U.S. disasters cause insurance double whammy for pandemic-hit businesses

By Suzanne Barlyn and Alwyn Scott

(Reuters) – As insurers brace for an expensive natural-disaster season because of storms and wildfires ravaging parts of the United States, the novel coronavirus is giving them an odd financial break.

Many companies that were damaged or evacuated because of natural catastrophes were already generating far less revenue due to the pandemic. That means they will get lower payouts upon filing business-interruption claims, according to analysts, lawyers and industry sources.

It is another hit for small businesses that rebuilt after major disasters in recent years, only to see revenue screech to a halt during the pandemic, and then enter another aggressive disaster season. It could leave some companies unable to survive, said John Ellison, an attorney at Reed Smith LLP who has represented policyholders in cases stemming from hurricanes Katrina, Rita and Sandy.

“There is a reasonable chance that any business in that situation is not going to make it,” he said.

Claims are never simple to file or process, with insurers, lawyers and accountants quibbling over calculations. They rarely cover all losses.

The past several months have been particularly tough for policyholders in states like California, Iowa and Louisiana. They were already battling insurers in court over pandemic claims and then suffered damage from Hurricane Laura, wildfires and a destructive, fast-moving storm that devastated parts of the Midwest.

Most disaster claims are for property damage, but a “significant” amount still comes from business interruption, based on the way insurers have attributed losses after major disasters, said Piper Sandler analyst Paul Newsome.

Insurers do not disclose how much of their total disaster losses are for business interruption.

The amount of payouts for disasters during the pandemic depend on the business, said Loretta Worters, a spokeswoman for the industry-funded Insurance Information Institute. A liquor store whose business is booming might have higher revenues than six months ago, she said.

Many insurers make a 12-month income projection when calculating the claim, Worters said.

Business-interruption policies cover losses based on recent income trends, so payouts will almost certainly be lower for companies whose operations suffered because of the pandemic, said Credit Suisse analyst Mike Zaremski. Government-imposed lockdowns, supply-chain disruptions and weaker customer demand have hurt many businesses.

That is the situation in Guerneville, California, a wine region where many businesses had to evacuate because of wildfires after already being hurt by the pandemic.

For instance, Big Bottom Market, a gourmet deli there, had to close from March to May. When it re-opened, business was initially off by 40% compared with the prior year, said owner Michael Volpatt. Introducing new services like catering stemmed the tide, but July revenue was still down 9%, Volpatt said.

An Aug. 18 mandatory wildfire evacuation forced Big Bottom Market to close for 12 days. The store escaped property damage but lost over $20,000 in revenue, said Volpatt, who is preparing an insurance claim.

Business interruption was already a sore point between insurers and customers, who are battling in court about whether policies cover pandemics. Only a few of nearly 1,000 lawsuits that are pending have produced rulings, with mixed results.

Hair-salon owner Berlin Fisher is a plaintiff in one such case filed in July. A Hiscox Ltd unit denied business interruption claims for Fisher’s two California salons, whose revenue was wiped out by a measure barring indoor haircuts, he said. Fisher’s San Francisco salon went under as the pandemic dragged on.

A Hiscox spokesman declined comment.

In June, Fisher began cutting hair under a tent in Guerneville to make ends meet. He evacuated four weeks later because of the fires and filed another claim, which is pending.

Fisher pays about $100 monthly for the policy, but said it may not be worth the expense.

“There’s a huge discrepancy between what people who sold the insurance told me then and what actually happens,” he said.

(Reporting by Suzanne Barlyn and Alwyn Scott; Editing by Lauren Tara LaCapra and Dan Grebler)

California braces for more lightning as wildfires kill 7

By Adrees Latif

AETNA SPRINGS, Calif. (Reuters) – California braced for more lightning storms, which have sparked over 600 wildfires in the past week, but firefighters got some relief as temperatures eased off record highs.

The worst of the blazes, including the second and third largest in California history, burned in the San Francisco Bay Area with roughly 240,000 people under evacuation orders or warnings across the state.

Much of Northern California, including the Sierra Nevada Mountains and coast, was under a “red flag” alert for dry lightning and high winds, but the National Weather Service dropped its warning for the Bay Area.

Close to 300 lightning strikes sparked 10 new fires overnight and more “sleeper fires” were likely burning undiscovered in areas shrouded by dense smoke, Governor Gavin Newsom said.

One huge blaze burned in ancient coastal redwood forests south of San Francisco that have never seen fire due to usually high relative humidity levels, Newsom said.

“We are in a different climate and we are dealing with different climate conditions that are precipitating fires the likes of which we have not seen in modern recorded history,” Newsom told a news briefing.

The wildfires, ignited by over 13,000 lightning strikes from dry thunderstorms across Northern and Central California since Aug. 15, have killed at least seven people and destroyed over 1,200 homes and other structures.

Smoke from wildfires that have burned over 1.2 million acres (485,620 hectares), an area more than three times larger than Los Angeles, has created unhealthy conditions for much of Northern California and drifted as far as Kansas.

The LNU Complex, the second largest wildfire in state history, began as a string of smaller fires in wine country southwest of Sacramento but has merged into a single blaze that has burned around 350,000 acres of Napa, Sonoma, Lake, Yolo and Solano counties.

It was 22% contained as of Monday while to the south the SCU Lightning Complex was nearly as large, at 347,000 acres, and only 10% contained.

“I’m nervous, I don’t want to leave my house, but lives are more important,” Penny Furusho told CBS television affiliate KPIX5 after she was told to evacuate from the south flank of the SCU fire.

Over 14,000 firefighters are on the wildfires, with 91 fire crews traveling from seven states and National Guard troops arriving from four states, Newsom said.

(Reporting by Adrees Latif in Aetna Springs, California; Editing by Tom Brown)

‘Lightning siege’ sparks wildfires across California wine country

By Steven Lam

VACAVILLE, Calif. (Reuters) – Dozens of lightning-sparked wildfires caused thousands of evacuations in Northern California’s wine country on Wednesday, and Colorado battled its second-largest fire ever as a heat wave supercharged blazes across the U.S. West.

A group of fires in Northern California covering over 46,000 acres (18,615 hectares) has destroyed at least 50 structures in a hill and mountain area near Vacaville in Solano County, authorities said.

The city of 100,000, about 30 miles southwest of Sacramento, was under a partial evacuation order after flames from the LNU Lightning Complex fire raced through homesteads and ranches on its west flank. Social media videos showed a number of houses on fire, and residents were forced to flee their homes during the night.

The blazes follow devastating fires across Northern California in 2017 that killed 44, wiped out numerous wineries and destroyed nearly 9,000 homes and other structures.

“In the last 72 hours we’ve experienced an historic lightning siege with 10,849 strikes causing more than 367 new fires,” said California Department of Forestry and Fire Protection spokeswoman Lynnette Round.

So-called red flag high winds are fanning flames caused by the lightning in scrub and woodland parched by record-breaking heat and low humidity.

Another group of fires called the SCU Lightning Complex more than doubled in size overnight, and is now burning over 85,000 acres, while the CZU August Lightning Complex has grown to over 10,000 acres and forced evacuations in Santa Cruz County.

Governor Gavin Newsom declared a statewide emergency on Tuesday and California requested 375 fire engines from out of state to fight the blazes.

To the east, at least four large wildfires burned in drought-stricken Colorado. The state’s Pine Gulch Fire grew to over 125,000 acres overnight to become the second largest in Colorado’s history, according to the Rocky Mountain Area Coordination Center. The fire remains at 7% containment, according to the InciWeb fire data site.

(Reporting by Steven Lam, additional reporting by Andrew Hay; Editing by Bill Tarrant, Steve Orlofsky and Andrea Ricci)

Last year was one of three warmest on record, researchers find

By Nina Chestney

LONDON (Reuters) – Last year was one of the three warmest on record, with glaciers melting, sea levels rising and a spate of wildfires, heatwaves and droughts, research published in the Bulletin of the American Meteorological Society (BAMS) showed.

The BAMS annual State of the Climate Report, by 528 climate scientists from 61 countries, said only 2015 and 2016 were hotter than 2019, based on records dating to the mid- to late 1800’s.

Each decade since 1980 has been successively warmer than the preceding one, with the most recent (2010-2019) being around 0.2 degrees Celsius warmer globally than the previous (2000–09).

For the 32nd consecutive year, 2019 saw the loss of mass from mountain glaciers, while lake temperatures were above the long-term average and permafrost temperatures continued to rise.

In 2019, global mean sea level set a new record for the eighth year running, reaching 87.6 mm above the 1993 average when satellite measurements began, with an annual average increase of 6.1 mm from 2018, the report said.

Greenhouse gas emissions, which contribute to climate change and pollution, increased. Carbon dioxide emissions rose by 2.5 parts per million (ppm), nitrous oxide by 1 part per billion (ppb) and methane by 9.2 parts per billion, the report said.

“A number of extreme events, such as wildfires, heatwaves and droughts, have at least part of their root linked to the rise in global temperature,” said Robert Dunn from the UK’s Met Office, which contributed to the report.

“The rise in global temperature is linked to another climate indicator: the ongoing rise in emissions of greenhouse gases, notably carbon dioxide, nitrous oxide and methane.”

Pressure is building for governments to do more to limit emissions to maximize the chances of capping a rise in average global temperatures at 1.5C, a goal enshrined in the 2015 Paris climate agreement.

(Reporting by Nina Chestney; Editing by Mark Heinrich)

Climate change, COVID-19 stoke wildfire’s economic risk, Fed says

(Reuters) – Wildfires threaten the economy of the western United States to a greater extent than the rest of the country, and the coronavirus pandemic and climate change will only make that worse, according to research from the San Francisco Fed on Monday.

Some 52% of economic output in Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington originates in counties with elevated wildfire hazard, putting the economies of the region in jeopardy as wildfires become more frequent and more destructive, the researchers found. By 2040 that proportion will have risen to 56%, they estimate. By comparison, about 25% to 30% of the Southeast’s economy faces elevated wildfire risk.

The states together account for a bit more than one-fifth of U.S. economic output.

“The portion of real output produced in (the counties of these states) with elevated exposure increases from $2.1 trillion in 2018 to $4.0 trillion in 2040 in the baseline scenario,” the researchers wrote in the regional Fed’s latest Economic Letter. The economic output under particular wildfire threat rises to $4.4 trillion under a more severe climate change scenario, they said.

Wildfire risk is a combination of the likelihood of a big fire happening – which climate scientists have shown has been rising as the planet warms – and the economic destruction, in terms of lives and livelihoods destroyed that it could cause.

The coronavirus pandemic is increasing the latter risk because the fiscal pinch to states and local governments from the drop in sales tax and other revenue means cuts to wildfire suppression and prevention spending, the researchers said.

(Reporting by Ann Saphir; Editing by Tom Brown)

Pandemic throws ‘curve ball’ at California wildland firefighters

A firefighter is working on extinguishing the Lilac Fire, a fast moving wildfire in Bonsall.

By Nathan Frandino

SANTA ROSA, Ca. (Reuters) – The coronavirus pandemic has forced California officials to rethink how they train for and fight wildfires to avoid spreading the virus among firefighters and the public.

In Sonoma County north of San Francisco, firefighters now receive training at the station level to maintain social distancing instead of coming together in large groups at their St. Helena headquarters.

When it comes to fighting fires, the big changes will be seen at incident command posts, which can bring together thousands of firefighters, according to Ben Nicholls the county’s division chief for the California Department of Forestry and Fire Protection (CalFire).

Briefings will likely be done via radio or video feed rather than in-person to avoid spreading the virus. Meal shifts will be staggered to avoid shoulder-to-shoulder contact among firefighters. Base facilities will have to be larger to house firefighters coming in from out of state to maintain social distancing, Nicholls said.

“COVID-19 has definitely thrown us a curve ball,” Nicholls said in an interview.

In California, as in the rest of the United States, the 2020 fire year has seen more and larger fires than in 2019 but the acreage burned remains below the 10-year average, according to data from CalFire and the National Interagency Fire Center.

There is a higher chance this year in California of earlier offshore winds that have in the past fanned the state’s largest and deadliest blazes, Nicholls said, adding they have not appeared.

One issue that remains uncertain for California firefighters is their budget. With California’s tax revenue deeply impacted by the pandemic, Nicholls said CalFire will be affected as well.

“At this point, it appears that we will see some sort of reduction. We just don’t know what that will look like,” Nicholls said.

(Reporting by Nathan Frandino in Santa Rosa, California; Editing by Bill Tarrant and Aurora Ellis)

No let-up in global rainforest loss as coronavirus brings new danger

By Michael Taylor

KUALA LUMPUR (Thomson Reuters Foundation) – Tropical rainforests disappeared at a rate of one football pitch every six seconds last year, researchers said on Tuesday, urging countries to include forest protection in post-pandemic plans.

The loss in 2019 of 3.8 million hectares (9.3 million acres) of tropical primary forest – which means intact areas of old-growth trees – was the third biggest decline since the turn of the century, according to data from Global Forest Watch (GFW).

“Primary forests are the areas we are the most concerned about – they have the biggest implications for carbon and biodiversity,” said Mikaela Weisse, a project manager at the GFW forest monitoring service, run by the World Resources Institute.

“The fact that we are losing them so rapidly is really concerning,” she told the Thomson Reuters Foundation.

Loss of primary forest, which hit a record high in 2016 and 2017, was 2.8% higher in 2019 than the year before.

Agricultural expansion, wildfires, logging, mining and population growth all contribute to deforestation, according to GFW researchers.

Cutting down forests has major implications for global goals to curb climate change, as trees absorb about a third of the planet-warming greenhouse gas emissions produced worldwide.

Forests also provide food and livelihoods for people who live in or near them, are an essential habitat for wildlife, and aid tropical rainfall.

Governments preparing post-coronavirus economic stimulus plans should include measures to protect forests, said Weisse.

In the short-term, the virus may weaken enforcement of forest laws, with people taking advantage of that to commit environmental crimes, she warned.

In the medium-term, economic stress could hike pressure for more extractive industries in forests or larger-scale agriculture, she added.

Workers coming home from cities after losing jobs could also turn to forests to help feed their families, increasing the risk of deforestation, she said.

“The situation has changed,” Weisse said of the COVID-19 pandemic. “What we need to do has also changed.”

WILDFIRES

The top three countries for primary forest loss last year – Brazil, Democratic Republic of Congo (DRC) and Indonesia – have remained largely the same this century, GFW researchers said.

Brazil accounted for more than a third of all primary forest loss in 2019 at 1.36 million hectares.

Many of the Brazilian forest fires that made international headlines last year did not occur inside primary forest, but in already deforested areas as farmers cleared logged land for agriculture and cattle, according to the data.

Neighbouring Bolivia, however, experienced record-breaking primary forest loss at 290,000 hectares, due to fires in both forests and surrounding woodlands, GFW said.

And Australia experienced a 560% jump in tree cover loss from 2018, driven by unprecedented bushfires, making it easily the country’s worst year on record.

The DRC saw its losses fall slightly to 475,000 hectares, still the third-highest year on record for the African nation, the data showed.

Malaysia lost 120,000 hectares of primary forest last year, ranking 6th behind Peru at 162,000 hectares, it added.

The figure for Indonesia remained at historically low levels for the third year in a row at 324,000 hectares, a 5% reduction in losses from 2018, according to GFW.

Tougher law enforcement to prevent forest fires and land clearing, and bans on forest-clearing and new oil-palm concessions all helped, said Arief Wijaya, forests and climate manager at think-tank World Resources Institute Indonesia.

“I would (now) like to see the government not only trying to reduce deforestation but reverse deforestation,” Wijaya said.

As the Southeast Asian nation battles the coronavirus pandemic, it is important that funds set aside for forest protection and restoration are not reallocated to help the wider economy and healthcare system, he added.

In total, the tropics lost 11.9 million hectares of tree cover – which includes all natural forests and tree plantations – in 2019, according to the GFW data.

“There has been so much international effort to try and slow or stop tropical deforestation, and the fact that we’re not seeing the numbers budge at a global level is something we are quite concerned about,” said Weisse.

(Reporting by Michael Taylor @MickSTaylor; Editing by Megan Rowling. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit http://news.trust.org)

Heatwave and high winds threaten to reignite Australian wildfires

By Paulina Duran

SYDNEY (Reuters) – Swathes of southeast Australia were bracing on Thursday for a days-long heatwave that threatens to stoke bushfires that have been burning for months.

As firefighters and residents prepared for the heightened danger, the New South Wales (NSW) state government launched a six-month inquiry to examine both the causes of and response to this season’s deadly wildfires.

“We don’t want to waste the opportunity to take on board any recommendations we need to adopt ahead of the bushfire season this year … as we approach summer of 2021,” said Gladys Berejiklian, the premier of NSW.

NSW state has been one of the hardest hit by bushfires, which started earlier than usual in September. The blazes have burnt out more than 11.7 million hectares (117,000 sq km) across Australia’s most populous states, killing at least 33 people and about 1 billion animals, and destroying 2,500 homes.

Fire danger warnings were issued on Thursday for several areas in South Australia state, where temperatures were forecast to exceed 40 degrees Celsius (104 Fahrenheit) and winds were expected to reach 35 kph (22 mph).

Among them was Kangaroo Island, a popular tourist destination that has already been razed by fires that killed two people. After a day of heat, by early evening no new fires had emerged.

“On Friday, there will also be hot and windy conditions, however, some parts of the Island may experience rainfall from mid-morning,” the state’s fire service said.

“A total Fire Ban is in place on the island, with a rating of SEVERE.”

In Victoria state, authorities issued a watch and act warning for people near Bendoc in the Snowy Mountains close to the New South Wales border.

“Don’t wait, leaving now is the safest option – conditions may change and get worse very quickly. Emergency Services may not be able to help you if you decide to stay,” emergency services officials said.

The severe heat and high winds are forecast to hit NSW and Victoria states from Friday threatening to spark new life into some of the 87 fires burning across the three states or create new blazes.

Australia’s dangerous summer weather has largely been driven by temperature variations in the Indian Ocean, which the country’s weather bureau said on Thursday were likely to keep conditions hot and dry until March.

Martin Webster, a NSW Rural Fire Service officer, highlighted the strains facing the state’s 74,000-strong volunteer brigade as the huge fires continued to burn.

“Our local crews have been actively involved in firefighting since August and we are still long way from being out of the woods, so we are talking six or seven months of firefighting,” Webster told the Australian Broadcasting Corp.

Here are Thursday’s key events in the bushfire crisis:

* There were five fires burning in the state of South Australia, 64 in New South Wales and 18 in Victoria.

* Berejiklian, firefighting officials and family of three U.S. firefighters killed in a plane crash in remote bushland last week, attended a memorial service where members of the aviation community paid their respects.

* Three firefighters who were trying to contain blazes in the Orroral Valley near Canberra were reported injured after a tree fell on their truck on Wednesday night, the ABC reported. Officials in the capital did not immediately return requests for information.

* Rating agency Moody’s on Wednesday warned increasingly frequent and severe natural disasters related to climate change would likely put at risk the ‘AAA’ credit rating of NSW.

(Reporting by Paulina Duran in Sydney; Additional reporting by Colin Packham and Melanie Burton.; Editing by Jane Wardell, Lincoln Feast and Alison Williams)

Australia calls for another mass evacuation as monster bushfires return

By Martin Petty and Colin Packham

MERIMBULA, Australia/SYDNEY (Reuters) – Australian authorities urged another mass evacuation across the heavily populated southeast on Thursday as a return of hot weather fanned huge bushfires threatening several towns and communities.

Victoria state Premier Daniel Andrews urged communities to be on alert ahead of the extreme conditions.

“If you receive instructions to leave, then you must leave,” Andrews said in a televised briefing. “That is the only way to guarantee your safety.”

Parts of Kangaroo Island, a wildlife-rich tourist spot off the southeast coast where Prime Minister Scott Morrison on Wednesday made a plea for foreign tourists not to be deterred by the fires, were again evacuated on Thursday.

“I urge everyone to heed warnings, follow advice, and to head to the east part of the island, which is deemed safe at this point,” South Australia Fire Chief Mark Jones said in a separate briefing in Adelaide.

A third of the island has been destroyed.

Twenty-seven people have been killed this fire season, according to the federal government, as the monster fires have scorched through more than 10.3 million hectares (25.5 million acres) of land, an area the size of South Korea.

Thousands have been made homeless and thousands have had to evacuate repeatedly because of the volatility of the fires.

Residents of the coastal town of Mallacoota, where thousands of people were stranded on a beach for days until a military evacuation that only ended on Wednesday, were among those again advised to flee.

“If we evacuate, where do we go?” said Mark Tregellas, who spent New Year’s Eve on a boat ramp as fire destroyed much of his town, and one of about 1,000 people who decided to stay.

“The electricity is slowly coming back but everyone is reliant on generators, and fuel for those is very limited,” he told Reuters by telephone from his house.

“People have now run out of petrol so most in the town are now riding on bicycles.”

Following are some highlights of what is happening in the bushfire crisis:

* A water bombing helicopter ditched in a dam on New South Wales South Coast on Thursday. The pilot was safe.

* Authorities have warned that the huge fires, spurred by high temperatures, wind and a three-year drought, will persist until there is substantial rainfall. The weather agency said there was no sign of that for months.

“It takes a huge amount of rain to put out bushfires of this intensity and of this scale. That’s not forecast,” South Australia Fire Chief Jones told reporters.

* Weather officials in South Australia issued a severe weather warning for some parts of the state’s north.

* New South Wales fire officials warned of “extreme fire danger” in the state’s alpine region.

* Victoria state extended its disaster alert level for another two days.

* The Australian Bureau of Meteorology reported only 6% of typical annual rainfall last year, while daytime temperatures were more than 2 degrees Celsius (3.6 degrees Fahrenheit) above normal: “Australia’s getting warmer, the fire season’s getting longer and the severity of the fire weather during that season is getting more frequent and severe.”

* New South Wales announced new funding of A$1 billion ($686 million) to rebuild.

* Mining magnate Andrew Forrest pledged A$70 million to a recovery package, including a force of more than 1,000 volunteers from the mining and agriculture sectors to help with rebuilding.

* 1,870 homes have been destroyed on the badly hit New South Wales coast.

* Moody’s Analytics said the cost of the fires could easily surpass that of deadly 2009 Black Saturday fires that destroyed 450,000 hectares of land, which cost an estimated A$4.4 billion.

* The prime minister has pledged A$2 billion ($1.4 billion) to a newly created National Bushfire Recovery Agency.

* About 100 firefighters from the United States and Canada are helping with another 140 expected in coming weeks.

* Malaysia has approved a plan to send 65 fire and rescue personnel to help. The deployment is awaiting Australian approval.

* Ecologists at the University of Sydney have estimated 1 billion animals have been killed or injured.

* The fires have emitted 400 megatonnes of carbon dioxide and produced harmful pollutants, the EU’s Copernicus monitoring program said.

* Smoke has drifted across the Pacific, affecting cities in South America, and may have reached the Antarctic, the U.N. World Meteorological Organization said.

(Reporting by Colin Packham, Martin Petty, Sonali Paul, Paulina Duran, Swati Pandey and Praveen Menon; writing by Byron Kaye; Editing by Jane Wardell, Robert Birsel)

Smoke stalls rescues as Australia plans for next fiery onslaught

By Sonali Paul and Swati Pandey

MELBOURNE/SYDNEY (Reuters) – Australian officials took advantage of better weather on Monday to reopen roads blocked by wildfires and move some people to safety although thick smoke stalled rescue efforts and hundreds of people remained stranded.

Fires have ravaged more than 8 million hectares (19.8 million acres) of land across the country, an area nearly the size of Austria, killing 25 people, destroying thousands of building and leaving some towns without electricity and mobile coverage.

Police on Monday confirmed the death of a 71-year-old man on the south coast of New South Wales (NSW) state who was reported missing on Dec. 31.

A second day of light rain and cool winds brought some relief from heat-fueled blazes that consumed parts of two states over the weekend, but officials warned the dangerous weather was expected to return this week.

Victoria state Premier Daniel Andrews said about 400 people were airlifted on Sunday out of Mallacoota, a small, coastal holiday town.

“We had a plan to airlift another 300 out today. Sadly smoke means that is not possible,” he said.

Prime Minister Scott Morrison, who has come under criticism for what opponents call his government’s failure to tackle climate change, announced A$2 billion ($1.4 billion) over two years for a newly formed National Bushfire Recovery Agency.

“What we are focusing on here is the human cost and the rebuilding cost for people’s lives,” Morrison told reporters in Canberra.

He said nearly 4,000 cattle and sheep have been killed in the fires. Countless wild animals have been killed.

Dean Linton, a resident of Jindabyne in the Snowy Mountains, used the break in the immediate threat to his town to visit his wife and four children who had fled to Sydney.

He also picked up a fire-fighting pump and generator to help him protect the family home.

“There’s a lot of fuel in that national park; it would only take one lightning strike,” Linton told Reuters.

The bushfire season started earlier than normal this year following a three-year drought that has left much of the country’s bushland tinder-dry.

Following are some highlights of what is happening:

* New Zealand Defence Force said the first of three air force helicopters being sent to help departed on Monday while the other two were expected over the next two days.

* There were no emergency warnings in fire-ravaged states on Monday following the weather change. Two people were missing as 146 fires burned in New South Wales (NSW) but all were back at the “advice” level, the lowest alert rating.

* Victoria state had 39 fires with 13 “watch and act” alerts. All missing people had been accounted for, authorities said.

* About 67,000 people have left or been evacuated from fire-ravaged areas in Victoria, state Emergency Services Minister Lisa Neville said.

* Victoria set up a Bushfire Recovery Agency, with initial funding of A$50 million. The recovery is expected to cost “a lot more” than A$500 million, state premier Andrews said.

* Fire officials said light rain that has brought some relief posed problems for back-burning efforts to starve fires of fuel.

* NSW state power distributor Essential Energy said its network had suffered “significant damage”, with almost 24,000 customers without power. It might take a while to restore power to some areas because of the extent of damage and difficulty in gaining safe access, it said. Affected areas include Batemans Bay on the New South Wales south coast.

* As conditions eased, the NSW fire service said residents of Bega, Tathra, Merimbula, Eden, Pambula, Bermagui and villages to the north and south can now return though they need to monitor conditions.

* Insurers have received 5,850 bushfire-related claims in NSW, Victoria, South Australia and Queensland since the Insurance Council declared a bushfire catastrophe on Nov. 8.

* Losses are estimated at A$375 million since November, with a further A$56 million in insured property losses in September and October, the Insurance Council said. Figures do not include properties lost over the past 24 to 36 hours in areas such as the NSW Southern Highlands and south coast.

* Accommodation provider Aspen Group <APZ.AX> said it expects a A$500,000 hit to both revenue and net operating income from the fires.

* Canberra was running short of masks as smoke blanketed the capital, ACT emergency services said. The National Gallery of Australia said it was closed to protect visitors and art works. The government department responsible for coordinating disaster response also closed due to poor air quality.

* Pictures on social media showed the city of Melbourne cloaked in thick smoke.

* Actor Russell Crowe skipped Hollywood’s Golden Globes ceremony, where he won an award for playing former Fox News Chief Executive Roger Ailes in the TV series “The Loudest Voice in the Room”. Presenter Jennifer Aniston said Crowe stayed in Australia to protect his family from the fires and read remarks he had prepared in which he said the fires were “climate change based”.

* Prime Minister Morrison faced more criticism of his handling of the crisis. “Poor political judgment is one thing. Competency is another thing altogether. This is the political danger zone Scott Morrison wants to avoid,” Rupert Murdoch’s the Australian newspaper, a supporter of the government, said in an article by the newspaper’s national affairs editor.

* Forty-one U.S. firefighters are in Victoria with a further 70 from Canada and the United States expected to join on Jan. 8, the Victoria Country Fire Authority said on Twitter.

(Reporting by Sonali Paul and Swati Pandey; Additional reporting by Paulina Duran and Jonathan Barrett in Sydney and Lisa Richwine in Los Angeles; Editing by Jane Wardell, Robert Birsel)