Wildfires can have significant impacts on insurance companies in California. In recent years,
California has experienced devastating wildfires, resulting in large insurance claims and losses
for insurers. As a result, some insurance companies have adjusted their underwriting practices,
coverage options, and premiums for properties located in high-risk fire zones.
Insurers may conduct thorough risk assessments and evaluate factors such as a property’s
proximity to vegetation, historical fire patterns, defensible space measures, and access to fire
protection services. This evaluation helps them determine the level of risk associated with
insuring a property in a particular area.
Insurance companies may also consider non-renewals or cancellations for policies in high-risk
fire zones. This is done to manage their exposure to potential losses and maintain the overall
stability of their portfolios.
This year has seen a lot of market disruption, largely driven by carriers’ inability to get
adequate rate increases approved by the CA Department of Insurance. As a result, the market
for habitational and commercial Property risks is rapidly changing in California. Some carriers
have imposed temporary moratoriums on new business production, some carriers have exited
the market completely.
As a property owner, it’s crucial to regularly review your insurance coverage, understand any
changes or restrictions related to fire risks, and explore options with different insurance
providers if needed.
The good news is that ABS Insurance & Financial Services is here to guide you through this
tumultuous time!
Over the last decade, we have entered strategic partnerships with several carriers who
specialize in habitational and Commercial Property insurance
If you are seeing non-renewals or rate increase on your Commercial Property –
Please call us at 1-800-448-9243
www.absinsurance.com
