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Fire season is again upon us, and this year fires are again expected to ravage the California market. While September fires have been mild compared to the 2018 devastation, insurance companies are cautious about staying in high fire risk markets. In some areas with particularly high fire risk, insurance companies are pulling out completely, and in other areas, insurance rates have more than doubled. While the residential market has been hit the hardest, commercial is also open to increased insurance risk for the few properties that are in high-risk areas.

“Insurance has gotten much more difficult in both residential and commercial, and insurers have pulled out of some high risk markets near canyons and brush completely,” Steve Bram, co-founder and principal at George Smith Partners, tells GlobeSt.com. “So, the insurers won’t insure in some markets and there are big price increases in the markets where they will insure. If you have a house in a high-risk market, the insurer might take the policy from $10,000 to $30,000 or $40,000. Those are the kinds of increases that we are seeing.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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