Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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.

More from this author

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.