10/1/2025–|Last updated: 10/1/202507:10 PM (Mecca time)
Estimates indicate that the Los Angeles wildfires could become one of the costliest disasters in US history, with losses already estimated to exceed $135 billion.
A report issued by the American weather forecasting services company AccuWeather indicated that the total losses could range between $135 to $150 billion, which reflects the significant impact on a region containing some of the most expensive real estate in the United States.
Destruction with insurance and another without insurance
Analysts such as Morningstar and JP Morgan predicted insured losses of more than $8 billion as a result of property damage. More than 5,300 structures were damaged by the Palisades Fire, while the Eaton Fire destroyed more than 5,000 others.
Despite the authorities’ attempts to contain the fires, the full picture of the losses is not yet clear, as Jonathan Porter, chief meteorologist at AccuWeather, described this disaster as one of the costliest forest fire disasters in modern times.
These fires are a major competitor to events such as the 2018 Camp Fire in California, which recorded insured costs amounting to about $12.5 billion.
With the high value of real estate in the currently affected areas, experts expect these fires to enter the list of the five most expensive disasters ever.
The most destructive
These fires are the worst forest fires in the history of Los Angeles, and US President Joe Biden said that they are “the largest and most destructive forest fires in the history of California,” stressing that “climate change is a reality.”
Biden, who declared a major disaster in California, held meetings with senior officials Thursday afternoon to discuss the federal response.
The Los Angeles County Coroner’s Office said – in an update late Thursday – that the death toll from the massive fires had risen to 10, while authorities in the greater Los Angeles area are currently reluctant to comment on the exact number of deaths resulting from the fires.
Local authorities said – Thursday – that military reinforcements of about 400 members of the National Guard had been announced to combat the violent fires that have been sweeping Los Angeles for 3 days.
The Democratic Governor of California, Gavin Newsom, explained – on Wednesday evening – that “more than 7,500 firefighters,” some of whom came from other states, are fighting these “unprecedented” fires.
It is believed that these fires were caused by an electrical short circuit, as California suffers from a long history of wildfires ignited by power lines in high winds.
Long term repercussions
Experts spoken to by the British Broadcasting Corporation (BBC) indicated that these fires will not be limited to direct economic impacts, but may have long-term impacts on public health and tourism.
It also deepens the existing crisis in the insurance sector, as insurance companies were forced to raise prices or cancel coverage completely due to the high risks of natural disasters such as fires and floods.
Data from California’s FairPlan program showed that the number of policies offered through the program has doubled since 2020, reaching more than 450,000 policies by September 2024.
Denise Rapmond, a senior analyst at Moody’s, explained that this disaster will negatively affect the insurance market in the state. It also predicted an increase in insurance premiums and a decline in the availability of insurance options, along with potential impacts on property values and the state’s public finances.
These data indicate that the Los Angeles fires represent a serious turning point, not only in disaster management but also in how markets and governments deal with the increasing risks resulting from climate change.
