The deadliest wildfire America has seen in over a century has been largely contained, three weeks after it spread rapidly over once-vibrant parts of western Maui.
But as the work of restoration begins, not only have many lives been lost — the latest count officially being 115 dead, though 388 were reported still missing as of earlier this week — but also a profound concentration of wealth on many levels: individual, communal and cultural. The vast majority of the 2,207 damaged or destroyed buildings in Maui County, where the fires were most concentrated around the historic town of Lahaina, were residential — 86%. Many survivors were left homeless.
“It’s pretty devastating. I have clients who are in all ranges, some who had little or no insurance and some that were fully covered,” said Jennifer Macedo, a financial advisor based in Lahaina.
Macedo, a certified financial planner who is the founder of registered investment advisor Front Street Financial, fled with her family in their car on the first afternoon of the fires. They almost lost their property, as they could see from the road that the flames were close, but were fortunate to learn later through aerial imagery that it had survived mostly unscathed. Macedo’s family was able to stay with a friend immediately after the disaster, as their home was not yet cleared as a biosafe area to reenter.
“We’ve been in the community for 25-plus years. And so it’s heartbreaking — every day we hear of new people that we knew that have passed away,” Macedo said in an interview.
Lahaina, a former capital of the Hawaiian kingdom prior to the kingdom’s annexation by the U.S., is likely known to many clients of wealth managers as an attractive tourist town. However, it was also a site of many important treasures showcasing the legacy of the Native Hawaiian people — treasures which have in many cases been completely destroyed by the wildfire.
Billionaires including Oprah and Jeff Bezos, who live on the island, announced multi-million dollar donations toward efforts to help their affected neighbors. An estimate released by the government puts the total financial damages so far at around $5.5 billion.
The sobering news comes as many other disasters have intensified in destruction and frequency, which scientists have linked to climate change and global warming. Several disasters have struck in recent weeks across the United States. The waters of Hurricane Idalia continue to ravage Florida, Georgia and the Carolinas as of this writing, and many parts of the country have experienced record-breaking heat and unexpected wildfires.
“What we’re learning is, wildfires can quite literally happen anywhere,” insurance expert Kevin Daley said in an interview. “For a long time when you thought about wildfires, people would principally think of California or maybe expand that a bit to the Western states.” Daley is the president and Western region private client leader at EPIC Insurance Brokers & Consultants, where he helps advisors find clients insurance.
Financial Planning spoke with experts on what financial advisors can do to help clients and the Native Hawaiian community affected by the disastrous fires on Maui, as well as help other clients at risk of suffering harm from future disasters. Below are five tips they shared.
Additional resources to help the Lahaina community include: