LA wildfires set to become costliest in US history as death toll rises to 7

The wildfires in Los Angeles are expected to become the costliest in US history, according to a report that cited analysts.

Economic losses from the disaster are projected to hit nearly $50 billion, doubling the estimate from one day earlier, according to JPMorgan analyst Jimmy Bhullar, The Wall Street Journal reported on Thursday.

The amount includes insured losses exceeding $20 billion, a figure that could rise if the fires are not brought under control.

The report said other early assessments of the economic effect also rank it among the most expensive in US history. Ratings firm Morningstar DBRS estimated insured losses to surpass $8 billion.

The final insurance loss figures for natural disasters often vary significantly from initial projections, particularly when forecasts are made while events are still unfolding.

The death toll from wildfires has risen to seven from five, LA officials told reporters late on Thursday.

US President Joe Biden said the wildfires were the worst in California's history, as he pledged extra federal funds and resources to help the state cope.

"This is the most widespread, devastating fire in California's history," Biden said as he convened a special meeting of senior administration officials at the White House.

Analysts calculate potential costs by comparing the number and average value of properties destroyed to those from past fires.

For comparison, the 2018 Camp Fire in Northern California's Butte County, previously the nation's most destructive wildfire, caused insured losses of approximately $12.5 billion when adjusted for inflation, according to data from broker Aon.

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Source: TRT