Insurance estimates on fire as flames rage in California



The analyst site seekingalpha.com indicates wildly climbing estimates of damage as the historic fire in California continue unabated today January 10, driven by fluctuating hurricane force winds.

They state “Economic estimates continue to climb, with the latest numbers from the AccuWeather forecasting service pegging total damages at US $135B-$150B. At those levels, the wildfire disaster could reach nearly 4 per cent of the annual GDP of the state of California.”

The analysts said, “There is no doubt that will further shake up the insurance and reinsurance industry, which has already been raising the cost of coverage for dangerous areas and dropping or refusing to issue new policies.”

The site states that home owners should watch for “Significant double-digit increases in homeowners insurance are on tap in the coming years, which is likely to weigh on property values (or even across state lines). New rules in California also require insurers to underwrite a minimum percentage of policies in high-risk areas based on their market share, but that threatens to raise premiums.”

Ktuv.com on Wednesday it was noted that there had been 55 wildfires over eight days in California.

In the Palisades 30,000 were evacuated. By Friday 180,000 had been forced to evacuate their homes in the wider region.

Forbes.com commented on January 10, "The death toll from the fires raging across Los Angeles County rose to 10 on Thursday night, as the largest of the five blazes—the Palisades Fire—grew to cover nearly 20,000 acres. President Joe Biden said the federal government will pay the full cost of the disaster response for 180 days, and JPMorgan analysts estimated Thursday there could be $50 billion in total damages.

"Thousands of structures were leveled by the wildfires, damaging landmarks and affecting the homes of several celebrities in the Pacific Palisades, where the average home lists for more than $3 million. Paris Hilton, Los Angeles Lakers head coach JJ Redick, Billy Crystal and others reportedly lost their homes."

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