Home›Insurance›Reinsurance›Spokane wildfires seen reaching at least hundreds of m…

Spokane wildfires seen reaching at least hundreds of millions in insured losses

Gallagher Re estimates the fire tally could climb toward about 1,100 structures destroyed as assessments continue.

Reported · Written up by our desk · Reinsurance

Reinsurance broker Gallagher Re says wildfires around Spokane, Washington, could produce insured losses in the hundreds of millions of dollars, with a plausible chance of becoming a billion-dollar industry loss event. The firm expects the event to rank among the costliest wildfires for insurers in Washington state history.

Gallagher Re linked the damage to multiple fires that started in early August, with the Old Trails Fire accounting for much of the destruction across several neighborhoods near the Spokane River. The firm cited new data indicating more than 700 homes, businesses, and other structures have been destroyed so far.

The broker said the count could still rise as damage assessments continue, and that fire officials suggest the total may approach 1,100 based on available aerial imagery. It also noted Spokane has about 230,000 residents, and the surrounding Wildland-Urban Interface faces heightened exposure due to dry grasslands and pine forests alongside expanding residential areas.

Gallagher Re pointed to weather conditions that preceded the fires, including an unusually warm and dry winter in 2025/26 that left eastern Washington with below-normal snowpack and reduced soil moisture. It also said AM Best has flagged that areas in and around Spokane will suffer considerable insured losses from ongoing wind and fire damage, though it is too early to precisely estimate the magnitude.

More like this

Sources