San Diego County Supervisor Jim Desmond talks about how California's policies are impacting residents as wildfires go unchecked.
A new analysis from JPMorgan estimates that the overall economic and insurance losses caused by the deadly wildfires that have hit Southern California are likely to be the highest in the state's history.
JPMorgan insurance analysts released a report Thursday examining homeowners and commercial property insurance risks in the wake of the wildfires that devastated Los Angeles-area communities, including Pacific Palisades and Altadena. published a book. The fire killed at least five people and damaged or destroyed more than 2,000 homes, businesses and other structures.
The report said nearly 30,000 acres were affected by the fires, and nearly 15,000 homes and buildings were considered at risk as of Thursday, and 13,000 as of Wednesday morning. He pointed out that it is increasing. Firefighters are struggling to extinguish wildfires caused by Santa Ana's strong winds.
Analysts at J.P. Morgan said, “Estimated economic losses from fires have more than doubled since yesterday to nearly $50 billion, and insured losses from fires could exceed $20 billion. We estimate that the number of cases may increase further if not controlled.” . “This makes this event far more severe than the 2018 Butte County Camp Fire, which was the highest insured wildfire in California history to date (approximately $10 billion in insured losses). It will become something.”
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Khaled Fuad (left) and Mimi Lane (right) inspect their family's property destroyed by the Eaton Fire on January 9, 2025 in Altadena, California. (Justin Sullivan/Getty Images/Getty Images)
“Insured losses from the Butte Camp Fire were nearly two-thirds of the economic losses (approximately $15 billion). The event affected more than 150,000 acres and affected more than 18,000 homes and buildings. ”, the report states.
The 2018 Camp Fire destroyed the town of Paradise and several nearby communities, killing 85 people. The cause was a downed commercial power line due to strong winds.
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Apartment destroyed by fire in Eaton Fire in Altadena. (John Putman/Anadolu via Getty Images/Getty Images)
According to a JPMorgan report, most of the losses and insurance losses in the Camp Fire were due to personal property losses, which accounted for 86% of losses, while commercial real estate losses accounted for 12% and all other losses. losses due to insurance companies and auto insurance were 2%.
The ongoing wildfires in Southern California are impacting larger population centers than the Camp Fire, and JPMorgan analysts expect insured losses to be even higher as a result.
Altadena residents leave their burning homes due to the Eaton Fire. (John Putman/Anadolu via Getty Images/Getty Images)
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“While the current wildfires (so far) have not affected as large an area or as many homes or buildings, they are causing more damage to high-priced homes (median home value of $3 million or more). (more than $3 million) are concentrated in the affluent Pacific Palisades area.
“Furthermore, the fire has so far not been contained and continues to spread, suggesting that estimates of potential economic and insurance losses are likely to increase.”
