The devastating fires that swept across Los Angeles could cause more than $50 billion in damage, making it the costliest in the state's history, according to the report.
Five wildfires are currently ravaging Santa Monica, Malibu, and other parts of Los Angeles County, home to some of the most expensive real estate in the nation, with median home prices exceeding $2 million. According to a report from AccuWeather.
AccuWeather estimates that the total cost of damage from the wildfires, which are spreading uncontrollably across the Pacific Palisades due to high winds, will likely be between $52 billion and $57 billion.
“This is already one of the worst wildfires in California history,” AccuWeather Chief Meteorologist Jonathan Porter said in a statement. “If more structures burn in the coming days, this could become the deadliest wildfire in modern California history, considering the number of structures destroyed and the economic loss.”
Celebrities including Paris Hilton, Leighton Meester, Adam Brody, Spencer Pratt, Heidi Montag and Anna Faris have confirmed that their homes were destroyed in the fire.
Embers raced through neighborhoods, starting new fires and destroying small businesses and schools.
AccuWeather added that the disaster will also have a negative impact on tourism revenues, and that harmful residual smoke from homes, vehicles, chemicals and fuel combustion could lead to increased medical costs.
Properties that remain are likely to have suffered fire or water damage, further increasing costs.
The 2018 Camp Fire was the deadliest and most destructive wildfire in California history to date, causing an estimated $16.5 billion in damages.
Wildfires in 2020 caused extensive damage in California, Oregon, Colorado, Montana, Washington, and Wyoming, with damages ranging from $130 billion to $150 billion.
These fires cost California $19 billion.
If the loss to a home is not significant, some homeowners may have to face rebuilding without insurance.
Major insurance companies have been pulling plans from California in recent years as catastrophic fires become more common.
State Farm announced it will no longer accept new applications for homeowners insurance in 2023, citing catastrophic risk.
Last year, the company announced it would end coverage for 72,000 homes and apartments in the state.
State Farm did not immediately respond to a request for comment.
Estimated costs are subject to change as damage and injuries have not yet been reported in some areas.
“Strong wind gusts blew embers from house to house, causing the wildfire to rapidly explode and spin out of control,” AccuWeather senior meteorologist Dave Hawk said in a statement. “Offshore winds are further drying vegetation and reducing relative humidity, increasing fire risk.”
Hawk said winds could get worse in the Santa Ana area Thursday afternoon into Friday morning, which could further fuel the blaze.
He said strong winds were expected to return early next week, increasing the risk of rapidly spreading fires.
