Wildfires pose $27.7 billion home risk in Southern California

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An analysis shows that the 86,000 homes at some level of risk from the raging Southern California wildfires have a combined reconstruction value of $27.7 billion.

Catastrophe risk modeling specialist, CoreLogic, studied the Thomas, Rye and Creek wildfires and issued their findings.

At more than 234,000 acres, the Thomas Fire is the fifth largest blaze in modern California history. It’s torched an area larger than all of New York City.

A total of 1,000 structures have already been destroyed by the fires.

A man was reported to have died in his car along an evacuation route. No other deaths have been reported.

A combined 86,242 homes are at risk, with the majority, 72,716 homes or 84%, are at either low or moderate risk of damage. The homes at low or moderate risk of damage have a reconstruction value of about $22.2 billion.

Firefighters fight back flames that threaten homes in Carpinteria, Calif.

Firefighters fight back flames that threaten homes in Carpinteria, Calif.

The remaining 13,526 homes, or 16% are at significant risk of damage, with a reconstruction value of more than $5 billion.

In a statement, CoreLogic warns that wildfires can spread easily and rapidly to adjacent properties and cause substantial damage even if a property isn’t actually considered to be high risk in its own right.

Insurers and reinsurers experienced heavy catastrophe losses in the third-quarter of 2017 as well as the costly California wildfires that occurred in October.

According to some industry analysts the latest wildfires could add as much as $2 billion to the insured loss tally from wildfires in the region.

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