Insured Maui fire losses likely to top $1 billion

Destroyed homes and cars are shown, Sunday, Aug. 13, 2023, in Lahaina, Hawaii. Hawaii officials urge tourists to avoid traveling to Maui as many hotels prepare to house evacuees and first responders on the island where a wildfire demolished a historic town and killed dozens. Photo: Rick Bowmer/AP

It will be some time before the full extent of the devastation done in areas of Maui, Hawaii by wildfires that ignited August 8, is fully known, but some across the insurance and financial industry have already released analysis on how much of a hit they believe insurers may take from this disaster. While the estimates vary, they all have one common conclusion: Insured losses from the fires are likely to surpass $1 billion.

Karen Clark & Company

Using their U.S. Wildfire Reference Model, Karen Clark & Company (KCC) estimates insured property losses from the Lahaina fire will be around $3.2 billion. They report more than 2,200 structures existed within the Lahaina fire perimeter, with over 3,000 total buildings affected, including secondary impacts like branding and smoke damage.

In addition to factors of drought and winds from passing Hurricane Dora, KCC also attributes the fires’ rapid spread in Lahaina to the high proportion of wood frame and older construction buildings in the town.

CoreLogic

When it comes to structures vulnerable to the fires, CoreLogic estimates there were 3,088 residential home with $1.3 billion in total reconstruction cost within three preliminary wildfire perimeters on Maui: