The Evolving Landscape of Wildfire Insurance in California and Takeaways for Policyholders
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Melody Chen and Tom Goimarac coauthored an article with Jennifer Bentley (Senior Associate, FBM) published by the American Bar Association, Litigation Section, Insurance Coverage Litigation Committee.
They discuss how wildfires in California are becoming more frequent, severe, and unpredictable, prompting insurance companies to raise premiums, reduce or deny coverage, and even exit the market altogether.
The devastating 2025 Los Angeles wildfires have caused unprecedented losses and intensified these trends. In response, California regulators now require insurers to insure wildfire-prone areas. New regulations also allow insurers to use catastrophe models in calculating premiums; and pass on reinsurance costs to consumers, likely increasing premiums further. Policyholders should carefully assess their coverage limits and take steps to mitigate their wildfire risks. Businesses are also advised to consult insurance brokers and coverage counsel to navigate the evolving insurance landscape.
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