system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: when a news story says something like "the fire caused $50 million in damage" how are they calculating the dollar amount?
gpt
Depending on the scope of the damage, they could get an estimate from the fire department. They know the extent of the damage, and can guestimate what it would cost to repair/rebuild.

When you talk about larger disasters, like the Fort McMurray fire, they also take into account a number of other factors like disruption to the local and larger economy.