Napa Quake Economic Loss Between $500M to $1B: Estimate - NBC Bay Area


Coverage of the 6.0 Earthquake that Rocked the Napa Valley

Napa Quake Economic Loss Between $500M to $1B: Estimate



    No one has taken an exact toll of the cracked wine bottles spilled all over Napa winery floors.

    But according to one estimate, it's expected that the economic losses from Sunday's 6.0-magnitude Napa earthquake could range from anywhere between $500 million to $1 billion.

    At least, that's the preliminary estimate from CoreLogic-EQECAT, an agency that calculates catastrophe and hazard risks. In the report, the agency also noted that "there is a fair amount of uncertainty associated with this given the unknown extent" of the earthquake," and residential losses are about one half to one quarter of this loss estimate.

    If the loss exceeds $1 billion, the CoreLogic report states, it will be from uncertainty in commercial losses.That number is different than the damage estimate of buildings and structures damaged in the earthquake. No official number has been set for Napa yet. In Vallejo on Sunday, city leaders put the damage estimate at $5 million.

    Much of the loss, CoreLogic noted is because of where the earthquake occurred: In the heart of Napa Valley - the country's premier grape growing region, and a huge draw for tourists. A number of wine losses have been reported, which will contribute to the overall financial losses of this event. The vintners trade association says the wine growers contributes more than $13 billion of economic activity each year.

    And tourism is the second most important industry in the Napa region which is dotted with upscale and luxury boutique hotels, spas and inns.