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AM Best flags ‘considerable’ insured losses from Spokane wildfires

AM Best said the Complex Fire has burned over 10,000 acres since August 1, destroying more than 700 homes and evacuating about 65,000 people, with loss estimates depending on coverage levels.

Reported · Written up by our desk · Reinsurance

AM Best warned that areas in and around Spokane, Washington are likely to face “considerable insured losses” from ongoing wind and fire damage, though it said it is too early to quantify the final magnitude. The rating agency pointed to three major wildfires known collectively as the Complex Fire, which has burned over 10,000 acres since it began on August 1, 2026, destroying more than 700 homes and forcing the evacuation of approximately 65,000 people.

AM Best said the fire’s cause is still under investigation but noted that high winds and hot, dry weather have helped fuel the blaze. It added that the size of insured losses will depend in part on how much coverage home and business owners secured for their properties.

The rating agency also said secondary effects could raise insurance claims-related costs, including a demand surge and ongoing inflationary pressures. It noted that insurers with property portfolios concentrated in Washington would likely feel the wildfire losses the most.

AM Best further warned that if losses prove large enough, Washington’s homeowners’ insurers could face assessments under the state-mandated FAIR plan. The agency described Washington’s FAIR plan as similar to California’s, noting it is not taxpayer-funded and that all insurers in the state are required to be members.

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