At least five people died when a wildfire devastated an upscale residential area in Los Angeles

Unlock Editor’s Digest for free

Roula Khalaf, FT Editor, picks her favorite stories in this weekly newsletter.

More than 100,000 residents in southern California were ordered to evacuate and five people were confirmed dead as wildfires raged out of control across the Los Angeles area for a second day.

The fire spread to the Hollywood Hills on Wednesday, forcing the evacuation of densely populated areas on the hillside overlooking iconic attractions including the Hollywood Bowl and the Walk of Fame.

The Hollywood fire puts additional pressure on firefighters, who are struggling to contain multiple blazes. flame across the city and suburbs since its start Tuesday in Pacific Palisades, one of the chicest neighborhoods in the United States.

Insurance companies are preparing to respond to what is expected to be one of the costliest natural disasters in California history.

Strong winds fanned the blaze in at least four different locations across more than 25,000 acres, sending plumes of black smoke and ash across the city. The National Weather Service said wind gusts ranged from 50 to 80 miles per hour across the region, frustrating efforts to contain the fire.

Air quality in much of Los Angeles was considered “extremely unhealthy,” with areas away from the fires having a strong odor of smoke. At Wednesday’s news conference, authorities acknowledged that they were struggling to keep pace with rapidly unfolding events.

Little is known about how the fires started, but the windy conditions that caused them to spread are expected to persist. Low humidity and drought conditions are expected to continue in Los Angeles and Ventura counties through at least Friday.

California Governor Gavin Newsom declared a state of emergency, allowing the National Guard to be deployed. President Joe Biden on Wednesday released federal funds to pay for temporary housing, home repairs and loans to cover uninsured property losses. Los Angeles County said schools will be closed Thursday.

The destruction began Tuesday in Pacific Palisades, home to famous Hollywood stars including comedian Billy Crystal and Paris Hilton, whose homes were among more than 1,000 buildings destroyed.

The fire quickly spread north to Malibu and threatened buildings in Santa Monica to the south, as embers from strong winds engulfed entire streets. That fire has grown to more than 15,800 acres.

Areas north and east of Los Angeles were also engulfed in flames, including the San Fernando Valley, Santa Clarita, Altadena and Pasadena.

Efforts to contain the blaze Wednesday were hampered because so-called super planes carrying water from the ocean were grounded by high winds. However, by evening, helicopters were dropping water on the Hollywood fire.

Pacific Palisades residents, some of whom fled on foot Tuesday, called friends and family to find out whose homes were still standing. Many people who evacuated to nearby Santa Monica were told they needed to move again as the fire broke out.

“This is a tragic moment in our history in Los Angeles,” said Jim McDonnell, chief of the Los Angeles Police Department. “It is important that we remain patient, united and focused on saving lives.”

The fires have halted work in Hollywood and forced the postponement of screenings and pre-Oscars celebrations. Warner Bros. has stopped production in Burbank because of the fire, and Paramount has postponed the premiere of its new movie, Better man. Universal canceled Friday’s party hosted by Donna Langley, president of NBCUniversal Studios & Entertainment.

Early predictions of financial devastation have begun to emerge, with AccuWeather estimating total damages and economic losses could reach $57 billion.

In the Palisades area, the median home price is about $3.5 million, meaning the area could have billions of dollars in claims.