1000 Calif. Homes Burned, Heavy Insured Loss Foreseen

The Tea Fire, which erupted Thursday in Santa Barbara County, burned at least 1,940 acres and destroyed 210 residences and damaged 9 structures.

That fire was notable because its location in Montecito contains a number of celebrities' homes reportedly including Oprah Winfrey, Rob Lowe, John Cleese and Michael Douglas.

The third fire, named the Freeway Complex Fire, was located in Orange County and Riverside County between Corona, Chino Hills, Yorba Linda, Brea and Anaheim. The fire, which erupted on Saturday morning, had burned 28,889 acres as of Monday morning, and was 40 percent contained.

At one point about 3,500 structures were threatened. According to early figures, 75 residences (including homes and apartment buildings) were damaged or destroyed in Anaheim; 163 residences were damaged or destroyed in Yorba Linda; 17 residences were damaged or destroyed in Corona; and fur homes were either damaged or destroyed in Brea.

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.

So far, there have been reports of several injuries, but no deaths reported. 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.

State Farm, the largest underwriter of homeowners insurance in California, (according to Highline Media a subsidiary of Summit Business Media Company the parent firm of National Underwriter), said it received over 100 claims by midday yesterday.

Greg Sherlock, a spokesman for State Farm, said people are just now beginning to go back to their homes and the number of claims is expected to increase. He said claims associates are moving their location from Corona to Diamond Bar where the need is expected to be greater.

While winds have calmed making firefighting easier, the losses in some areas are expected to be significant, he said, but it will be a few days before the picture becomes clear.

Farmer's Insurance executive vice president Jerry Carnahan was helping settle claims in Yorba Linda, Calif., and described scenes of devastation there where homes built in heavily wooded areas were burnt to the ground.

In some neighborhoods in Orange County he saw areas where one home was lost, but the neighbor's 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 received at least 200 claims so far, and more are expected as people return home. 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 Highline Data.

Gary Kerney, assistant vice president of Property Claim Services at Jersey City, N.J.-based Insurance Services Offices Inc. said in a statement, "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."