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Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Catastrophes
SO FAR DEVASTATING LOS ALAMOS WILDFIRE IS EXPECTED TO COST $70 MILLION IN INSURED DAMAGE-AND THAT PRICE TAG IS EXPECTED TO RISE
May 26, 2000 - With approximately 6,000 claims filed so far, the insurance industry has put a preliminary price tag of $70 million on the insured damage caused by this month's devastating Cerro Grande Wildfire in Los Alamos, New Mexico. 260 homes were destroyed when the blaze raged out of control on May 10, 2000. Some 25-thousand residents of Los Alamos were evacuated, along with several surrounding communities. The estimated insured losses compiled by Property Claims Services include homes, automobiles and businesses either destroyed or damaged by the fire. It also covers the additional living expenses paid out by insurance companies to thousands of citizens who were forced out of their homes during the evacuation and while they are waiting for their home to be restored.
The early damage estimates are based on the 6000 claims filed so far and that number is expected to rise as policyholders continue to work with insurance companies to determine their costs to rebuild and restore their property. "The insurance industry has brought in hundreds of national catastrophe team members to the area and they will stay in that area as long as they are needed," said Rocky Mountain Insurance Information Association Executive Director Carole Walker. "In the aftermath of the Oakland Hills fire, insurance companies maintained a presence for up to three years after the blaze."
Insurance Industry Declares Los Alamos Wildfire a Catastrophe
The insurance industry has declared the Cerro Grande Fire a national catastrophe. A catastrophe defined by insurers is any disaster that exceeds 25-million dollars in insured losses. The most expensive fire in terms of insured losses was the October 1991 Oakland Hills fire which caused $1.7 billion in insured losses (about $2 billion in today's dollars). Catastrophic fires account for 3% of insurance losses. That compares to 33% for hurricanes, 32% for tornadoes and 13% for earthquakes.
WHY ARE WE AT RISK?
The tinderbox conditions that helped fuel the Los Alamos blaze exist throughout the Rocky Mountain Region. In addition, each year, the area's risk for urban wildfires increases because our growing population is building new communities that once were wild land areas surrounding established cities and towns. Where we choose to live, combined with our rapid growth, is straining the resources of our fire departments, which no longer can get a fire engine to every home at risk.
HOW CAN I HELP FIREFIGHTERS SAVE MY HOME?
- Make it easy for firefighters to get to your home. Roads need to be wide enough to accommodate fire trucks, and there has to be a place for them to turn around. Driveways and bridges must be strong enough to carry heavy emergency vehicles. Identify at least two ways to and from your house and make sure they're well marked. All access routes to your home should be free of low hanging tree branches and cleared of flammable vegetation at least 10 feet from roads and five feet from driveways .
- Proximity to a quality fire department is also one of the greatest considerations that your insurance carrier will use in determining your homeowners insurance premium.
- Maintain an emergency water supply that meets fire department standards, such as a community water hydrant system, a cooperative emergency storage tank with neighbors, or a minimum storage supply of 2,500 gallons on your property. If your water comes from a well, consider an emergency generator to operate the pump during a power failure. Clearly mark all water sources, and create easy access to your closest emergency water source.
HOW CAN I SLOW DOWN A WILDFIRE HEADED TOWARD MY HOUSE?
- Create a 30-foot defensible space around your home by removing as much flammable material as you can. Replace flammable vegetation with fire resistive plants.
- Reduce the number of trees in heavily wooded areas by spacing native trees and shrubs at least 10 feet apart. On trees taller than 18 feet, prune lower branches within six feet of the ground.
- Remove branches overhanging the roof or coming within 10 feet of the chimney. Clean all dead leaves and needles from the roof, gutters, and yard.
- Install a roof that meets a fire classification of "Class C" or better. Cover the chimney outlet and stovepipe with nonflammable screening no larger than half-inch mesh.
- Install dual- or triple-paned windows, and limit the size and number of windows that face large areas of vegetation.
- Put woodpiles and liquid propane gas tanks at least 30 feet from all structures and clear away flammable vegetation within 10 feet of those woodpiles and propane tanks.
WHAT DO I DO IF A WILDFIRE TARGETS MY HOUSE?
- If you have time before you evacuate your family and pets (Your family has an evacuation plan in place, right?), back your car into the garage, leave the key in the ignition, and close the garage door. Close windows and doors to the house, and close all inside doors.
- Take down drapes and curtains.
- Place a ladder against the front of the house.
- If you have a combustible roof, wet it down or turn on roof sprinklers.
- Turn off the gas at the meter and the butane tank.
- Place fire fighting tools, such as 100 feet of pre-connected garden hose, a shovel, a rake, a bucket, and containers filled with water, in an accessible place.
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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