Reinsurance News

1,734 structures destroyed as Carr and Mendocino wildfires burn through California

6th August 2018 - Author: Matt Sheehan -

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1,734 structures have now been destroyed by the Carr and Mendocino Complex wildfires in California, which have collectively burned through 427,031 acres of the state and continue to spread despite containment efforts.

wildfireAn additional 304 structures have also been damaged and 10,529 remain threatened by what are considered to be two of the most destructive wildfires in California’s history.

Containment of the Carr wildfire has now grown to 43% since last week, although tens of thousands of people remain evacuated and a seventh fatality has been confirmed as a utility worker was killed in a vehicle-related accident.

Meanwhile, the Mendocino Complex fires exploded in size over the weekend as the River and Ranch fires collided due to low humidity and high winds, and it continues to expand rapidly with just 33% of the blaze contained.

15 other wildfires are also currently burning in California in what has been identified as the worst start to the state’s wildfire season in ten years, due to exceptionally hot, dry conditions and an abundance of dead vegetation caused by a historic drought over the last few years.

Last week, re/insurance broker Aon estimated that insurance and reinsurance industry losses of $1 billion could be incurred from the Carr wildfire alone, while Moody’s put the figure at $1.5 billion.

Although the Mendocino Complex fire has only claimed 130 structures and caused no fatalities so far, it has consumed 266,982 acres of land and currently threatens 9,300 structures, making it the state’s fourth largest wildfire ever.

It also has a heavy fuel load in its path in the Mendocino National Forest, and state Senator Mike Macguire has suggested that “there is a high likelihood that the Ranch fire will eclipse the Thomas fire and become the largest fire in California history,” according to The Press Democrat.

Following heavy natural catastrophe losses last year, which included the devastating Tubbs wildfire in Sonoma county, California, insurers and reinsurers will continue to watch the development of the current wildfires very carefully.

Of the 1,604 structures destroyed so far by the Carr wildfire, 1,080 were residential, 24 were commercial, and 500 were classified as ‘Other’, according to data from the California Department of Forestry and Fire Protection (Cal Fire).

The cause of the Carr fire has been determined to be a flat tire that caused sparks to shoot out from the rim of a vehicle’s wheel and ignite a nearby area of dry bush.