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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.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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