Insured-Loss Estimate for Largest Texas Wildfire Rises to $325M

NU Online News Service, Dec. 8, 1:01 p.m. EST

The largest of Texas' 2011 wildfires, the Bastrop fire, is now expected to cause $325 million in insured losses, up from previous estimates of $250 million, according to the Insurance Council of Texas.

Overall 2011 wildfire insured losses are still projected to hit $500 million, making 2011 by far the costliest year for wildfires in the state. The previous record was $115 million in insured losses in 2009, ICT says.

The ICT says the Bastrop fire consumed thousands of acres of pine forest and destroyed 1,673 homes.

“The insurance industry was handing out checks the day after the fire to homeowners who had lost everything,” says Mark Hanna, ICT spokesman, in a statement. “The recovery process will simply take time as insurers continue to pay for additional living expenses for homeowners who are either rebuilding or seeking a new place to call home.”

Hanna tells NU Online News Service that the $500 million loss estimate for the 2011 wildfires remains the same despite the increased estimate for the Bastrop fire because the other fires did not do as much damage to insured property as previously thought. Many of those fires burned outside of population centers, he notes, while the Bastrop fire struck suburban areas.