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The Jerusalem Post

Hawaii wildfires to cause second-largest total insured loss in state's history

 
 A view of flames as wildfires engulfed the historic town of Lahaina, Maui, Hawaii, U.S. August 9, 2023. (photo credit: Erin Hawk/Handout via REUTERS)
A view of flames as wildfires engulfed the historic town of Lahaina, Maui, Hawaii, U.S. August 9, 2023.
(photo credit: Erin Hawk/Handout via REUTERS)

An inferno, which started earlier this week, ravaged the historic resort town of Lahaina that was once the capital of the Hawaiian Kingdom.

The total insured loss from the ongoing wildfires on Maui island is expected to be the second largest in Hawaii's history, according to catastrophe modeling firm Karen Clark & Company (KCC).

The fast-moving inferno, which started earlier this week, ravaged the historic resort town of Lahaina that was once the capital of the Hawaiian Kingdom.

The impact of the fire would be second only to the Hurricane Iniki, which hit Hawaii in 1992, based on today's property value, KCC said in a note on Friday.

The firm estimates the total area burned at about 2,200 acres, while roughly 3,500 buildings within the fire perimeter.

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Search teams on Maui on Friday would comb through the charred ruins of Lahaina looking for more victims of the wildfire, with officials expecting the death toll of 55 to rise.

 Views from the air of the community of Lahaina after wildfires driven by high winds burned across most of the town several days ago, in Lahaina, Maui, Hawaii, U.S. August 10, 2023.  (credit: REUTERS/MARCO GARCIA)
Views from the air of the community of Lahaina after wildfires driven by high winds burned across most of the town several days ago, in Lahaina, Maui, Hawaii, U.S. August 10, 2023. (credit: REUTERS/MARCO GARCIA)

Economic impact

Insurance broker Aon said the extreme devastation to homes, businesses and other structures in Lahaina would likely drive economic and insured losses into the hundreds of millions of dollars.

Since the situation is ongoing, losses may continue to rise and significant disruption to tourism in Maui, a major part of the local economy, would be realized for the foreseeable future, Aon in its weekly catastrophe report said.

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