Insurers in California refused to renew more than 10,000 policies in fire-hazard areas in 2016 after previous fire disasters. Following 2017's devastating wildfire season, some experts say that trend could repeat itself.
California Insurance Commissioner Dave Jones told CNBC, "There are some number of communities that have already been experiencing challenges in some cases with obtaining private residential homeowners insurance," adding that it's not only rural areas but now some urban areas of the state that are increasingly getting viewed by insurers as an elevated fire risk.
More than 2 million homes in California are considered at high or extreme risk from wildfires, making the Golden State the most wildfire-prone state in sheer numbers, according to Verisk, a data analytics supplier to the insurance industry. It also estimates that 15 percent of the state's housing stock is exposed to elevated wildfire hazards. "The fires that occurred at the end of 2017 burned areas, including significantly urbanized areas like parts of Santa Rosa where whole subdivisions burned to the ground," Jones said.
Advertisement
Related Stories
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?
Building Materials
Lumber Leads Building Materials Prices Higher in March
Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops
