California’s Thomas Fire insured losses at up to $2.5bn
The Thomas Fire that affected the Southern California counties of Ventura and Santa Barbara in December 2017 has caused insured losses of between $1 billion and $2.5 billion, according to estimates by data analytics firm RMS.
The Thomas Fire is going down in history as the state’s largest wildfire, charring more than 280,000 acres.
The RMS estimate includes loss caused by burn or smoke damage to personal, commercial, and industrial lines of business, along with insured loss from business interruption and additional living expenses. It excludes loss to automobile and agriculture lines of business and all damage related to the recent mudslides that impacted the same area.
Historically, fires that have damaged approximately 1,000 structures such as the Thomas Fire have not exceeded $1 billion in insured loss.
The area affected by the Thomas Fire also experienced significant mudslides after four to six inches (10 to 15 centimeters) of rainfall.
The damage includes 128 homes and six commercial properties destroyed with an additional 307 homes and 17 commercial properties damaged. Many of these affected structures and families were also part of the evacuation efforts from the Thomas Fire in December.
The question now for affected residents and business owners becomes one of insurance, RMS noted. To be covered under a standard homeowner’s policy, the damage from these mudslides must be attributed directly to the Thomas Fire. Without attribution to the Thomas Fire burn scar, the damage would typically be excluded and is left to a separate flood policy, if present.
Join us at Intelligent Automation in Insurance - London 2018. Book by Jan 31st and you could save £400.
More of today's news
QBE warns of billion dollar loss in 2017
Talanx makes acquisition in Turkey
TigerRisk taps Aon Benfield for European operations
AIG-Validus deal hailed as positive move
Beazley boosts European growth with Aon and Chubb hires
PartnerRe strikes £725m reinsurance deal with PIC
Liberty appoints new global financial risks manager for Asia
