California wildfire insurance losses top $12 billion for 2018

Insurance losses of $614 million from the “record-breaking” Camp Fire, and Woolsey and Hill Fires, have pushed total claims over $12 billion as of April 2019, according to the California insurance commissioner Ricardo Lara.

The Department of Insurance released the data during Wildfire Preparedness Week (May 6-12) and urged homeowners and businesses to “take a fresh look” at their insurance coverage.
“Wildfire has long been part of California’s landscape and insurers understand that this risk is increasing,” said Nicole Ganley, senior director of public affairs for the American Property Casualty Insurance Association. “The 2018 wildfires resulted in $12 billion in insured losses, making them the costliest fires in state history.

Calling the wildfire seasons of 2017 and 2018 “recording-breaking”, Ganley, emphasised the need for property owners and businesses to maintain insurance coverage. She said insurers were “committed to maintaining a healthy and vibrant market for the benefit of consumers”, adding: “This environment creates more competition which gives consumers more choices.”

Looking ahead to the 2019 wildfire season, Ganley warned that a combination of drought and bark beetle infestation have killed millions of trees, providing more fuel for wildfires. While extensive rain earlier in the year will create even more fuel and wildfire risk during summer and fall months.

She urged California renters and homeowners to make a home inventory and call their agent to update their policy well ahead of the 2019 wildfire season.

Lara also urged homeowners and businesses to take action on insurance. “While last year’s tragic wildfires turned thousands of people’s lives upside down, insurance is helping to rebuild and recover.
“With these record-breaking fires still fresh in our memory, having the right insurance coverage for your home or business should be part of your preparation plan too.”