California wildfire losses may reach $19bn: CoreLogic
The Camp and Woolsey wildfires in California are expected to cause economic losses between $15 billion and $19 billion, according to data provider CoreLogic.
Total losses from the Camp fire in northern California, the most destructive wildfire in the state’s history, are estimated to be between $11 billion and $13 billion. The Camp fire has burned 153,336 acres and is now fully contained. It has destroyed 13,972 residences, 528 commercial and 4,293 other buildings, according to Cal Fire. The wildfire has also caused 85 civilian fatalities.
Total losses from the Woolsey Fire in southern California are estimated to be an additional $4 billion to $6 billion by CoreLogic. It has burned 96,949 acres and destroyed 1,500 structures and damaged another 341, according to Cal Fire.
Substantial damage was incurred to numerous high-value properties in Ventura and Los Angeles counties. This included dozens of celebrity homes and several filming and historical sites. The Paramount Ranch, the site of many Hollywood productions, Reagan Ranch in Malibu Creek State Park, and the Peter Strauss Ranch were each destroyed.
The CoreLogic analysis of both residential and commercial properties accounts for building, content, and additional living expenses (ALE), and the estimated losses include fire, smoke, demand surge and debris removal. Fire is covered under a standard homeowners’ policy, so the majority of homeowners are likely to have some protection from the financial challenges surrounding recovery, CoreLogic explained.
“The proper estimation of the value of a home is critical because often in situations of wildfire, the home is completely lost,” said Tom Larsen, principal, industry solutions at CoreLogic.
“A deficient valuation can lead to a situation where homeowners have inadequate funding to replace their home,” Larsen added.
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