The Mountain Fire in Southern California has burned approximately 20,000 acres, destroyed 243 structures, and damaged an additional 127 as of the latest update, according to a report from Aon.
Total losses from the wildfire are expected to reach hundreds of millions of dollars, with insurance claims anticipated to follow soon, AM Best reported.
The fire, which began on Nov. 6, was fueled by extreme wind gusts exceeding 75 mph and dry air conditions. Aon noted that these conditions were driven by a Santa Ana wind event, a weather pattern that brings hot, dry air from mountainous terrain, creating ideal conditions for wildfire development.
Persistent drought conditions in the Santa Clarita area likely exacerbated the situation, Aon said in its catastrophe report.
The California Department of Forestry and Fire Protection reported that the fire is now 91% contained and has caused five civilian injuries and one firefighter injury. Nearly 40,000 residents and 3,800 structures remain at risk, according to Aon's assessment. Damage assessment and recovery efforts have already begun, though the fire remains active in some areas.
California Insurance Commissioner Ricardo Lara has previously issued one-year moratoriums on policy cancellations and nonrenewals for residents affected by wildfires in other counties, including the Shelly Fire in Siskiyou County and the Bear Fire in Sierra County.
A similar moratorium is expected to be implemented for Ventura County residents impacted by the Mountain Fire, according to a statement from the regulator.
Aon's report underscores the financial and human impact of wildfire, with significant losses expected as the insurance industry prepares for claims arising from the event.
Recently, the American Property Casualty Insurance Association (APCIA) issued a statement following the California Department of Insurance's announcement that final wildfire catastrophe modeling regulations have been submitted to the Office of Administrative Law for approval.
The statement, attributed to Mark Sektnan, APCIA vice president of state government relations, emphasizes the significance of forward-looking catastrophe models in stabilizing California's insurance market.
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