Insured losses from three California wildfires already top $104 million and are expected to climb much higher as policyholders and adjusters gain access to the still smoldering region–with one catastrophe modeling firm projecting that covered claims could total as much as $500 million.

Fires erupted on Nov. 13, consuming more than 43,000 acres and destroying or damaging over 1,000 residences and other structures.

The last of the three fires–the Sayre Fire in Los Angeles County–was 85 percent contained as this story went to press, while the Tea and Freeway Complex fires were completely under control.

Approximately 900 claims had been filed with insurers at presstime, amounting to about $104 million in insured losses, but that number is expected to rise as more claims come in, said Tully Lehman, a representative with the Insurance Information Network of California. He said the figure is expected to change daily. (Keep checking the NU Online News Service at www.propertyandcasualtyinsurancenews.com for the latest damage figures.)

A representative for State Farm–the state's largest homeowner insurer–said that as of Nov. 19, the company had received about 450 claims from the three fires.

EQECAT, the Oakland, Calif.-based catastrophe modeling firm, said based on its calculations, the ultimate loss will be between $300 million and $500 million.

Based on demographics and 10-year loss aggregate calculations, the Tea fire is considered the worst event, according to EQECAT, while the other two were not considered extreme losses.

Despite the loss of about 500 mobile homes alone in the Los Angeles area, the Sayre Fire was not considered an extreme loss from a catastrophe perspective, because of the high population in the vicinity, EQECAT said.

To help victims of the fire, California Insurance Commissioner Steve Poizner issued an insurance emergency declaration on Nov. 17 that allows insurers to use non-state licensed adjusters to settle claims. The commissioner also dispatched a disaster fraud task force to the area of the three fires to deal with any cases of suspected fraud.

“Hundreds of people have lost their homes during this past week's wildfires, and we must do everything we can to make sure their insurance claims are handled as quickly as possible,” said Mr. Poizner in a statement.

The wildfires claimed more than 1,000 structures, including apartment buildings, and over 50,000 people had to be evacuated to get them out of the blazes' path.

The Tea Fire, which erupted Nov. 13 in Santa Barbara County, was notable because its location in Montecito contains a number of celebrities' homes, reportedly including those of Oprah Winfrey, Rob Lowe, John Cleese and Michael Douglas.

At one point, about 3,500 structures were threatened.

The most devastating damage took place when fire swept through the Oakridge Mobile Home Park in Sylmar, Calif., wiping out close to 500 mobile homes. The incident prompted California Gov. Arnold Schwarzenegger to call for changes in building codes to better protect mobile homes from fire. He has declared a state of emergency in all three counties.

As of Nov. 19, there were reports of several injuries, but no deaths. Authorities where checking whether any residents had died in the Oakridge Mobile Home Park fire.

The cause of all three fires remains under investigation.

While not releasing much information, insurers said they have dispatched their claims-handling people throughout the affected region.

Greg Sherlock, a representative for State Farm, said people are just now beginning to go back to their homes, thus the number of claims is expected to increase.

Farmers Insurance Executive Vice President Jerry Carnahan, who helped settle claims in Yorba Linda, Calif., described scenes of devastation there, with homes built in heavily wooded areas burned to the ground.

In some neighborhoods in Orange County, he said he saw areas where one home was lost, but a neighbor's home remained standing–something Mr. Carnahan attributed to the “incredible and valiant effort of fire and emergency crews to save a lot of homes.”

He said the company has around 60,000 exposures in the affected areas. Some of those losses, he said, involve some expensive homes in exclusive areas.

“It is an emotional situation,” he said. “As the fires are winding down, we are in the wind-up phase.”

Farmers is ranked the second-largest homeowners insurer, according to figures supplied by Highline Data, a company affiliated with National Underwriter.

Gary Kerney, assistant vice president of Property Claim Services at the Jersey City-based Insurance Services Offices, said PCS is “evaluating each of the fires in California with respect to declaring any of the fires as a catastrophe. Since so many residents have been evacuated from the threatened areas, it may take some time to acquire loss reports.”

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