Based on the number of properties destroyed and the value of homes and businesses affected by the Spokane, Washington, wildfires, Gallagher Re has estimated that insured losses will reach at least hundreds of millions of dollars, with a plausible chance of becoming a billion-dollar industry loss event.
The event is expected to rank among the costliest wildfires for the insurance industry in Washington state’s history, if not the costliest, while the overall economic impact is likely to be significantly higher.
For context, multiple wildfires ignited across the greater Spokane, Washington, metropolitan area at the start of this month, destroying more than 700 homes, businesses, and other structures in the city and surrounding communities, according to new data from Gallagher Re.
“This number could climb as damage assessments continue, and fire officials suggest the tally may approach 1,100 based on the latest available aerial imagery,” the firm added.
Spokane, home to approximately 230,000 residents, is Washington’s second-largest city after Seattle. The surrounding region combines dry grasslands, pine forests, and expanding residential areas, creating significant exposure to wildfire risk within the Wildland-Urban Interface (WUI).
Gallagher Re explained that most of the damage has been linked to the Old Trails Fire, which burned through several neighbourhoods in the northwestern part of the city, near the Spokane River.
The firm continued, “The fire conditions around Spokane were linked to an unusually warm and dry winter of 2025/26 that left much of eastern Washington with below-normal snowpack and reduced soil moisture heading into spring.
“As a result, grass and brush became more highly flammable earlier than normal, larger fuels lost moisture more rapidly through the summer, and vegetation entered the peak fire season under significant moisture stress.”
Echoing Gallagher Re’s assessment, AM Best recently noted in its own report that areas in and around Spokane will suffer “considerable insured losses” from ongoing wind and fire damage, although it is too early to accurately estimate the magnitude of the losses.
