California Carr and Mendocino wildfire insurance claims top $845 million
More than 10,000 insurance claims have been filed.
California Insurance Commissioner Dave Jones has announced that insured residential and commercial losses from the Carr and Mendocino Complex fires top $845 million and are now counted among the most destructive wildfires in the state’s history.
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More than 10,000 insurance claims filed
Data collected by the department shows that the widespread destruction from the Carr and Mendocino Complex fires resulted in damaging or destroying more than 8,800 homes, 329 businesses, and more than 800 private autos, commercials vehicles, and other types of property. More than 10,000 claims have been filed, totaling $845 million in insured losses.
Fire officials and experts warn that potentially the worst is yet to come.
“The Carr and Mendocino Complex fires not only caused staggering losses to thousands of Californians, they devastated entire communities and tragically cost many people their lives, and were among the most destructive fires in our state’s history,” stated Commissioner Jones. “We should remember that the vast majority of California’s most destructive fires occurred after September 1st, and fire experts tell us that the worst fires for 2018 may still be ahead of us.”
Climate change a contributor to wildfire losses
The commissioner also released a new report, Trial by Fire: Managing Climate Risks Facing Insurers in the Golden State, which examines the challenges and opportunities associated with climate risk, climate change and insurance.
The report further shows how climate change is a contributor to wildfire losses in California and discusses Commissioner Jones’ efforts to get insurers to consider climate risk and the role insurance can play in addressing the three types of climate risks facing insurance companies: physical, transition and litigation risks.
“Our Trial by Fire report is an important contribution to a better understanding of how climate risk and climate change impact the insurance industry and Californians,” said Jones. “As Insurance Commissioner, one of my responsibilities is making sure insurance companies take into account and address climate-related physical, transition and liability risks, which can have consequences for insurers’ underwriting and the investing of their reserves. I’d like to thank our partners who joined us to author this report, which provides critical information about the climate-related risks for the insurance sector and Californians and what is and should be done to address those risks.”
The report was authored by Evan Mills, Principal of Energy Associates, a California-based energy and environmental consultancy, the climate policy experts at UC Berkeley School of Law’s Center for Law, Energy & the Environment and the California Department of Insurance.
Related: IAIS calls on insurers to intensify climate risk scrutiny