The recent mountain fire which broke out on November 6 in Ventura County of Southern California is expected to drive notable insured losses, according to global insurance and reinsurance broking group Aon.
The start of the wildfire in southern California on November 6, 2024, was preceded by extreme wind gusts exceeding 75 mph (120 kph) and very dry air.
In fact, these conditions originated from a Santa Ana wind event, which is a situation that brings both hot and dry air from nearby mountainous terrain, which ultimately results in ideal conditions for wildfire development.
According to the California Department of Forestry and Fire Protection (Cal Fire), the wildfire has burned around 20,630 acres (8,350 ha) in Ventura County, while the number of buildings destroyed by the wildfire is 243, with a further 127 structures also damaged too. Other damage costs from the wildfire include mainly road closures and power outages.
Moreover, the wildfire is 91% contained, however, while authorities are not expecting the wildfire to spread significantly, the risk remains as nearly 40,000 residents living in additional 3,800 structures are still at risk.
Due to the number of buildings affected and associated damage such as road and business closures, total economic losses are expected to exceed $100 million, Aon noted.
The broker also explained that while insurers with the largest market share in California have not provided any preliminary estimate data yet, insured losses from this event are expected to be notable.
It’s also important to highlight that the insurance market in the state is affected by a long-term crisis, with increased frequency and severity of events, concentration of high-worth properties in high-risk areas and other factors.
Local media in California have also reported further losses related to crop damage. According to the Ventura County Agricultural Commissioner, more than 500 acres (200 hectares) of plantations were destroyed, which is equivalent to roughly $4 million in revenue.
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