More than 4.5 million homes in the U.S. are at high or extreme risk of wildfire.
Considering there are about 114,800,000 households in the U.S., nearly 4 percent are at high or extreme risk of wildfire.
Verisk Insurance Solutions – Underwriting, a unit of Verisk Analytics, performed an analysis that shows California has the most homes—about 2 million—at high or extreme risk of wildfire.
The analysis also ranks states by percentage of properties at risk. On this list, Idaho ranks first, with 24 percent of home at high or extreme risk.
"Despite the fact that the number of acres burned in 2013 is lower than the past several years, our study shows insurer risk from wildfire is still significant," says Neil Spector, president of Verisk Underwriting, in a statement. "In June, the risk played out in reality, with insurers incurring at least $385 million of losses due to the Colorado Black Forest fire, according to Verisk's Property Claim Services unit. As losses continue to mount, managing wildfire risk needs to remain a top priority for property insurers."
According to the Insurance Information Institute, about 37,000 wildfires burned nearly 4 million acres in the first eight months of 2013. In 2012 wildfires caused $595 million in insured losses and $1.1 billion in total economic losses, according to Munich Re.
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