• The wildfires in Los Angeles County have already killed at least 11 people and destroyed over 12,000 structures.
• Preliminary estimates suggest the financial damage could reach between $135 billion and $150 billion.
• Experts believe these wildfires may become the costliest in U.S. history due to their impact on densely populated areas.

LOS ANGELES (AP) — The wildfires that erupted this week across Los Angeles County are still raging, but early projections indicate they could be among the costliest natural disasters in U.S. history. These devastating blazes have claimed the lives of at least 11 individuals and have decimated more than 12,000 structures since Tuesday, reducing entire neighborhoods, typically home to multimillion-dollar properties, to ashes.

Although it is still early to accurately assess the full financial toll of the disaster, estimates suggest that the losses could firmly place the wildfires among the most expensive in U.S. history. A preliminary estimate from AP News reports that the damage and economic losses could range between $135 billion and $150 billion. For context, the damage caused by Hurricane Helene last fall was estimated between $225 billion and $250 billion.

Jonathan Porter, chief meteorologist at AccuWeather, stated, “This will be the costliest wildfire in California modern history and also very likely the costliest wildfire in U.S. modern history, because of the fires occurring in the densely populated areas around Los Angeles with some of the highest-valued real estate in the country.” This assertion underscores the unique characteristics of this disaster, wherein the wildfires have hit high-value regions such as Pacific Palisades and Malibu, known for their celebrity residences.

AccuWeather also emphasizes that its damage estimates encompass various factors, including destruction to homes, businesses, infrastructure, and vehicles, along with immediate and long-term healthcare costs, lost wages, and supply chain disruptions.

Additionally, insurance broker Aon PLC affirmed on Friday that these wildfires are poised to be the costliest in U.S. history, although they have yet to provide a specific estimate. They previously ranked the Camp Fire in Paradise, California in 2018, known to have caused $12.5 billion in losses (adjusted for inflation), as the most expensive until now.

These wildfires were fueled by powerful hurricane-force Santa Ana winds and extreme drought conditions, with containment efforts still ongoing as of Saturday. Reports suggest that the final tally of losses may yet climb, reflecting the widespread devastation. Moody's analysis concurs that this wildfire is likely to be the costliest ever in U.S. history, largely due to their sweeping destruction through densely populated, high-value property areas.

Moody's pointed out that while California regularly faces major wildfires, past incidents primarily affected less populated inland areas, resulting in comparatively lower destruction. In contrast, the sheer scale and intensity of the current blazes, coupled with their geographic span, indicate a worrying economic impact. Analysts noted, “The scale and intensity of the blazes, combined with their geographic footprint, suggest a staggering price tag, both in terms of the human cost and the economic toll.”

Finally, experts suggest it could take several months to ascertain a comprehensive figure for financial losses stemming from these wildfires. “We’re in the very early stages of this disaster,” Porter remarked, highlighting the ongoing challenges ahead for those affected.