New Reports Forecast Potential Damage in California Fires

Dec 08, 2017

The California Department of Insurance announced that it has seized the assets and legal control of Merced Property & Casualty Company

Two new data reports are highlighting the level of residential property damage created by the ongoing California wildfires.

In CoreLogic’s hazard risk analysis, a total of 86,242 homes in Ventura and Los Angeles counties with a combined reconstruction cost value (RCV) of $27.7 billion are at some level of risk from the Thomas, Rye and Creek Wildfires. Within that total, 13,526, or 16 percent, with an estimated RCV of more than $5 billion are considered to be at significant risk of damage.

Separately, Realtor.com Chief Economist Danielle Hale issued a report stating that the uncontained fires are spreading from less-populated to more-populated areas, which could increase the damages to the residential housing market in Southern California. Within a quarter-mile of the current fire boundary, there are 10,906 residential properties worth $7.7 billion, or just over $700,000 per home. Within a half mile of the current fire boundaries, there are 21,639 residential properties, worth nearly $14 billion, or just over $645,000 per home.

Hale also noted that housing availability was already tight prior to the fires, and the ability to supply housing after the fires are fully extinguished will be a major issue impacting the state.

In view of the fires, the Office of the Comptroller of the Currency (OCC) issued a proclamation allowing national banks and federal savings associations directly affected by the ongoing emergency to close. The OCC added that these branches and offices “should make every effort to reopen as quickly as possible to address the banking needs of their customers.”

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Phil Hall

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Dec 08, 2017

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