Fire peril is increasing sharply in both severity and proportion of catastrophe claims. (Photo: Shutterstock)
California wildfires contributed heavily to making 2017 an expensive year for catastrophe claims, burning more than 10 million acres and resulting in a record number of fire claims, accounting for 30% of all fire loss costs. While 2018's numbers have yet to be finalized, the recent Camp and Woolsey fires indicate that the trend is only worsening.
Tracking the trends
Fire peril is increasing sharply in both severity and proportion of catastrophe claims. For example, according to the LexisNexis Home Trends Report, nationwide claim severity increased by nearly 20%, and by more than 70% in California from 2016 to 2017. Additionally, more than 70% of fire claims in the state were due to catastrophe claims. Loss cost in 2017 increased nearly 22 points compared to 2016 levels. Seventy-seven percent of homeowners' compensation for fire losses between 2012 and 2015 was for claims exceeding $100,000.
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