Wildfire Damages Exceeding $55 Million

By Daniel Hays

NU Online News Service, June 24, 4:30 p.m.EST?Wildfires raging through Colorado and Arizona havecaused insured property damage worth more than $55 million so far,according to insurance groups and local sources.

Carole Walker, a representative with the Rocky MountainInsurance Information Institute in Englewood, Colo., said figuresfrom insurers had come in for two fires.

She said the totals were $7.5 million for the Iron Mountain Firenear Canyon City, and $6.4 million for the Coal Seam Fire nearGlenwood Springs.

An estimate from state assessors for the Hayman Fire was $15million, which would bring the total to $28.9 million.

Ms. Walker said the Hayman Fire damage is probably much higher,"We are hearing 114 homes damaged," she said, noting that it washard to figure the cost because Hayman, which is southwest ofDenver, is a very diverse area.

Colorado was given a Presidential Disaster Declaration on June19.

Jim Fredrickson, a representative for the Arizona InsuranceInformation Association in Phoenix, speaking of the conflagrationthere, said "it will be the most expensive wildfire in the historyof Arizona, without question."

Homes in the affected areas, Mr. Fredrickson said, range fromsmall cabins to homes worth $500,000.

He said at this point he had no numbers to offer, althoughcompanies with the association "all say they have a lot ofexposure." He noted that with fires still raging, adjusters havebeen mainly confined to staging areas.

Insurers have told the Insurance Information Institute in NewYork that 200 homes could be affected, according to LorettaWorters, a representative with the Institute. With the median homevalue at $131,000, that would amount to property destruction of$26.1 million.

Dave Dasgupta, speaking for the Insurance Services Office inJersey City, N.J., said that ISO has not rated the fires acatastrophe at this point because information is lacking and "we'remonitoring the situation."

ISO declares a catastrophe when $25 million in insured lossesoccur and a significant number of policyholders and insurers areaffected.