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Commercial insured losses from Calif. fires a fraction of $9 billion total

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Commercial insured losses from Calif. fires a fraction of $9 billion total

Commercial insured losses reported thus far from the recent Camp and Woolsey wildfires in California total $571.3 million, just a small part of the $9.05 billion in total insured losses from the fires, the bulk of which are residential, according to data and information from California Insurance Commissioner Dave Jones.

The devastation includes 1,648 partial commercial property losses and 350 total commercial property losses; 7,955 partial residential losses and 10,564 total residential losses; and 9,457 auto and nonresidential losses, such as ocean marine, inland marine, aircraft, boiler, and machinery, according to data from the department.

The Camp Fire in Northern California, which Mr. Jones called the most destructive ever for the state, caused the bulk of the damage, with $490.1 million in commercial losses from 1,029 claims, 286 of which resulted in total loss; and $6.41 billion in residential direct incurred losses from 17,616 claims, 9,349 of which resulted in total loss.

For the Woolsey and Hill fires in Southern California, commercial losses were $81.2 million from 969 commercial claims, 64 of which resulted in total loss; and residential losses came to just under $2 billion from 10, 903 claims, 1,215 of which were a total loss.

The loss information comes from data collected from insurance companies and thus represents actual losses as opposed to estimates, Mr. Jones emphasized as he spoke Wednesday at a briefing in Sacramento, California, and via webcast.

He added that the figures are likely to rise, as did the figures from initial estimates of the 2017 wildfires as well as the Carr and Mendocino fires earlier this year in California, which caused some $845 million in damages, he said.

“I want to remind folks that these are the earliest numbers we have available,” Mr. Jones said, adding that the department is not in the business of “guesstimating” and would not provide guidance on any further increases.

According to the California Department of Forestry and Fire Protection, total burned acreage was 153,336 acres for the Camp Fire, which burned nearly all of Paradise, California, and 96,949 acres for the Woolsey Fire, which affected Malibu, California.

Mr. Jones said that while this year’s fires are more destructive, the 2017 fires caused higher losses, which he pegged just above $12 billion, due to differences in property values.

“The reason for the difference has to do with some difference in the average property value and average home value in Butte County versus those in Sonoma County,” Mr. Jones said. “On average, home and property values are lower in Butte County than in Sonoma County.”

On Nov. 15, Mr. Jones declared an emergency situation, which allows insurance companies to use out-of-state adjusters to help handle the large volume of claims resulting from the Camp and Woolsey fires.

Also that day, the department issued a notice to insurers requesting they agree to expediting claims handling for Camp and Woolsey wildfire survivors in order to help them begin the recovery and rebuilding process more quickly.

The figures and data, Mr. Jones said, “represent enormous losses for these communities. Behind these numbers are real people.”

 

 

 

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