Maui Wildfires – Update 1

According to The Pacific Disaster Center, as of 11th August 2023, damage assessments related to the Lahaina Fire resulted in an estimated total of 3,000 structures being severely damaged or destroyed; and nearly 2,200 acres burned. 86% of buildings exposed to the fire were classified as residential. These figures have remained constant in recent reporting.  The estimated cost to rebuild in Lahaina is projected at $6 billion.

Wildfires on Hawaii’s Maui Island and Big Island began on Tuesday 8^th August with Maui being the worst affected. The island had been suffering from a period of drought when wildfires were ignited, exacerbated by the prevailing winds from Hurricane Dora that passed to the south of the islands. The area of Lahaina on Maui has been devastated, many of the town’s structures levelled and businesses destroyed, with the latest death toll stated at 114 with a fear that it will likely rise significantly as search and rescue operations continue. According to Maui County, the Lahaina fire was 90% contained as of the 20th of August.

We remain mindful and empathetic that our clients and colleagues may well be closely affected by this situation and our thoughts and prayers are with all affected, especially the people of Hawaii.

Affected Areas

Power Outages

We continue to monitor Hawaiian Electric’s power outages and restoration efforts throughout the affected area.  Our tracking of this information can be found in the Resources section on the right-hand side of this page.

Transportation Routes

Roads and public transportation in and around the affected locations continue to be severely impacted.  Some routes such as the Honoapilani Highway (Route 30) remain closed through Lahaina Town.  Our tracking of the transportation routes affected by the fires can be found in the Resources section on the right-hand side of this page.

Affected Industries

MDD anticipates a number of claims in the Tourism & Hospitality, Restaurant, Retail and Wholesale, Construction, Utilities, Telecommunications, Education and Agriculture industries.

Business Interruption Coverage Issues

• Government assistance considerations
• Prevention of access – inability to access businesses due to the closure of roads
• Property damage to local businesses
• Public utilities – damage to providers of electricity, gas, sewage, and telecommunications
• Closure of premises by public authority – closure or evacuation of Insured premises
• Losses resulting from supply chain issues
• Early involvement of the appropriate experts can help with the need for any mitigation efforts.

MDD has considerable expertise in dealing with these types of claims and the complexities that may occur.  Experts like those of us at MDD will stress the need for proper audit protocols, controlling and sorting of costs and accounting for any potential saved expenses.