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MEDIA ADVISORY: In the Wake of Valley and Butte Fires in California, An Overview Of Wildfire Coverage and I.I.I. Resources

I.I.I. Economist, Actuary Available to Discuss the Economic Impact of Wildfires

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FOR IMMEDIATE RELEASE
New York Press Office: (212) 346-5500; media@iii.org
California Press Office: (707) 490-9365; janetr@iii.org

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NORTHERN CALIFORNIA, October 9, 2015 — Reporters covering the wildfires in Northern California can contact the (I.I.I.) for facts, statistics and analysis by insurance industry experts.

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The Valley and Butte Fires, which raged through Northern California in September, destroying thousands of homes and businesses, are now contained and the recovery process has begun. Janet Ruiz, the I.I.I.’s Northern California-based representative, is in the area and can conduct interviews in person or via Skype.

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The I.I.I.’s president, Bob Hartwig, who is also an economist, and the I.I.I.’s Chief Actuary, James Lynch, are also available to discuss the economic impact of the wildfires and the role of ÌìÃÀ´«Ã½ industry.

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Over the 20-year period 1995 to 2014, fires—including wildfires—accounted for 1.5 percent of insured catastrophe losses in the United States, totaling about $6 billion, according to the Property Claims Services (PCS) unit of ISO.

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California is the epicenter of wildfire activity in the United States. Seven of the 10n costliest wildfires in U.S. history in terms of insured losses have occurred in California. The costliest of these was the 1991 Oakland Hills fire, which produced $2.7 billion in insured losses (in 2014 dollars). The most recent was the 2007 Witch Fire near San Diego, which resulted in insured losses of $1.5 billion (also in 2014 dollars).

TOP 10 MOST WILDFIRE-PRONE STATES, 2013

By households By percent By insured wildfire loss
Rank State Households at high or extreme risk from wildfires (1) Rank State Percent of households at high or extreme risk from wildfires Rank State Largest insured wildfire loss (year)
1 California 1,989,100 1 Idaho 24.1% 1 California $1.7 billion (1991)
2 Texas 1,299,800 2 Colorado 16.9 2 Colorado $450 million (2012)
3 Colorado 373,600 3 California 14.5 3 Texas $530 million (2011)
4 Washington 163,400 4 New Mexico 13.6 4 New Mexico $140 million (2000)
5 Idaho 160,800 5 Texas 13.0 5 Arizona $120 million (2002)
6 Oregon 159,800 6 Utah 12.8 6 Idaho NA
7 Arizona 159,100 7 Oregon 9.5 7 Nevada NA
8 Utah 125,500 8 Washington 5.7 8 Oregon NA
9 New Mexico 122,600 9 Arizona 5.6 9 Utah NA
10 Nevada 59,100 10 Nevada 5.1 10 Washington NA

(1) Number of households is based on data from the 2010 U.S. Census.

NA=Data not available.

Source: Verisk Insurance Solutions – Underwriting and Verisk Climate units of Verisk Analytics®.

Damage caused by fire and smoke are covered under standard homeowners, renters and business owners insurance policies and under the optional comprehensive portion of an auto insurance policy. Water losses or other damage caused by fire fighters while extinguishing a fire is also covered under these policies. The , the state’s property insurer of last resort, covers residential and commercial properties located in brush and wildfire areas.

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Standard homeowners and renters insurance policies also provide coverage for additional living expenses (ALE) when there is an insured disaster. This includes the expense of living away from your home if there is a mandatory evacuation or if your home is damaged and made unlivable. Hotel bills, restaurant meals and other expenses over and above customary living costs, incurred while your home is being rebuilt, are all covered by ALE.

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Voluntary evacuations—those not required by the authorities—do not generally trigger ALE coverage, however.

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The has consumer tips on insurance coverage, mitigation and evacuation in the event of a wildfire. And the free app provides a step-by-step guide to help prepare for disasters and evacuations.

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For detailed information on how to protect your home against wildfires, the Insurance Institute for Business and Home Safety (IBHS) provides a .

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RELATED LINKS

  • Articles: ; ;
  • Facts and Statistics:
  • Issues Update:
  • Videos: ;

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ADDITIONAL RESOURCES

  • (IBHS)

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The I.I.I. has a full library of educational videos on its . Information about I.I.I. mobile apps can be found .

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THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500;

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