Wildfires Threaten Many Parts of the United States

Sept. 14, 2009 – Although California has received many well-deserved headlines in recent weeks and years regarding wildfires and has experienced eight of the 10 costliest wildfires in the United States over the past three decades, the Insurance Information Institute cautions people in other areas to remain vigilant of potential fire hazards.

States mostly located in the Southeast and Southwest United States reported the highest number of wildfires in 2008 with Texas, Oklahoma, Georgia, North Carolina, Alabama, Florida, South Carolina, Mississippi and Arizona joining California as the states reporting the largest number of wildfires in 2008. With drought conditions afflicting many areas of the United States during a given year, the potential for wildfires becomes even greater as well as the need to homeowners to protect their families and belongings.

“If your community is threatened by a wildfire, your first concern is to protect yourself and your family,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the Insurance Information Institute. “This means creating an evacuation plan and purchasing enough insurance to rebuild your home and replace all of your belongings in the event that they are completely destroyed.”

Since 1964, wildfires annually have inflicted an average $215 million in damages, according to A.M. Best. Typically, homeowners, renters and business insurance policies cover damages from smoke and fire up to policy limits, and comprehensive auto insurance will cover similar damage to properly insured vehicles, according to the Insurance Information Institute. And water damage from firefighting efforts generally are covered through the same policies.

To help prepare for a possible wildfire or other natural disaster, officials for the Insurance Information Institute say it is critical for people to ensure they have a suitable level of insurance protection to rebuild their homes and replace their valuables. If a home has been altered or improved or a new, valuable asset, such as fine art, jewelry or high-end audio-visual equipment, has been added to personal belongings, it’s important to have the increased value reflected in the insurance policy protection.

The National Association of Insurance Commissioners recommends homeowners and renters inventory valuables and belongings, including rarely used items, such as sporting goods, tools and holiday decorations, and photograph or record on video each room in the home. Keeping all sales receipts and canceled checks and making note of model and serial numbers also will help replace lost items, and purchasing additional protection for high-value items, such as jewelry, artwork and antiques, will ensure the value of high-dollar items won’t be completely lost due to a lack of proper insurance protection.

The National Association of Insurance Commissioners also advises people store copies of insurance policies and supporting inventory documentation in a fireproof and waterproof safe or in a safe deposit box and keep copies of digital pictures in e-mail or Web site accounts for easy retrieval. It also is helpful to know whether policies offer additional living expenses for a temporary residence in case a home or apartment is rendered unlivable due to a covered loss.