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The California Wildfires - What Impact Will They Have On Florida Insurance?


The California wildfires have been devastating. So far more than 12,000 homes and businesses have been destroyed, dozens of people have lost their lives and tens of thousands of acres continue to burn. It's hard to imagine the enormous impact this tragic event will have on the state's insurance industry. Some are estimating the event to cost California carriers more than $40 Billion… and the fires continue to rage on.

Here in Florida unfortunately, we know the incredible damage wildfires can do. In 1998, dry conditions resulted in more than a half million acres burning to the ground. Only two years ago, a fire in the Ocala National Forest, ignited by wind and an unfortunate series of lightening strikes, impacted more than 1,000 acres of land in Ocala. Yet today, as Florida residents watch the news in California, seeing how many personal residences are being demolished by the flames, many are wondering what the impacts will be to Florida's already-challenging home insurance market. Will prices continue to increase for those with carriers that also serve California? The good news is that, according to Mark Frielander with the Insurance Information Institute (video interview link here: Could California wildfires impact Florida home insurance rates?), carriers assume their own risks in each state and have different subsidiaries as a result. These risks are rated at a local level, not national, so the current fires in California will not affect Florida's home insurance rates.

And while this is positive news, we feel it's important to understand what your home insurance does (and doesn't) cover when it comes to fire damage.

Your basic dwelling coverage is meant to rebuild or repair your home after a fire event. Your policy may also provide some of the following benefits, depending on your carrier and any additional coverages you've elected to add on to your base policy:

  • Debris removal
  • Replacement of personal property (i.e. clothing, furniture)
  • Refunded costs tied to lawsuits (for your home's fire impacting your neighbors)
  • Provisions for temporary lodging and food while you are displaced
  • Coverage for unattached structures like fences and sheds
  • Replacement of lost income for investment properties


(It's important to note that fire events tied to negligence, lack of maintenance and arson are not covered.)

Essentially, aside from base coverage for repair and replacement of your main living structure, coverages vary and you should talk to your insurance agent to make sure your current policy adequately covers the value of your precious home and belongings.

The beginning of the year is a great time to carefully review your current home insurance policy to determine if an adjustment in coverage may make sense. Our agents are always ready to answer your questions and assist you in making any changes to your policies when the time comes. Simply reach out anytime!