September 14, 2011
Houston insurance companies say the wildfires that have ravaged the area have given way to a record number of fire claims in Texas.
Insurance Council of Texas Spokesman Mark Hanna told The Houston Chronicle that wildfire-related damages are estimated at $250 million, though the area most devastated by the fires—Balstrop—hasn’t yet been included in that figure.
So far, State Farm says it has received 800 fire claims—700 from Balstrop alone—and has already paid out $28 million. Meanwhile, USAA says its gotten 425 claims from the Balstrop area.
In 2009, statewide fire claims amounted to $115 million; this year’s losses are more than double that.
Experts speculate that the landslide of claims could add up to increased insurance rates.
“A single event in a single year doesn’t necessarily change rates, but it can contribute to a cumulative impact,” said Texas Department of Insurance Spokesman Jerry Hagins.
Of greater importance, says Insurance Information Institute President Robert Hartwig is whether nor not Texas will see an increase in wildfires in the coming years.
“If it’s going to be the case that Texas is going to be drier and hotter and wildfires will be more frequent, that will impact the cost,” said Hartwig. “It affects those areas that are prone to risk, just like somebody in El Paso isn’t paying for hurricane risk.”
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