BiggerPockets Daily
How to Handle a Property Loss From a Wildfire
Feb 16, 2025
Recent wildfires in Los Angeles wreaked havoc on property owners and prompted insurers to reconsider coverage options. The limited FAIR Plan offers some relief, yet many still face uncertainty. Meanwhile, the discussion includes resources and responsibilities for landlords and tenants, stressing legal compliance to prevent price gouging. Additionally, navigating the aftermath involves understanding insurance claims and leveraging community support for recovery. It's a high-stakes environment for those affected, balancing recovery and resilience.
14:53
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The withdrawal of insurance coverage by major companies amidst wildfires has forced landlords to seek limited and costly alternatives like the FAIR Plan.
- Landlords have legal responsibilities and potential assistance programs available to help mitigate the financial impact and protect tenant rights post-disaster.
Deep dives
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.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
