USAToday.com
The aftermath of wildfires in Maui County, Hawaii, has resulted in up to $6 billion in economic losses. According to Moody’s RMS, losses include “property damage, contents, and business interruption, across residential, commercial, industrial, automobile, and infrastructure assets.” Furthermore, the estimated $4 to $6 billion in damages only estimates the physical losses, not the long-term macroeconomic effects.
Insurance is expected to cover approximately 75% of the losses due to the island’s high insurance penetration rates. Most of the damage is concentrated in Lahaina, where insured property values range from $2.5 billion to $4 billion.
With construction costs estimated at 44% more than the mainland, rebuilding is expected to be expensive.