As over 50 large fires are burning only this week, the expenses of extinguishing fires keep getting higher, and funds from fire risk reduction programs are being diverted to meet the ever rising costs, reports CNBC.
According to experts, the economic damage of wildfire is significantly underestimated. The long term impacts include the cost of repairing and replacing homes, which are usually covered by insurance. However, uninsured property damage, loss of tourism and property value are often not accounted for. Air and water quality deterioration can raise the health-care costs of locals and the burned out lands are more vulnerable to flood risks.
Currently 40 percent of the 115 million single-family homes in the U.S. are situated in areas prone to fire risk, according to Corelogic, a real estate research firm.
"To the extent that more structures are being built in vulnerable areas, that is leading to higher insurance cost for people who live in those areas," Robert Hartwig, president of the Insurance Information Institute said. "The cost of insuring property in most parts of the country is rising because of an escalation of natural disasters."