CoreLogic, a real estate data firm,estimates $35 to $45 billion in losses.
As wildfire risks increase, insurance policies are either denying claims or refusing coverage entirely.
State Farm, for example,canceled around 1,600 homeowner policiesin the Pacific Palisades months before the devastating fires.
Does my insurance cover wildfires?
Today, protection from wildfire damage depends on where you live.
Homeowners in low-risk areas are likely covered, whereas those in high-risk areas might not be.
With an HO-5 policy, owners are covered againstallperils unless something is specifically excluded.
In that case, look for a list of events where your losses arenotcovered.
If you’re still not sure what’s included in your coverage, pick up the phone.
Godfread said that every state has consumer advocates who can assist you in finding the insurance coverage you need.
In California, more homeowners have been steadily turning to theFAIR plan.
By early 2024, the state was receivingmore than 1,000 applications each dayfrom homeowners looking for coverage.
They also typically have a lower cap and higher deductible.
In California,over 41,000 homeowners had coveragefrom surplus lines insurers as of 2023.
That ratio reflects how much your insurance will pay out compared to the cost of rebuilding the property.
Is getting wildfire insurance going to get harder?
All signs point to an uphill battle for homeowners struggling to secure the right coverage to protect against wildfires.
If you receive a notice that your wildfire coverage is disappearing, however, don’t immediately despair.
“If you get a nonrenewal notice, start shopping without delay.
An independent agent or broker is a good place to start,” Godfread said.
