Impact of LA Wildfires on Property Insurance

The LA wildfires have significantly impacted property insurance availability for landlords, with many companies withdrawing coverage before the fires even began. Insurers like State Farm and Allstate have dropped thousands of policies in high-risk areas, raising concerns for property owners. This has forced landlords to seek coverage through the FAIR Plan, which offers limited fire insurance but is often costly and provides only basic coverage. Such restrictions can leave landlords vulnerable, especially given rising construction costs that make cash value coverage inadequate for property replacement.