AIR’s California wildfires estimate increases four-fold

AIR Worldwide has increased its insured loss estimate for October’s Californian wildfires to between $8bn and $10bn, up from $2bn–$3bn stated previously.

The catastrophe modelling firm said the revised figure reflects new information about policy terms and a revaluation of replacement values for high-value homes.

AIR’s loss estimate covers damage to residential and commercial properties, as well as motor and direct business interruption losses. The firm said residential properties are likely to be the largest cost, adding that uncertainty continues regarding losses to vineyards and wineries.

The fires began in early October as a heatwave sent temperatures soaring, affecting several regions in California including Tubbs, Nuns, Atlas, Redwood and Sulphur.