Hawaii wildfire insured losses could top $4.5B: Moody’s

Moody’s RMS on Tuesday said insured losses from the wildfires Aug. 8-10 in Hawaii could exceed $4.5 billion.

The loss estimate reflects property damage, contents and business interruption across residential, commercial, industrial, automobile and infrastructure assets, a Moody’s RMS statement said.

The Newark, California-based catastrophe modeler said total economic losses should be $4 billion to $6 billion, and that most of the economic damage is expected to be covered by insurance, in the range of approximately 75% or more, because wildfire is a covered peril under typical insurance policies and the island has high insurance penetration rates.

Loss estimates incorporate damage assessments from multiple sources including satellite and aerial imagery in the worst-affected areas, as well as damage maps from the Maui Emergency Management Agency published on Aug. 11, 2023.

Most of the losses are expected to be from the town of Lahaina, where fire burned more than 2,100 acres and destroyed almost 2,200 structures. Moody’s RMS estimates the burn footprints in Lahaina and Kula wildfires include insured property value of $2.5 to $4 billion.

Loss estimates have been increasing over the past week.