Catastrophe modeling firm Risk Management Solutions Inc. estimates insured losses in the Aug. 24 Napa Valley, California, earthquake will not exceed $250 million.
Newark, Calif.-based RMS said Tuesday that its estimate was based on the combination of observed damage patterns and limited earthquake insurance penetration in the affected area.
In a statement, RMS said key observations from its analysis include that most earthquake damage was extremely localized in Napa County. Primary damage was the result of ground shaking, with little evidence of fire or sprinkler leakage. Also, there was little evidence of liquefaction or lateral spreading of ground because of the quake, RMS said.
RMS also noted that most severely damaged unreinforced masonry structures were concentrated in downtown Napa. In other areas, such as downtown Sonoma and Yountville, damage was limited, though a “few high-value losses took place, including structural damage to a monastery in Oakville,” RMS said in the statement.
The modeling firm noted that most businesses affected by the earthquake reopened within a week. While most area wineries were affected in some way, they now are open for business, RMS said.