As the wildfires sweeping Southern California leave a trail of destruction, AccuWeather has raised its preliminary estimate of total damage and economic losses from $135 billion to $150 billion. The fire, caused by hurricane-force winds, destroyed homes, disrupted businesses and forced the evacuation of more than 100,000 people.
“These fast-moving wind infernos created one of the costliest wildfire disasters in modern U.S. history,” AccuWeather Chief Meteorologist Jonathan Porter said in a statement. “The devastation left behind is heartbreaking and the economic damage is staggering,” Porter said, adding that the total damage could reach 4 percent of California's annual GDP.
Updated estimates reflect extensive property damage, infrastructure loss, and business disruption. Thousands of homes and businesses were damaged or destroyed, including millions of dollars of real estate. Economic costs include evacuation costs, reconstruction costs, lost wages, and medical costs related to smoke exposure and injuries during the fire.
Worsening insurance crisis
The fires highlighted growing problems in California's insurance market. After several major insurance companies withdrew fire insurance coverage in certain areas, many homes in high-risk areas were left uninsured or underinsured.
“This bushfire disaster will be another serious blow to the insurance industry,” Porter said. “Homeowners and businesses need affordable coverage, but insurance companies cannot continue to absorb these types of losses. This is a serious problem that requires urgent attention.”
Strong winds complicate firefighting efforts
Strong winds are hampering efforts to extinguish the blaze, with hurricane-force wind gusts grounding firefighting aircraft during the peak of the storm earlier this week. The gusty conditions are expected to continue into Thursday night, with meteorologists predicting wind speeds of 40 to 50 mph in some areas. Strong winds are expected to begin again Sunday, with gusts potentially reaching 85 mph early next week.
Mr Porter warned that the bushfire threat remained high and more fires were possible in the coming days.
Comparison with past disasters
AccuWeather damage estimates rank the Southern California wildfires as one of the costliest natural disasters in U.S. history. For comparison, the wildfires that hit the western United States in 2020 caused an estimated $130 billion to $150 billion in damage, and the Maui wildfires in 2023 caused losses of $13 billion to $16 billion. Recent U.S. hurricanes such as Milton and Helen caused more than $250 billion in damage.
AccuWeather's total loss estimates include a wide range of factors beyond insured losses, including property damage, lost wages, supply chain disruptions, infrastructure repairs, and emergency management costs.
Long-term recovery challenges
AccuWeather warned that current estimates could rise further, as fires are still burning and new fires are possible. For many displaced families and businesses, the road to recovery will be long and difficult.
“My life changed forever in a matter of minutes,” Porter said. “Many families may never be able to rebuild, and some businesses may never reopen. Thousands of people are in desperate need of basic necessities like food, water, and shelter. Recovery. The process will be expensive and emotionally draining.”
As emergency services work to extinguish the fires, residents and authorities alike face the daunting task of rebuilding communities in the aftermath of one of the state's most devastating wildfire disasters. With the Olympics only a few years away, ensuring community resilience to future disasters is critical to maintaining public confidence and safety.
The ongoing disaster has raised concerns about Southern California's readiness for major global events, including the 2028 Summer Olympics, which Los Angeles is scheduled to host. The region's vulnerability to wildfires, as well as the growing insurance crisis, pose significant challenges to pre-Games infrastructure planning and security. Recovery efforts are sure to further strain already strained state and local government finances, raising questions about how Olympic preparation costs will be handled.
