California Camp fire insured losses at up to $9bn: AIR

Industry insured losses from the Camp Fire in Northern California will be between $6 billion and $9 billion, according to estimates by catastrophe risk modelling firm AIR Worldwide.

The Camp Fire surpassed previous records to become both the deadliest and the most destructive single wildfire in California history, AIR noted. This vegetation fire ignited on November 8 near Camp Creek Road in Butte County and spread quickly due to low humidity, strong winds, and dry fuels, it added. Full containment was achieved on November 25.

To date, the Camp Fire has burned 153,336 acres and destroyed more than 18,700 structures, including 13,696 single-family homes, 276 multi-family homes, 528 commercial structures, and 4,293 other structures. In addition, 564 structures were damaged, including 462 single-family homes and 102 commercial structures. Field damage inspection is still ongoing.

Taken together with the Woolsey fire in Southern California, AIR estimates that industry insured losses from these two California fires will be between $9 billion and $13 billion.

AIR’s estimates of insured losses are based on the assumption of nearly 100 percent take-up rates and damage from fire, including wildfire, is included in standard homeowners’ policies in California.

AIR’s modelled insured loss estimates for the Camp Fire include insured physical damage to property (residential, mobile home, and commercial), both structures and their contents, and auto, direct business interruption losses, and demand surge—the estimated increase in costs of materials, services, and labour due to increased demand following a catastrophic event.