The Los Angeles fires that started just in the first week of January of the brand new year 2025 have garnered headlines as the nature and magnitude of this ongoing natural disaster have only grown in their ferociousness and severity.

This fire has affected the richest state in the United States, California. And even more importantly, it has affected one of the biggest and arguably one of the most renowned cities in the whole world, Los Angeles.

When we look at the economic toll of this disaster, which mind you, is an ongoing situation with many fires, especially the Palisades fire, with only around 11 per cent contained, is monumental. The acuteness of this crisis is only unfolding in newer avenues every day.

The Week of Destruction

The fire engulfed multiple parts of the 'City of Angels'. This series of fires started in most parts of the city including Palisades, Eaton and Hurst on January 7.

As per reports, as many as 12,000 structures, buildings of different kinds, residential and commercial alike have been pulverised in this turn of events.

Over the past few days, the fire has managed to not just engulf building, but also monetary edifices. As per some estimates, the losses incurred could amount to around USD 135 to 150 billion or approximately of Rs 11,00,000 crore or 11 lakh crore (as per current exchange rates).

As per recent reports, 11 casualties (deaths) have been reported. The death toll is expected to rise as time passes.

And, once again, these are early reports, and this is an ongoing situation, wherein the fire is yet to be fully contained. Therefore, the numbers are only expected to rise.

In addition, amount in excess of over USD 150 billion is needed to rebuilt Los Angeles.

The Insurance Predicament

This also has ensused another crisis for those who have lost their everything. According to a BBC report, many LA citizens do not have insurance coverage.

According to a reporter working with the San Francisco Chronicle, owing to the possibility of such fires in the region, many insurance companies have tried to reduce their exposure to customers in the part, leaving many without insurance coverage. This is similar to the events that has unfolded in Florida in the past.

With the containment only reaching undesired levels, more numbers and bad news are expected over the days and weeks to come.