Fires Likely to Help Fuel Insurance Rate Hikes

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As California heads into another season of wildfires that have been growing more frequent and more ferocious, homeowners are facing higher prices to insure their property.

In the last year, some big insurance companies have won approvals from regulators for premium hikes ranging from 4 percent to 7 percent. And a round of requests for similar increases has been submitted to the state insurance commissioner.

In a state parched by a three-year drought, wildfires are at least partly to blame for the price increases, industry officials and even some consumer advocates agree. In addition, more fire victims could find that they didn’t have enough coverage to pay the entire cost of rebuilding their homes.



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