Southern California's devastating wildfires are now projected to cause economic losses between $250-275 billion, making them among the costliest natural disasters in U.S. history, according to recent estimates from AccuWeather.
The massive fires raging through Los Angeles and Ventura counties have already claimed 28 lives, forced over 150,000 residents to evacuate, and damaged or destroyed more than 15,000 structures. Multiple blazes have torn through upscale neighborhoods in Altadena, Pacific Palisades, and Malibu, where median home values exceed $2 million.
"These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history," said AccuWeather Chief Meteorologist Jonathan Porter. The projected losses factor in property damage, loss of life, healthcare costs, business disruptions and broader economic impacts.
The Palisades fire, which has swept through prime real estate from Santa Monica to Malibu, may become California's most destructive modern wildfire based on structural damage and financial impact. The total projected losses surpass damage estimates from the entire 2020 wildfire season.
Insurance companies are expected to cover between $35-45 billion in claims from the Palisades and Eaton fires, according to property analytics firm CoreLogic. This represents only a portion of the total economic toll.
If current estimates hold, these fires would surpass Hurricane Katrina as the most expensive U.S. natural disaster. Katrina, which struck in 2005, caused approximately $200 billion in damage.
Hundreds of firefighters continue battling multiple blazes, including a massive fire near Castaic, another threatening Brentwood and Bel-Air, and one pushing into Ventura County farmland. Early damage estimates of $50 billion quickly tripled as the fires spread through more communities.