Moody’s: CA Wildfires Will Cost Billions
A new report from Moody’s Investors Service Inc. indicates that the ongoing California wildfires likely will result in billions of dollars in insured losses following damage to commercial and residential properties. Moody's said policyholders will face increased rates and non-renewals as severe wildfires are likely to continue, driven partly by climate change.
As of Aug. 25, nearly 1,800 residential and commercial properties were damaged or destroyed by the wildfires, which have resulted in more than 1.5 million acres burned and at least seven fatalities. Moody's said insured losses are around $1.5 billion so far, based on an average value of $826,000 per structure. Property and casualty insurers paid out $13 billion in losses due to California wildfires in 2018 and $12 billion in 2017.