Los Angeles Fires to Top $50 Billion in Damage, AccuWeather Says

Published On Jan 8, 2025, 4:24 PM

AccuWeather estimates that the wildfires around Los Angeles will result in damages between $52 billion and $57 billion, marking one of the worst wildfire disasters in California's history. The damages are exacerbated by strong winds that may spread fires further into high-value real estate areas, primarily impacting homes valued over $2 million. Beyond property losses, there are concerns over health effects from smoke and a potential decline in tourism in the region.

Stock Forecasts

AIG

Negative

The financial implications of the wildfires are likely to affect insurers and related sectors, as companies may face substantial payouts for the damages. Additionally, companies involved in recovery and real estate could see shifts in their business as the market adjusts to the devastation.

XLB

Positive

More broadly, the long-term health and economic impacts of these fires could create opportunities for companies specializing in recovery, reconstruction, and environmental resilience solutions.

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Dennis Iliffe's insurers say the winds that damaged his home were 2mph too slow for them to pay out.