Suburban Colorado wildfire will likely cause $1bn in insured losses - KCC

The Marshall fire, which ripped through several communities northwest of Denver, Colorado, will likely cause some $1 billion in insured losses,  Karen Clark & Company said in a preliminary estimate.

The Marshall fire proved notable for its rapid spread through suburban developments on the back of downslope winds in excess of 100 mph. Such downslope winds of hot and dry air are "uncommon" in Colorado, "but not unprecedented," KCC authors wrote.

Wildfires swept communities of Boulder County, Colorado, beginning December 30 and the high winds drove fires through 6219 acres to damage or destroy nearly 1000 homes and businesses before snowfall tempered the rampage.

An early damages statement had shown 991 structures destroyed and 127 damaged, focused on two municipalities within the country, Superior and Louisville. Within the count, some 21 businesses were listed as destroyed or damaged.

The two municipalities, situated between Denver and Boulder have median home value for owner-occupied dwellings neighborhood $580k, census data indicates.

Following the latest events, KCC now counts seven major loss-producing fires in Colorado since 2010, including the $ 500 million East Troublesome fire of October 2020, the $450 million Waldo Canyon Fire in 2012 and the $400 million Black Forest Fire of 2013.

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