Total damage from wildfires in Los Angeles is estimated at $50 billion.

(CLO) The worst wildfire in Los Angeles history is causing unprecedented economic and insurance losses, with total estimated damages reaching tens of billions of dollars.

According to AccuWeather, total economic losses could reach $52-$57 billion, surpassing the $30 billion cost of the 2018 Camp Fire, once considered California's costliest wildfire disaster.

The scale of the wildfire in Los Angeles. Photo: Maxar

Analysts at Morningstar DBRS and Moody's Ratings both forecast billions of dollars in insurance losses due to the high value of homes and businesses in affected areas such as Pacific Palisades, Santa Monica and Malibu. JPMorgan alone raised its estimate of insurance losses to $20 billion, double its previous forecast.

The fires have burned thousands of acres, destroyed about 2,000 structures and forced 130,000 people to evacuate. The devastating effects also underscore the difficulty many homeowners face as property insurance becomes increasingly difficult to obtain.

A large portion of the loss may be uninsured, or subject to the California FAIR program for homeowners who do not qualify for standard insurance.

The California insurance industry has been under heavy pressure from a series of natural disasters. Many companies have stopped offering or renewing coverage in high-risk areas such as coastal areas and areas prone to wildfires.

Moody's Ratings senior analyst Denise Rappmund warned that rising recovery costs could further escalate premiums and make property insurance increasingly unaffordable.

Although the full extent of the damage is still being assessed, experts say it could be one of the costliest natural disasters in US history, second only to Hurricane Katrina in 2005, which caused an estimated $200 billion in damage.

Ngoc Anh (according to LA Times, Reuters, WP)

Source: https://www.congluan.vn/tong-thiet-hai-do-chay-rung-o-los-angeles-uoc-tinh-khoang-50-ty-usd-post329820.html