb.
