US, Canada wildfire insured losses could reach billions

US, Canada wildfire insured losses could reach billions – Aon | Insurance Business Canada

Catastrophe & Flood

US, Canada wildfire insured losses could reach billions – Aon

More than a thousand structures destroyed by the disasters

Catastrophe & Flood

By
Kenneth Araullo

Wildfires in the United States and Canada have damaged or destroyed around 1,200 structures, with insured losses potentially reaching hundreds of millions to billions of dollars, according to Aon.

Millions of acres are ablaze across both countries, with the most significant property damage resulting from the Park Fire in California’s Butte and Tehama counties. The California Department of Forestry and Fire Protection reported that the fire has destroyed 542 structures and damaged 50 more.

A 42-year-old California man faces arson charges for allegedly starting the Park Fire by pushing a burning car into a gully on July 24. The fire has scorched nearly 400,000 acres, and evacuations are ongoing, with only 24% containment as of Aug. 2, according to Cal Fire.

Cal Fire indicated that while the number of fires in the state this year aligns with the five-year average, the acreage burned is significantly higher.

In a report from AM Best, they warned that “climate predictions are indicating above-normal temperatures for all of California, resulting in an abnormally high fire risk for the remainder of the year.”

Other wildfires have affected nearly 250 structures, including four in Oregon and one each in California and Idaho, as noted by Aon.

In Canada, the Jasper Complex Fire has destroyed at least 358 structures, comprising roughly 30% of the town of Jasper, impacting both commercial and residential buildings. The fire has displaced 17,500 residents and required the evacuation of 25,000 people, mostly tourists, from the park.

The Jasper Complex is among nearly 160 active fires in Alberta and around 400 in neighboring British Columbia. Aon noted that few of these fires currently pose a threat to people or property.

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