The devastating Los Angeles wildfires have captured headlines for the lives lost and the communities left in ruins.

But even if you live nowhere near California, the fallout of this catastrophic disaster could affect you.

The LA wildfires might end up being one of the most expensive natural disasters in the nation’s history. Credit: Bellocqimages/Bauer-Griffin / Getty

Firefighters continue to battle several raging wildfires, with the destruction already reaching staggering proportions.

At least 25 lives have been lost, and more than 12,000 homes, businesses, schools, and other structures have been reduced to ashes.

Two of the largest fires, the Palisades and Eaton fires, have burned almost 40,000 acres, turning entire neighborhoods into unrecognizable wastelands.

Preliminary estimates from AccuWeather suggest that the damage and economic losses from the blazes could fall between $135 billion and $150 billion, making this the costliest wildfire disaster in modern U.S. history.

“These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history,” Jonathan Porter, chief meteorologist at AccuWeather, said. “Hurricane-force winds sent flames ripping through neighborhoods filled with multi-million-dollar homes. The devastation left behind is heartbreaking and the economic toll is staggering.”

To grasp the scale, Porter explained: “To put this into perspective, the total damage and economic loss from this wildfire disaster could reach nearly 4 percent of the annual GDP of the state of California.”

Early estimates claim the wildfire could be the most costly in US history. Credit: David McNew / Getty

The financial toll extends far beyond the immediate destruction of homes and property.

AccuWeather’s estimates account for various factors, such as residential and commercial property damage, infrastructure and vehicle destruction, healthcare expenses for those affected, lost wages, and supply chain disruptions.

However, insurance won’t come close to covering the total losses. JPMorgan Chase revealed that insurance payouts are expected to amount to just $20 billion, leaving a staggering $115 billion in uncovered costs, per Daily Mail.

These uncovered expenses will likely be addressed through federal aid, personal savings, and charitable contributions – but that doesn’t mean everyday Americans won’t feel the strain.

Insurers are not expected to cover all the wildfire costs. Credit: NurPhoto / Getty

For taxpayers and policyholders across the country, the wildfire’s financial fallout will have long-lasting effects as higher insurance premiums, limited coverage options, and increased disaster relief spending will have significant consequences.

Insurance broker Aon PLC has predicted that the wildfires will become the most expensive in U.S. history.

Meanwhile, Moody’s analysts issued a stark warning: “The scale and intensity of the blazes, combined with their geographic footprint, suggest a staggering price tag, both in terms of the human cost and the economic toll,” per ABC7.