San Diego County Supervisor Jim Desmond discusses the impact of California policies on residents amid uncontrolled wildfires.
A new analysis from JPMorgan estimates that overall economic losses and insured losses from the deadly wildfires hitting Southern California will likely be the costliest in state history.
JPMorgan insurance analysts released a report Thursday examining the exposure of real estate and commercial property insurance lines in light of the wildfires that have devastated Los Angeles-area communities including Pacific Palisades and Altadena. At least five people were killed in the fires and more than 2,000 homes, businesses and other structures were damaged or destroyed.
The report says nearly 30,000 acres have been affected by the fire and nearly 15,000 homes and buildings are considered at risk as of Thursday — up from 13,000 as of Wednesday morning. Firefighters have struggled to contain the wildfires, sparked by strong Santa Ana winds.
“Forecasts of economic losses from the fires have more than doubled since yesterday to closer to $50 billion, and we estimate that insured losses from the event could exceed $20 billion (and even more if the fires do not are not under control),” JPMorgan analysts wrote. . “This would make this event significantly more severe than the 2018 Butte County Camp Fires, the wildfires with the highest insured losses in California history (with insured losses of approximately $10 billion ).”
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Khaled Fouad (left) and Mimi Laine (right) inspect a family member’s property that was destroyed by the Eaton Fire on January 9, 2025 in Altadena, California. (Justin Sullivan/Getty Images/Getty Images)
“Insured losses during the Butte Camp Fire accounted for nearly two-thirds of economic losses (approximately $15 billion). This event affected over 150,000 acres and impacted over 18,000 homes/buildings,” the report states. report.
The 2018 Camp Fire devastated the town of Paradise and several neighboring communities and left 85 people dead. This was caused by a power transmission line failing during a high wind event.
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Apartments seen on fire since the Eaton fire in Altadena. (Jon Putman/Anadolu via Getty Images / Getty Images)
The JPMorgan report notes that most damage and insured losses in the Camp Fire came from personal property losses, which accounted for 86% of losses, compared to 12% for commercial property and 2% for all other lines. insurance and car insurance.
The ongoing wildfires in Southern California are impacting larger population centers than the Camp Fire, and JPMorgan analysts expect insured losses to be correspondingly higher.
An Altadena resident walks away from his burning home due to the Eaton Fire. (Jon Putman/Anadolu via Getty Images / Getty Images)
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“While the current wildfires have not affected as much area or as many homes/buildings (so far), most of the damage is concentrated in the affluent Pacific Palisades area, which has residential homes high value (median home price >$3 million vs. $3 million <$500,000 in Butte County),” the analysts wrote.
“Additionally, the fires have not been contained so far and continue to spread, implying that estimates of potential economic and insured losses are likely to increase.”
