San Diego County Supervisor Jim Desmond discusses the impact of California's policy on residents amid uncontrollable wildfires.
A new analysis by JPMorgan estimates that overall economic losses and insured losses Severe fire The impact on Southern California could be the costliest in the state's history.
Insurance analysts at JPMorgan released a report Thursday that looked at homeowner and commercial property insurance lines' exposure in light of wildfires that have devastated communities. Los Angeles Areas including Pacific Palisades and Altadena. The fire killed at least five people and damaged or destroyed more than 2,000 homes, businesses and other structures.
The report noted that about 30,000 acres have been affected by the fire and about 15,000 homes and buildings are at risk as of Thursday — up from 13,000 as of Wednesday morning. Firefighters battled to contain the blaze, which was being driven by strong Santa Ana winds.
“Expected economic losses from the fire have doubled since yesterday to close to $50 billion, and we estimate that insured losses from the event could exceed $20 billion (and even if the fire is not contained),” wrote JPMorgan analysts. “This would make this event significantly more severe than the 2018 Butte County Camp Fire, previously the largest insured fire in California history (with approximately $10 billion in insured losses).”
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Khaled Fouad (L) and Mimi Lane (R) inspect a family member's property destroyed by the Eaton Fire on January 9, 2025 in Altadena, California. (Justin Sullivan/Getty Images/Getty Images)
“Insured losses in the Boot Camp fire were close to two-thirds of the economic loss (about $15 billion). That event affected more than 150,000 acres and more than 18,000 homes/buildings,” the report said.
The 2018 Camp Fire destroyed the town of Paradise and several surrounding communities and killed 85 people. This was caused by a downed utility transmission line during a high wind event.
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The apartment fire was caused by Eaton Fire in Altadena. (Jon Putman/Anadolu via Getty Images/Getty Images)
JPMorgan's report noted that the majority of losses and insured losses in campfires came from personal property damage, which accounted for 86% of losses compared to 12% for commercial property and 2% from all other lines and auto insurance.
ongoing fire Southern California Larger population centers than campfires are affecting, and JPMorgan analysts expect insured losses to be higher as a result.
An Altadena resident walks away from his burning home in the wake of the Eaton Fire. (Jon Putman/Anadolu via Getty Images/Getty Images)
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“While the current fire hasn't affected as many acres or as many homes/buildings (so far), most of the damage is in the affluent Pacific Palisades area, which has high-priced residential homes (median home values > $3 million vs.
“Furthermore, the fire has so far not been contained and continues to spread, which means that estimates of potential economic and insured losses may increase.”