101°F
weather icon Clear

California fires insurance claims at $9B, expected to rise

SACRAMENTO, Calif. — Insurance claims from last month’s California wildfires already are at $9 billion and expected to increase, the state’s insurance commissioner announced Wednesday.

About $7 billion in claims are from the Camp Fire that destroyed the Northern California city of Paradise and killed at least 86 people, making it the deadliest U.S. wildfire in at least a century. The rest is for the Woolsey and Hill fires in Southern California.

Collectively, the fires destroyed or damaged more than 20,000 structures, with the vast majority in and around Paradise. On Tuesday, state and federal authorities estimated it will cost at least $3 billion to clear debris.

“The devastating wildfires of 2018 were the deadliest and costliest wildfire catastrophes in California’s history,” Insurance Commissioner Dave Jones said, adding that “behind the insured loss numbers are thousands of people who’ve been traumatized by unfathomable loss.”

There are more than 28,000 claims for residential personal property, nearly 2,000 from commercial property and 9,400 in auto and other claims for the fires.

That’s well above the number of claims filed following a series of fires that tore through Northern California’s wine country last year. Losses from those fires were initially pegged at $3.3 billion but eventually grew to $10 billion.

The cleanup costs for last month’s fires also will far surpass the record expense of $1.3 billion the U.S. Army Corp of Engineers spent on debris removal in Northern California in 2017.

California Office of Emergency Services Director Mark Ghilarducci said the state will manage cleanup contracts this time. Last year, hundreds of Northern California homeowners complained that contractors paid by the ton hauled away too much dirt and damaged unbroken driveways, sidewalks and pipes. The state OES spent millions repairing that damage.

Ghilarducci said the state OES will hire auditors and monitors to watch over the debris removal in hopes of cutting down on the number of over-eager contractors.

“We learned a great number of things,” last year, Ghilarducci said.

He said the U.S. Corps of Engineers was asked to lead the effort last year because state resources were stretched thin after responding to more than a dozen wildfires. This year, he said state officials can manage the cleanup and costs will be shared among state, federal and local authorities.

Cleanup is expected to begin in January and take about a year to complete, Ghilarducci said. State and federal officials are currently removing hazardous household materials from the damaged properties.

Don't miss the big stories. Like us on Facebook.
THE LATEST
House-approved $15 minimum wage has little chance in Senate

House Democrats approved legislation Thursday to raise the federal minimum wage for the first time in a decade, to $15 an hour, but the bill has almost no chance in the Republican-controlled Senate.

Rural Ohio county staggers from impact of opioid influx

The numbers are staggering: An average yearly total of 107 opioid pills per resident were distributed over a seven-year period in this rural county deep in Appalachia.

G-7 finance chiefs issue stark warning about Facebook’s Libra

Finance chiefs from the Group of Seven rich democracies issued a stark warning on Thursday that cryptocurrencies like Facebook’s Libra should not be allowed before “serious regulatory and systemic concerns” are put in check.