More than 2.6 million homes across 14 US states are at moderate to very high risk of wildfire damage during 2024’s wildfire season, with a total reconstruction cost of $1.3 trillion, according to a new report from CoreLogic, a provider of property insights and innovative solutions.
Data from the report shows that the western side of the United States has the greatest wildfire risk, with three states comprising 70% of the risk.
With 1,258,748 homes at risk, California sits as the state with the highest number of homes at moderate or greater risk of wildfire exposure.
California is then followed behind by Colorado, which has 321,294 homes at risk, then Texas, with 244,617.
In fourth place is Oregon with 129,567 homes at risk, which is closely followed behind by Arizona, with 124,603.
CoreLogic explained that these five states face an elevated level of risk because of the high number of homes in undeveloped areas, or with exposure to Wildland-Urban Interface, where properties are near wildlife such as trees, vegetation, as well as other flammable materials.
According to the report, the Los Angeles metropolitan area leads the country with the highest number of homes at risk, with more than 245,000 homes with moderate or greater risk of wildfire.
This represents a total reconstruction value of $186.6 billion although not all homes that experience a loss in a wildfire scenario will be a total loss, explained CoreLogic.
Jon Schneyer, CoreLogic’s director of catastrophe response, commented: “In recent years, we’ve seen wildfires occur in unexpected places, reinforcing the need to understand the risk landscape and take mitigation action. Both insurers and consumers have a role to play to ensure adequate protection.
“These numbers may seem overwhelming, but research shows that mitigation efforts make a real difference in potential losses from wildfires. The good news is there are actions people can take to lessen the risk.”
Moreover, with the US experiencing a number of devastating wildfires in recent years, CoreLogic noted how this demonstrates the importance of mitigation techniques, both on an individual property and community wide basis—which winds up having benefits for both homeowners and insurers.
Looking back, in 2018, a Camp Fire decimated more than 90% of the town of Paradise, California, causing billions of insured losses.
A recent collaborative study with CoreLogic, Milliman, and the town of Paradise, found that combining individual home and community-level mitigation strategies led to a 75% reduction in expected loss per property in high-risk areas like Paradise, which can also lead to lower insurance premiums too.
The post More than 2.6 million homes across 14 US states at moderate to very high risk of wildfire damage, CoreLogic appeared first on ReinsuranceNe.ws.