Preliminary Total Damage and Economic Loss Estimated at $4 Billion to $6 Billion and Could Increase as Fires Continue
Multiple wildfires burning near Spokane, Washington, have caused catastrophic damage, dangerous air quality, business disruptions and other economic impacts, with total damage and economic loss preliminarily estimated by AccuWeather experts at $4 billion to $6 billion, an estimate that includes significant long-term health impacts caused by wildfire smoke.
“When smoke lingers for days or returns repeatedly throughout the season, the effects can extend well beyond reduced visibility and poor air quality,” said AccuWeather Chief Meteorologist Jonathan Porter. “Thick smoke across the region is causing Very Unhealthy and Dangerous air quality conditions according to the AccuWeather Air Quality Scale. The greatest risk to health is across the interior northwestern United State, where smoke is the thickest at ground level.
Hazy conditions will be experienced across much of the western half of the United States, extending as far east as Illinois and as far south as Arizona and New Mexico at times this week. This includes cities such as Denver, CO, Omaha, NE and Minneapolis, MN.
AccuWeather expert meteorologists are urging people to reduce their exposure to wildfire smoke and use properly fitted N95 respirators when possible. As vehicles, homes, plastics, chemicals and fuels continue to burn, the smoke can contain a hazardous mixture of fine particles and other dangerous pollutants, which can be carcinogenic.
“When smoke settles across the Inland Northwest for days at a time, it can worsen breathing problems while disrupting outdoor work, school activities and everyday routines. The effects of a major wildfire can continue long after the flames are contained, because communities may face recurring periods of unhealthy air,” Porter added.
Northwest U.S. Wildfires Have Left 60,000 People Under Evacuation Orders
The wildfires near Spokane, Washington have left an estimated 60,000 people under evacuation orders, and destroyed over 700 homes, businesses and other structures.
Days before the fires began, Washington was placed under a state-wide burn ban, and AccuWeather expert meteorologists highlighted an area of Extreme Risk around the region on July 28 due to historic drought, extreme heat and strong winds, ahead of all other known sources.
“Persistent drought has led to conditions that are dangerously ripe for wildfires in much of the Northwest,” said AccuWeather Chief Meteorologist Jon Porter. “Very dry vegetation, recent gusty winds and low humidity allowed these fires to spread rapidly into populated areas, threatening lives and destroying hundreds of homes, businesses and other structures. Thick smoke will also create extremely poor air quality and reduced visibility across the region.”
Wildfire Conditions Will See Little Improvement
“In many places, reduced winds in the coming days can help crews make progress toward wildfire containment,” said AccuWeather Vice President of Forecasting Operations, Dan DePodwin.“Though the overall wildfire risk remains high.”
Into the fall, temperatures will remain above the historic average and extreme drought are forecast throughout parts of the Northwest and is expected to contribute to elevated wildfire risk.
The Financial Toll of Catastrophic Fires
AccuWeather’s preliminary estimate of $4 billion to $6 billion in total damage extends far beyond the structures destroyed. Dangerous wildfire smoke is exposing millions across the Northwest to unhealthy air, while evacuations, including some medical facilities and widespread business interruptions are creating potentially long-lasting economic consequences.
Fires have destroyed at least 700 homes, businesses and other structures; there has been damage to electrical transmission lines and other utilities and infrastructure; the financial impact of evacuation orders affecting approximately 60,000 people; and the evacuation of patients from a Spokane-area medical facility.
The estimate also considers emergency response and firefighting expenses, temporary shelter and housing costs, debris removal and environmental cleanup, business interruptions, lost wages, supply-chain disruptions, and the immediate and long-term costs of rebuilding or relocating residents whose homes were destroyed or rendered uninhabitable. Additional factors include property and vehicle losses, contents of homes and business, anticipated insurance claims, disruptions to transportation and public services, and immediate and long-term health care costs associated with injuries, displacement, physical and mental health impacts and exposure to unhealthy wildfire smoke. Those long-term effects on people are calculated in this preliminary total damage and economic loss estimate.
This is a preliminary estimate because fires remain burning with very little containment (as of August 4, 2026) and some affected areas have not yet completed or reported damage assessments, injury totals and other impacts. Access to certain locations may remain limited because of active fire conditions, evacuation orders, road closures, damaged infrastructure, and ongoing emergency operations. Additional losses may be identified as crews reach affected communities and inspections continue. Continued wildfires, shifting winds, dry vegetation and unhealthy wildfire smoke may also result in further risks to lives, property, infrastructure, public health and economic activity in the coming days and weeks.
About Total Damage and Economic Impact Estimates
AccuWeather incorporates independent methods to evaluate all direct and indirect impacts of the storm, includes both insured and uninsured losses and is based on a variety of sources, statistics and unique techniques AccuWeather uses to estimate the damage. It includes damage to property, job and wage losses, crops, infrastructure, interruption of the supply chain, auxiliary business losses and flight delays. The estimate also accounts for the costs of evacuations, relocations, emergency management and the extraordinary government expenses for cleanup operations and the long-term effects on business logistics, transportation and tourism as well as the long-term and short-term health effects and the medical and other expenses of unreported deaths and injuries.
Water damage is especially costly and is often not covered by standard homeowners insurance. Many people are underinsured for flood damage. An estimated 4% of U.S. homeowners have flood insurance through the National Flood Insurance Program, though participation is often higher in communities near waterways.
AccuWeather is the trusted source for total damage and economic loss estimates for weather disasters in the United States. Our recognized experts incorporate independent methods to evaluate all direct and indirect impacts of extreme weather events. In 2017, AccuWeather first issued a widely quoted preliminary estimate for total damage and economic loss during catastrophic flooding from Hurricane Harvey along the Gulf coast, which helped people in the impacted area, and across the country to better understand the magnitude of the disaster.
