California wildfire loss estimate $2 billion: ISO

Despite rating agency estimates of a much higher insured loss from last month’s California wildfires, insurers should face a bill of about US$2.04 billion says the US Insurance Services Office (ISO). The ISO’s property claim services unit says the fires which hit San Diego and San Bernadino counties in late October/early November will bring in about 19,000 claims on homeowner, business and vehicle policies.The “Cedar Fire”, which destroyed more than 2,200 buildings just 30 miles east of San Diego, will bring in about US$1.06 billion in claims. The “Old Fire”, which merged with the “Grand Prix” and “Padua” fires just outside San Bernadino, destroyed more than 1,100 buildings and caused US$975 million in insured losses.Recently, rating agency Moody’s predicted insured losses from the fires could hit US$3.5 billion.