California wildfires cause $845 million in insurance losses this year so far
The startling tally comes less than a year after the devastating Wine Country fires in October totaled
This year, more than 10,000 insurance claims have been filed for property losses as a result of the two
Those numbers are likely to climb as claims are adjusted and more people file with their insurers, Jones said.
"The worst may be yet to come," Jones said, noting that wildfire season peaks in the fall. "The problem is growing. The risk is growing. The trajectory is in the wrong direction."
The news came as another major fire broke out in northern
The mounting losses are profound: On Thursday, Jones also updated data for the fires that erupted during a windstorm last October, destroying more than 7,000 buildings in at least eight counties across
Property owners in
Fires trigger other expensive natural disasters, Jones said. Residents, business owners and others have filed more than
The claims outlined Thursday underscore the unprecedented destruction
He urged homeowners to do three things: Review your policy, get a preliminary estimate from your insurer of the replacement cost, then talk to a contractor to get the actual cost of replacing your home. He recommended buying insurance that exceeds the replacement cost by 25 to 50 percent, because "surge pricing" after a fire can inflate the cost to rebuild. The demand for materials and labor causes prices to go up, he said.
"Most people mistakenly believe that it will cost to replace what it cost when they bought it on the market," he said. "Often, the cost of replacement can exceed the market value of the home."
Property losses are just part of the cost of wildfires. Last year,
And there are additional costs associated with damage to utilities, roads and business closures. .
"It cost
Jones also released a new report, "Trial by Fire: Managing Climate Risks Facing Insurers in the Golden State," which describes how climate change is a contributor to wildfire losses in
"We are simply not doing enough, fast enough to get ahead of this problem," said Jones.
Climate change doesn't cause wildfires. But it increases the likelihood and intensity. Advances in computer modeling allow scientists to make quantitative connections between extreme weather events and climate change, and climate change is making large wildfires more common because global warming has increased dry fuel, turning trees and grass into tinder.
But rising damage costs are partly because of demographic shifts and development decisions that make natural disasters more destructive. People ignite the vast majority of fires, compared to those caused by natural processes like lightning strikes. And more and more people are building homes on lands bordering wildland areas in parts of the state suspectible to fires. For example, in
The Associated Press contributed to this report.
___
(c)2018 the San Jose Mercury News (San Jose, Calif.)
Visit the San Jose Mercury News (San Jose, Calif.) at www.mercurynews.com
Distributed by Tribune Content Agency, LLC.
Study Results from Brookings Institution Provide New Insights into Health Insurance (The impact of subsidized private health insurance and health…
A.M. BestTV: Risks Are Changing for Legal Professional Liability Insurers, Say A.M. Best Analysts
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News