Woolsey Fire costs insurers at least $2.5 billion: AIR
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Insured losses from the Woolsey Fire in southern California will be at least $2.5 billion, according to AIR Worldwide.
The Boston-based catastrophe risk modeling firm’s estimate of insured losses is based on the assumption of nearly 100% takeup rates given that damage from fire, including wildfire, is included in standard homeowners policies in California, AIR said Friday in a statement.
The vegetation fire ignited on Nov. 8 in Ventura County and spread quickly due to Santa Ana winds and low humidity as well as challenging suppression factors including steep terrain, limited access and extreme fire behavior, AIR noted. Full containment was achieved on Nov. 22, and the cause of the Woolsey Fire is still under investigation, according to the final update issued by Los Angeles County Fire Department on Nov. 25.
In total, the Woolsey Fire burned through 96,949 acres and 1,643 structures while another 364 structures were damaged, according to the California Department of Forestry and Fire Protection.
“Total economic losses are expected to be higher than the industry insured loss estimate,” AIR said in its statement. “Industry insured losses from the Woolsey Fire could be higher than $2.5 billion due to uncertainty in the payment of additional living expenses resulting from mandatory evacuations, loss of some individual structures outside of the most affected neighborhoods as well as widespread but lower levels of loss due to smoke, loss of electricity and damage from suppression efforts.”
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