Aid Trickles In As Insurance Losses and Risks From Maui's Wildfires Rise
As Hawaii deals with the aftermath of devastating wildfires that have claimed more than 100 lives and up to 2,200 buildings, the economic fallout is just beginning to take root.
The Biden Administration announced aid this week that could provide $700 per household to those critically impacted by the wildfires in Maui. However, that may fall short as the insurance losses for property damage could top $3.2 billion, the largest ever for the state.
Insured losses from Maui's wildfires, or the amount that could be paid out to property owners, could top $3.2 billion, according to an estimate from modeling firm Karen Clark & Company.That would be Hawaii's biggest disaster-related insurance payout on record, ahead of roughly $3 billion in damages from Hurricane Iniki, which hit the island chain in 1992.
The cost to rebuild damaged areas was pegged at roughly $5.5 billion by the Maui Emergency Management Agency (MEMA) and Pacific Disaster Center on August 11. They also revealed that about 86% of the impact was seen in areas classified for residential use.
This is especially important as property values in Hawaii are some of the highest in the nation, with the average home in the state worth more than $836,000, according to Zillow, while the median-priced home sold for $709,000 in June.The median home price for the island of Maui was about $1 million last month.
However, in the short-term, Maui residents whose lives have been upended by the fire may face another tough situation—offers to buy their land from predatory property developers.
Hawaii Governor Josh Green issued a statement Tuesday urging Maui residents who are looking to sell their property to exercise caution, saying predatory buyers including developers could scoop
Read more on investopedia.com
